Synopsis: The share of this company fell despite strong Q4 earnings as investors reacted to rising NPAs in housing finance, higher credit losses, and regulatory concerns in the gold loan segment.
The share of this company, which is India’s largest gold loan non-banking financial company (NBFC) by loan portfolio, and provides quick personal and business loans secured against gold jewellery, gained traction after Q4 results.
With the market capitalization of Rs 1,34,279 crore, Muthoot Finance Ltd’s shares made a day low of Rs 3,306 per share, down 6.3 percent from its previous day’s close price of Rs 3,528.90 per share. The share of this company gave a return of 186 percent over the last five years.
Results overview
- QoQ View: The revenue from operations grew by 13.4 percent to Rs 9,289 crore in Q4 FY26 from Rs 8,188 crore in Q3 FY26 (Dec 2025). EBIDT saw an improvement of 14.8 percent to Rs 7,761 crore from Rs 6,762 crore in the previous quarter. Furthermore, net profit increased by 20.3 percent to Rs 3,397 crore from Rs 2,823 crore, which led to an EPS improvement of 19.5 percent to Rs 83.43 per share from Rs 69.84 in Q3 FY26.
- YoY View: The revenue from operations grew by 65 percent to Rs 9,289 crore in Q4 FY26 (Mar 2026) from Rs 5,622 crore in Q4 FY25 (Mar 2025), and EBIDT grew by 91 percent to Rs 7,761 crore in Q4 FY26 from Rs 4,073 crore in Q4 FY25. Accompanied by a net profit growth of 127 percent to Rs 3,397 crore in Q4 FY26 from Rs 1,444 crore in Q4 FY25, resulting in an EPS growth of 127 percent to Rs 83.43 per share in Q4 FY26.
- Fiscal year comparison: Revenue from operations rising 54.4 percent to Rs 31,209 crore from Rs 20,214 crore in FY25. Financing margin remained stable at 46 percent in both FY26 and FY25. Profit before tax increased 96.9 percent to Rs 14,305 crore in FY26 compared to Rs 7,266 crore in FY25, while net profit jumped 98.2 percent to Rs 10,607 crore from Rs 5,352 crore reported in the previous fiscal year.
Q4 highlights
The company reported record consolidated loan AUM of Rs 1,81,916 crore in FY26, registering a strong 49 percent YoY growth driven by expansion across its lending portfolio. Its core gold loan business remained the key growth driver, with gold loan AUM rising 54 percent YoY to Rs 1,65,030 crore, further strengthening its leadership in the secured lending segment.
Profitability reached historic highs during the year, as consolidated profit after tax nearly doubled, rising 98 percent YoY to Rs 10,607 crore. The strong earnings performance reflects healthy operating leverage, stable financing margins, and sustained growth in core lending operations.
On a standalone basis, AUM increased 50 percent YoY to Rs 1,62,826 crore, while standalone PAT surged 95 percent YoY to Rs 10,134 crore. The company also witnessed strong momentum across subsidiaries, with Muthoot Money reporting 151 percent YoY growth in AUM and a 2,679 percent jump in PAT, while Homefin and Sri Lanka operations continued steady expansion.
What could have gone wrong in Q4 that might be leading the sentiments?
- Asset Quality Deterioration in Housing Finance: While the core business was strong, the housing finance subsidiary, Muthoot Homefin, saw a significant rise in bad loans. Its Stage III Loan Assets (NPAs) surged from 1.17 percent in FY25 to 2.63 percent in FY26.
- Sectoral Challenges in Microfinance: Although the microfinance arm (Belstar) achieved a turnaround in the second half of the year, management acknowledged it operated amidst an “adverse environment” and “broader sectoral challenges”. Its Stage III Loan Assets stood at a high of 5.54 percent.
- New Regulatory Guidelines: The Chairman noted the introduction of new gold loan guidelines by the RBI. While framed as a positive step for transparency and governance, regulatory changes often introduce short-term uncertainty and compliance pressures that can weigh on investor sentiment.
- Rising Credit Losses: On a standalone basis, the company experienced a sharp 85 percent YoY increase in credit losses, rising from Rs 126.86 crores in FY25 to Rs 235.27 crores in FY26. Additionally, the Capital Adequacy Ratio declined from 23.71 percent to 20.75 percent over the same period.
About the business
Muthoot Finance is India’s largest gold loan non-banking financial company (NBFC) by loan portfolio. Headquartered in Kochi, Kerala, the flagship company of The Muthoot Group provides quick personal and business loans secured against gold jewellery. It caters largely to individuals and small business owners who lack access to formal banking credit.
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