Muthoot Finance shares jump 10% to hit fresh record high on stellar Q2 show; brokerages see more upside
The company posted an 87.4 per cent year-on-year (YoY) rise in standalone profit after tax to Rs 2,345 crore, supported by robust gold loan demand amid high gold prices. It had reported a profit of Rs 1,251 crore in the corresponding quarter last year.
- Nov 14, 2025,
- Updated Nov 14, 2025 10:09 AM IST
Shares of Muthoot Finance Ltd surged 9.84 per cent in Friday's trade to touch a new all-time high of Rs 3,725, after the gold loan-focused non-banking financial company (NBFC) reported a strong set of numbers for the July–September quarter (Q2 FY26).
The company posted an 87.4 per cent year-on-year (YoY) rise in standalone profit after tax to Rs 2,345 crore, supported by robust gold loan demand amid high gold prices. It had reported a profit of Rs 1,251 crore in the corresponding quarter last year.
Net interest income (NII) rose 58.5 per cent YoY to Rs 3,992 crore, driven by continued momentum in the core gold loan segment and steady borrower activity.
Brokerages turned positive following the earnings beat. Motilal Oswal Financial Services (MOFSL) said Muthoot delivered a "healthy all-round beat", even after adjusting for one-off interest income.
It highlighted strong gold loan growth, improved asset quality due to recoveries from the NPA pool, and expansion in net interest margins (NIMs) and spreads, aided by higher yields and a lower cost of funds. MOFSL reiterated its 'Neutral' rating but raised its target price to Rs 3,800, valuing the stock at 3.2x Sep'27E BV.
Nuvama Institutional Equities said Muthoot reported a significant beat on AUM growth, NIM and credit cost. The NBFC delivered 10 per cent QoQ (quarter-on-quarter) and 47 per cent YoY AUM growth, while NIM expanded 51 basis points (bps) QoQ.
The gross Stage 3 ratio improved by 33 bps, supported by recoveries and increased lending to higher-yield segments. Core NII grew 18 per cent QoQ, aided by better yields and a slight decline in the cost of funds.
Nuvama retained its Buy rating, citing strong, better-than-peers earnings and Muthoot's ability to defend yields despite rising competition in the gold loan market. The domestic brokerage raised its FY26 and FY27 earnings estimates by 23 per cent and 28 per cent, respectively, and increased its target price to Rs 4,000, valuing the stock at 4.5x FY26E BV.
Shares of Muthoot Finance Ltd surged 9.84 per cent in Friday's trade to touch a new all-time high of Rs 3,725, after the gold loan-focused non-banking financial company (NBFC) reported a strong set of numbers for the July–September quarter (Q2 FY26).
The company posted an 87.4 per cent year-on-year (YoY) rise in standalone profit after tax to Rs 2,345 crore, supported by robust gold loan demand amid high gold prices. It had reported a profit of Rs 1,251 crore in the corresponding quarter last year.
Net interest income (NII) rose 58.5 per cent YoY to Rs 3,992 crore, driven by continued momentum in the core gold loan segment and steady borrower activity.
Brokerages turned positive following the earnings beat. Motilal Oswal Financial Services (MOFSL) said Muthoot delivered a "healthy all-round beat", even after adjusting for one-off interest income.
It highlighted strong gold loan growth, improved asset quality due to recoveries from the NPA pool, and expansion in net interest margins (NIMs) and spreads, aided by higher yields and a lower cost of funds. MOFSL reiterated its 'Neutral' rating but raised its target price to Rs 3,800, valuing the stock at 3.2x Sep'27E BV.
Nuvama Institutional Equities said Muthoot reported a significant beat on AUM growth, NIM and credit cost. The NBFC delivered 10 per cent QoQ (quarter-on-quarter) and 47 per cent YoY AUM growth, while NIM expanded 51 basis points (bps) QoQ.
The gross Stage 3 ratio improved by 33 bps, supported by recoveries and increased lending to higher-yield segments. Core NII grew 18 per cent QoQ, aided by better yields and a slight decline in the cost of funds.
Nuvama retained its Buy rating, citing strong, better-than-peers earnings and Muthoot's ability to defend yields despite rising competition in the gold loan market. The domestic brokerage raised its FY26 and FY27 earnings estimates by 23 per cent and 28 per cent, respectively, and increased its target price to Rs 4,000, valuing the stock at 4.5x FY26E BV.