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Business Standard
3 days ago
- Business
- Business Standard
Muthoot Finance dazzles after strong Q1 earnings
Muthoot Finance surged 11.05% to Rs 2788.25 after reporting robust earnings for the June quarter, buoyed by strong income growth and improved profitability. On a consolidated basis, net profit climbed 65% year-on-year to Rs 1,974.2 crore in Q1 FY26 from Rs 1,195.7 crore in Q1 FY25. Total income rose 44% YoY to Rs 6,485 crore in Q1 FY26 from Rs 4,492.4 crore a year ago. Muthoot Finance earns the bulk of its revenue from interest income, which rose 45% YoY to Rs 6,288 crore. Other income also saw an 88% increase to Rs 34.9 crore. Profit before tax stood at Rs 2,654 crore in Q1 FY26, up 61% from Rs 1,645.7 crore in Q1 FY25. Total expenses increased 35% YoY to Rs 3,831 crore from Rs 2,846.7 crore, driven by higher finance costs, which jumped 48% to Rs 2,354.9 crore, and employee benefit expenses, which were up 35% at Rs 696.5 crore. The groups consolidated gross loan assets stood at Rs 1,33,938 crore, up 37% YoY and 10% QoQ, with Muthoot Finance contributing Rs 1,17,141 crore and subsidiaries Rs 16,797 crore. During the quarter, consolidated loan assets under management increased by 10% of Rs 11,757 crore. On a standalone basis, Muthoot Finance (MFIN), Indias largest gold financing company in terms of loan portfolio, registered profit after tax of Rs 2,406 crore in Q1 FY26 as against Rs 1,079 crore in Q1 FY25, an increase of 90% YoY. Loan AUM stood at Rs 1,20,031 crore in Q1 FY26 as compared to Rs. 84,324 crore in Q1 FY25, registering a growth of 42% YoY. During the quarter, loan assets increased by Rs 11,383 crore registering a growth of 10%. Gold Loan assets increased by Rs 32,272 crore registering a growth of 40% YoY. George Jacob Muthoot, chairman said "As Indian economy advances, demand for quick, reliable, and affordable credit is rising and gold loans remain a critical enabler in this space. We are also accelerating our digital transformation journey to ensure faster, more seamless credit access for millions of customers across the country. Strategic investments in technology and innovation are enhancing operational efficiency and customer experience. With this momentum, we are confident of sustaining strong growth in the quarters ahead." George Alexander Muthoot, Managing Director, said, "Looking ahead, we are accelerating our efforts to digitally enable our gold loan offerings, making credit access faster, more seamless, and more inclusive. Our technology investments are already enhancing customer experience, reducing turnaround times, and strengthening operational efficiency. The recent RBI guidelines on gold loans will bring greater transparency and further streamline the lending process, while the recent interest rate cuts create a more favourable credit environment. With these supportive tailwinds, and our continued focus on innovation and service excellence, we are well-positioned to sustain strong growth through FY26 and beyond." The company offers easy access to credit for individuals who own gold jewellery but may face delays in accessing formal lending channels. Its core offering gold loans secured against gold jewellery supports individuals and small businesses with essential short-term liquidity. In addition, it also provides a range of financial services through subsidiaries, including personal and business loans, insurance distribution and money transfer services.
India Today
3 days ago
- Business
- India Today
Muthoot Finance shares jump 10% to hit record high after Q1 results. Should you buy?
Analyst sentiment remains largely positive on Muthoot Finance, with 15 out of 25 brokers maintaining 'buy' ratings on the stock, six 'hold,' and four 'sell.' Muthoot Finance shares hit all-time high after strong Q1 Morgan Stanley upgrades stock, targets Rs 2,920 with 16% upside Jefferies raises target to Rs 2,950; growth prospects strong Shares of Muthoot Finance surged 10% in early trading on Thursday, hitting an all-time high following the company's robust Q1FY26 results and a series of analyst upgrades. The gold loan financing company has seen its stock lifted by strong quarterly performance, rising investor confidence, and positive brokerage recommendations. Shares of the company were trading 10.43% higher at Rs 2,772.55 on the BSE at 10:04 am. Morgan Stanley upgraded Muthoot Finance to 'overweight' from its previous 'equalweight' rating, raising the price target to Rs 2,920 from Rs 2,880. The revised target implies a potential upside of 16% from Wednesday's closing price. The brokerage cited three key reasons for the upgrade: group-leading return on equity (RoE) and earnings per share (EPS) growth, potential ongoing consensus upgrades contrary to peers, and negligible asset quality risk despite a likely rise in bad loans. Jefferies also raised its price target to Rs 2,950 from Rs 2,660, implying over 17% upside, highlighting tailwinds to gold prices and room to lift loan-to-value ratios to support healthy loan growth. Analysts expect the company to deliver a net profit CAGR of 23% and an RoE of 21% over FY26–28. On the flip side, Motilal Oswal retained a 'neutral' rating with a price target of Rs 2,790, suggesting limited upside potential of 11%. The brokerage noted that while favourable gold loan trends and limited unsecured credit support growth, the current price already reflects many positives. Muthoot Finance's Q1 results were significantly better than expected. Consolidated loan assets under management (AUM) hit a record Rs 1,33,938 crore, up 37% YoY, with standalone AUM rising 42% to Rs 1,20,031 crore. Profit after tax reached Rs 2,046 crore, a 90% increase from the year-ago period. Gold loan AUM grew 40% YoY to Rs 1,13,194 crore. The company has also approved additional equity infusion of Rs 500 crore in Muthoot Money and Rs 200 crore in Muthoot Homefin. During the quarter, it opened 22 new branches, crossed a market capitalisation of Rs 1 trillion, and won six awards at the E4M Golden Mikes, including recognition for its 'Sunheri Soch' Season 3 campaign. George Jacob Muthoot, Chairman of Muthoot Finance, said, 'As the Indian economy advances, demand for quick, reliable, and affordable credit is rising – and gold loans remain a critical enabler in this space. We are also accelerating our digital transformation journey to ensure faster, more seamless credit access for millions of customers across the country. Strategic investments in technology and innovation are enhancing operational efficiency and customer experience. With this momentum, we are confident of sustaining strong growth in the quarters ahead.' Analyst sentiment remains largely positive, with 15 out of 25 brokers maintaining 'buy' ratings on the stock, six 'hold,' and four 'sell.' Following the strong quarterly performance, Nirmal Bang upgraded its rating from 'hold' to 'buy,' while Nuvama reiterated a 'buy' with an increased target of Rs 2,993, citing the company's strong earnings and growth prospects. Muthoot Finance's record-breaking Q1 has made it a stock to watch, with strong fundamentals, favorable market conditions, and continued institutional support driving investor interest. (Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.) Shares of Muthoot Finance surged 10% in early trading on Thursday, hitting an all-time high following the company's robust Q1FY26 results and a series of analyst upgrades. The gold loan financing company has seen its stock lifted by strong quarterly performance, rising investor confidence, and positive brokerage recommendations. Shares of the company were trading 10.43% higher at Rs 2,772.55 on the BSE at 10:04 am. Morgan Stanley upgraded Muthoot Finance to 'overweight' from its previous 'equalweight' rating, raising the price target to Rs 2,920 from Rs 2,880. The revised target implies a potential upside of 16% from Wednesday's closing price. The brokerage cited three key reasons for the upgrade: group-leading return on equity (RoE) and earnings per share (EPS) growth, potential ongoing consensus upgrades contrary to peers, and negligible asset quality risk despite a likely rise in bad loans. Jefferies also raised its price target to Rs 2,950 from Rs 2,660, implying over 17% upside, highlighting tailwinds to gold prices and room to lift loan-to-value ratios to support healthy loan growth. Analysts expect the company to deliver a net profit CAGR of 23% and an RoE of 21% over FY26–28. On the flip side, Motilal Oswal retained a 'neutral' rating with a price target of Rs 2,790, suggesting limited upside potential of 11%. The brokerage noted that while favourable gold loan trends and limited unsecured credit support growth, the current price already reflects many positives. Muthoot Finance's Q1 results were significantly better than expected. Consolidated loan assets under management (AUM) hit a record Rs 1,33,938 crore, up 37% YoY, with standalone AUM rising 42% to Rs 1,20,031 crore. Profit after tax reached Rs 2,046 crore, a 90% increase from the year-ago period. Gold loan AUM grew 40% YoY to Rs 1,13,194 crore. The company has also approved additional equity infusion of Rs 500 crore in Muthoot Money and Rs 200 crore in Muthoot Homefin. During the quarter, it opened 22 new branches, crossed a market capitalisation of Rs 1 trillion, and won six awards at the E4M Golden Mikes, including recognition for its 'Sunheri Soch' Season 3 campaign. George Jacob Muthoot, Chairman of Muthoot Finance, said, 'As the Indian economy advances, demand for quick, reliable, and affordable credit is rising – and gold loans remain a critical enabler in this space. We are also accelerating our digital transformation journey to ensure faster, more seamless credit access for millions of customers across the country. Strategic investments in technology and innovation are enhancing operational efficiency and customer experience. With this momentum, we are confident of sustaining strong growth in the quarters ahead.' Analyst sentiment remains largely positive, with 15 out of 25 brokers maintaining 'buy' ratings on the stock, six 'hold,' and four 'sell.' Following the strong quarterly performance, Nirmal Bang upgraded its rating from 'hold' to 'buy,' while Nuvama reiterated a 'buy' with an increased target of Rs 2,993, citing the company's strong earnings and growth prospects. Muthoot Finance's record-breaking Q1 has made it a stock to watch, with strong fundamentals, favorable market conditions, and continued institutional support driving investor interest. (Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.) Join our WhatsApp Channel
Mint
3 days ago
- Business
- Mint
Muthoot Finance share price jumps 10% after posting strong Q1 results. Do you own?
Muthoot Finance share price rallied over 10 per cent upper circuit to ₹ 2,776 apiece in early morning session on Thursday after the company posted strong financial results for the quarter ending on June 30, 2025, beating market estimates. Muthoot Finance shares have largely remained positive in both short-term and long-term. The NBFC stock delivered significant returns by surging over 23 per cent in six months and 53 per cent in one year. The NBFC stock has given multibagger returns to its long-term investors by surging over 128.40 per cent in five years. The company announced its Q1FY26 results, reporting a 65 per cent year-on-year (YoY) surge in profit after tax (PAT) to ₹ 1,974 crore, compared to ₹ 1,196 crore in the same quarter last year. On a sequential basis, PAT rose 37 per cent from ₹ 1,444 crore in Q4FY25. Muthoot Finance achieved its highest-ever consolidated loan assets under management (AUM) of ₹ 1,33,938 crore as of June 30, 2025, reflecting a 37 per cent YoY increase of ₹ 35,891 crore over the ₹ 98,048 crore recorded in the corresponding period last year. Quarter-on-quarter, consolidated loan AUM grew by 10 per cent, adding ₹ 11,757 crore. On a standalone basis, loan AUM reached ₹ 1,20,031 crore, up 42 per cent YoY, or ₹ 35,707 crore, while standalone PAT hit a record ₹ 2,046 crore, marking a 90 per cent jump from the previous year. 'As the Indian economy advances, demand for quick, reliable, and affordable credit is rising – and gold loans remain a critical enabler in this space. We are also accelerating our digital transformation journey to ensure faster, more seamless credit access for millions of customers across the country. Strategic investments in technology and innovation are enhancing operational efficiency and customer experience. With this momentum, we are confident of sustaining strong growth in the quarters ahead,' said George Jacob Muthoot, Chairman of Muthoot Finance, while commenting on the company's Q1 performance. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
3 days ago
- Business
- Economic Times
Muthoot Finance shares in focus on posting 65% YoY growth in Q1 PAT, record loan book
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The shares of Muthoot Finance may remain in focus on Thursday, August 14, after the company reported its Q1FY26 results , posting a 65% YoY to Rs 1,974 crore, up from Rs 1,196 crore in the year-ago the PAT grew 37%, up from Rs 1,444 crore in Finance reported its highest-ever consolidated loan assets under management ( AUM ) at Rs 1,33,938 crore as of June 30, 2025, marking a 37% year-on-year increase, or Rs 35,891 crore, over the Rs 98,048 crore recorded in the same quarter last the quarter, consolidated loan AUM grew by 10% sequentially, adding Rs 11,757 a standalone basis, loan AUM stood at Rs 1,20,031 crore, reflecting a 42% YoY growth of Rs 35,707 crore, while standalone profit after tax reached a record Rs 2,046 crore, up 90% from last Finance's gold loan AUM was Rs 1,13,194 crore as of March 31, 2025, with a 40% YoY increase of Rs 32,272 crore, the highest annual growth in this segment for the highlights for the quarter included crossing a market capitalisation of Rs 1 trillion, opening 22 new branches, and winning six awards at the E4M Golden Mikes, including the Golden Category award for Best Integrated TV Campaign and the Silver Category award for Best Use of Influencers/Celebrities on TV for the 'Sunheri Soch' Season 3 campaign.'As the Indian economy advances, demand for quick, reliable, and affordable credit is rising – and gold loans remain a critical enabler in this space. We are also accelerating our digital transformation journey to ensure faster, more seamless credit access for millions of customers across the country. Strategic investments in technology and innovation are enhancing operational efficiency and customer experience. With this momentum, we are confident of sustaining strong growth in the quarters ahead,' said George Jacob Muthoot, Chairman of Muthoot Finance, while commenting on the company's Q1 performance.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
3 days ago
- Business
- Time of India
Muthoot Finance shares in focus on posting 65% YoY growth in Q1 PAT, record loan book
Muthoot Finance shares: Muthoot Finance posted a 65% YoY rise in Q1FY26 PAT to Rs 1,974 crore, up 37% sequentially. The company reported a record consolidated AUM of Rs 1,33,938 crore, marking a 37% YoY increase. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The shares of Muthoot Finance may remain in focus on Thursday, August 14, after the company reported its Q1FY26 results , posting a 65% YoY to Rs 1,974 crore, up from Rs 1,196 crore in the year-ago the PAT grew 37%, up from Rs 1,444 crore in Q4FY25. Muthoot Finance reported its highest-ever consolidated loan assets under management ( AUM ) at Rs 1,33,938 crore as of June 30, 2025, marking a 37% year-on-year increase, or Rs 35,891 crore, over the Rs 98,048 crore recorded in the same quarter last the quarter, consolidated loan AUM grew by 10% sequentially, adding Rs 11,757 a standalone basis, loan AUM stood at Rs 1,20,031 crore, reflecting a 42% YoY growth of Rs 35,707 crore, while standalone profit after tax reached a record Rs 2,046 crore, up 90% from last Finance's gold loan AUM was Rs 1,13,194 crore as of March 31, 2025, with a 40% YoY increase of Rs 32,272 crore, the highest annual growth in this segment for the highlights for the quarter included crossing a market capitalisation of Rs 1 trillion, opening 22 new branches, and winning six awards at the E4M Golden Mikes, including the Golden Category award for Best Integrated TV Campaign and the Silver Category award for Best Use of Influencers/Celebrities on TV for the 'Sunheri Soch' Season 3 campaign.'As the Indian economy advances, demand for quick, reliable, and affordable credit is rising – and gold loans remain a critical enabler in this space. We are also accelerating our digital transformation journey to ensure faster, more seamless credit access for millions of customers across the country. Strategic investments in technology and innovation are enhancing operational efficiency and customer experience. With this momentum, we are confident of sustaining strong growth in the quarters ahead,' said George Jacob Muthoot, Chairman of Muthoot Finance, while commenting on the company's Q1 performance.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
