Muthoot Fin hits record high after posting Q1 results; Buy, sell or hold?

Muthoot Finance shares recorded a new high on Wednesday, gaining 11 per cent, after the company released its Q1 results; check all details here

Muthoot Finance shares rose 11.4 per cent on BSE, recording an all-time high at ₹2,797 per share. The buying on the counter came after the company released its first quarter (Q1FY26) results on Wednesday, post-market hours.

 

At 9:54 AM, Muthoot Finance's share price was trading 10.16 per cent higher at ₹2,765.8 per share. In comparison, BSE Sensex rose 0.18 per cent at 80,686.13.   CATCH STOCK MARKET LATEST UPDATES LIVE

Muthoot Finance Q1 results recap

Muthoot Finance’s net profit surged 65 per cent during the April-June quarter (Q1) of FY26 at ₹19,742 crore, as compared to ₹11,957 crore a year ago. The company’s interest income grew 45 per cent to ₹62,880 crore, as against ₹43,483 crore year-on-year (Y-o-Y). 

 

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However, its total expenses also shot up by 35 per cent to ₹38,310 crore, as against ₹28,467 crore a year ago. 

 

Gold loan disbursement to new customers as of June 30, 2025, was at ₹6,355 crore and the average gold loan asset under management per branch was at ₹23.21 crore.  

 

Gold prices hit multiple record highs during the quarter. This benefits gold financiers as higher prices increase the collateral value, allowing borrowers to secure larger loans for the same amount of gold.

 

Additionally, tighter lending in the unsecured segment prompted people to shift to gold loans as an alternative source of funds, according to reports.

 

Muthoot Finance's standalone loan assets under management rose 42 per cent year-on-year (Y-o-Y) to ₹1.2 trillion at the end of the quarter, and interest income jumped about 53 per cent to ₹5,592 crore.

 

"We are well-positioned to sustain strong growth through fiscal 2026 and beyond," Managing Director George Alexander Muthoot said in a statement.

 

The company also approved equity infusion of ₹500 crore and ₹2 crore in its units, Muthoot Money and Muthoot Homefin, respectively.  ALSO READ | JSW Cement shares make positive D-Street debut, list at 4% premium

Should you buy, sell or hold Muthoot Finance shares?

 

Nuvama Institutional Equities has retained a ‘Buy’ on Muthoot Finance and has raised the target to ₹2,993 from ₹2,625. Muthoot reported a strong Q1FY26 unlike peers, with an all-round beat, according to brokerage. It added: Even without recoveries, yield was stable versus a decrease for peers. The contribution of subsidiaries to gold loans is increasing. 

Meanwhile, Kranthi Bathini, director-equity strategy, WealthMills Securities, recommends ‘holding’ stock at current levels for a few more quarters, but given the kind of global uncertainty in the market, in the short term, there is nothing wrong with taking some profit from the table.  Nitin Jain, Sr. research analyst, Bonanza has also suggested holding the stock as Muthoot Finance’s exceptional Q1 performance, expanded reach, and robust fundamentals place it on firm ground for continued growth and the quarter marks clear evidence of the company’s resilience and expansion in India’s NBFC gold loan sector.   He added: Investors should remain attentive to regulatory changes and gold price trends.