Muthoot Finance drops 5% even as AUM hits record high; Q4 breakdown here

Shares of Muthoot Finance tumbled over 5 per cent on Thursday, even after its profit rose 30 per cent during the fourth quarter (Q4) of the financial year 2025, while recording its highest ever asset under management (AUM). 

 

Muthoot Finance stock fell as much as 5.22 per cent during the day to ₹2,142 per share, the biggest intraday loss since April 11 this year. The stock pared losses to trade 4.5 per cent lower at ₹2,157 apiece, compared to a 0.5 per cent decline in Nifty 50 as of 9:45 AM. 

 

Shares of the company have been rangebound since the beginning of this month, but have recovered about 10 per cent from its recent lows of ₹1,965, which it hit last month. The counter has risen 0.7 per cent this year, compared to a 3.6 per cent advance in the benchmark Nifty 50. Muthoot Finance has a total market capitalisation of ₹86,664.01 crore. 

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Muthoot Finance Q4FY25 analysis

 

The non-banking financial company (NBFC) posted a 30 per cent rise in net profit in Q4 at ₹1,477.7 crore. During the same period last year, the company had reported a net profit of ₹1,389.1 crore. Quarter-on-quarter (Q-o-Q) net profit rose marginally from ₹13,89.2 crore by 6.3 per cent.

 

Revenue from operations for the Jan-Mar quarter stood at ₹5,621.7 crore, up 35 per cent year-on-year (Y-o-Y) from ₹4,163.8 crore. Sequentially, revenue went up by 8.3 per cent from ₹5,189.7 crore.

 

The company declared an interim dividend of ₹26 per share for FY25 on April 21, 2025. 

 

Muthoot Finance records highest-ever AUM

 

The NBFC announced its highest-ever consolidated loan AUM, which reached ₹1,22,181 crore, reflecting a 37 per cent Y-o-Y growth. Its standalone loan AUM also saw a 43 per cent Y-o-Y increase, reaching ₹1,08,648 crore.

 

The company's Gold Loan AUM also reached ₹1,02,956 crore, marking a 41 per cent increase from the previous year. The company continued its expansion by adding 850 new branches, bringing the total branch network to 7,391 branches as of the end of FY25. 

 

Recent headwinds

 

The stock of the NBFC came under pressure recently after the Reserve Bank of India (RBI) proposed new rules to streamline gold loan practices, aiming to bring more transparency and control as lending in this segment grows rapidly. 

 

A uniform Loan-to-Value (LTV) cap of 75 per cent will apply to all gold loans, and bullet repayment loans must maintain this ratio on the full amount due at maturity. If the LTV stays breached for over 30 days, lenders must make an extra 1 per cent provision. Loans can’t be renewed if they breach LTV at maturity. Importantly, gold loans taken for income-generating purposes must be classified by actual use, and lenders must document and monitor how the funds are used.