Muthoot Finance zooms 50% in 5 months; why gold financier hit new high?

In the past one year, the stock price of Muthoot Finance has skyrocketed by 84 per cent, as against 8 per cent rise in the BSE Sensex.

Muthoot Finance share price today

 

Share price of Muthoot Finance hit a new high of ₹3,997.95, gaining 2 per cent on the BSE in Wednesday’s intra-day deals in an otherwise subdued market on expectations of healthy earnings. In comparison, the BSE Sensex was down 0.16 per cent at 82,052 at 09:30 AM.

 

The stock price of the gold finance company surpassed its previous high of ₹3,994.75 touched on January 6, 2026. In the past five months, the stock has zoomed by 50 per cent. In the past one year, it skyrocketed by 84 per cent, as against an 8 per cent rise in the BSE Sensex.

 

 

What led gold financier's stock price to a new high?

 

Muthoot Finance reported an 87 per cent year-on-year (Y-o-Y) jump in its consolidated net profit to ₹2,345 crore in the second quarter (July to September) of the financial year 2025-26 (Q2FY26), as against ₹1,251 crore in the same quarter last year. Sequentially, profit rose 14.6 per cent from ₹2,046 crore. The company attributed the growth to strong lending activity during the period.

 

The non-banking financial company (NBFC), which is a leading player in the loan-against-gold market, reported consolidated profit of ₹4,386 crore for the first half (H1) of FY26, a 74 per cent jump over the corresponding period last fiscal.

 

The company also reported its highest-ever consolidated loan assets under management (AUM), reaching ₹1.48 trillion as of September 30, 2025.

 

In view of the strong performance in Q2, the management in the earnings conference call said they are upgrading FY26 gold loan growth guidance to 50 per cent from 30 per cent-35 per cent. Favourable regulatory changes by the Reserve Bank of India (RBI) for gold loan sector, higher gold price and tighter norms for unsecured credit are expected to boost gold loan demand. 

 

The management further said that the company will continue to expand its non-gold loan portfolio also, including microfinance. The non-gold loan portfolio is about 12 per cent-15 per cent of the consolidated loan board portfolio. The microfinance sector is showing renewed resilience following the implementation of regulatory guardrails and improved underwriting, auguring wealth for future performance, the management said.

 

Muthoot Finance's Q3 results preview

 

Kotak Institutional Equities expects Muthoot Finance loan book growth in October to December 2025 quarter (Q3FY26) to remain strong at 10 per cent quarter-on-quarter (QoQ) (8-11 per cent QoQ in the previous four quarters) following sharp 20 per cent QoQ rise in gold prices. Net interest margin (NIM) will likely moderate to 11.3 per cent (12.7 per cent in Q2FY26) as base period had elevated yields form recoveries from loans sold to ARC (Asset Reconstruction Company).

 

The brokerage firm in the sector update said that the company’s Cost/AUM (asset under management) will likely moderate to 2.7 per cent in Q3FY26E depsite 34 per cent growth in operating expense (2.8-3.3 per cent in the previous four quarters). Analysts have pen down the credit cost of 40 bps in Q3FY26E (0.2-0.9 per cent in the previous four quarters).   Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.