The shares of Muthoot Finance jumped nearly 10 percent to hit a fresh 52-week high on November 14 after the company reported strong operating performance in the second quarter of the financial year 2026. The sharp rise in the share price also comes on the back of soaring gold prices.
The company also announced that its board has approved the plan to raise Rs 35,000 crore by issuing redeemable Non-Convertible Debentures (NCD) by way of private placement, in multiple tranches.
The shares of Muthoot Finance hit the upper circuit at Rs 3,730.30 apiece on BSE, while creating a fresh 52-week high. A rub-off effect was seen in the other gold loan financiers as well, with IIFL Finance and Manappuram Finance shares rising around 4 percent each.
Muthoot Finance Q2 Results:
Muthoot Finance on November 13 reported a standalone net profit of Rs 2,345 crore for the July-September quarter of the financial year 2026, marking a 87.4 percent YoY rise from the Rs 1,251 crore net profit reported in the corresponding quarter of the previous financial year. The firm's net interest income (NII) rose 58.5 percent to Rs 3,991 crore in the quarter under review from Rs 2,518 crore in the year ago period.
The company also reported in highest ever standalone loan assets under management (AUM) at Rs 1,32,305 crore, as well as highest ever gold loan AUM at Rs 1,24,918 crores as on September 30, 2025.
“We are pleased to report sustained continued growth momentum in our Consolidated Loan Assets Under Management which have reached a historic high of Rs 1,47,673 crores driven by robust performance of our core gold loan business…Our leadership in the gold loan segment underscores the deep trust customers place in us and the effectiveness of our customer-centric approach evidenced by the high levels of new customer acquisitions and repeat footfalls,” said George Jacob Muthoot, Chairman of the company.
“In the current economic environment, Muthoot Finance’s distinctive brand and customer focus provide a clear competitive advantage enabling us to serve millions of borrowers who depend on gold loan,” he added.
Muthoot Finance MD George Alexander Muthoot meanwhile announced that the company is upgrading its FY26 gold loan growth guidance from 15 percent to 30-35 percent, in view of the company’s strong performance during the quarter.
“Favorable regulatory changes by the RBI for gold loan sector, higher gold prices and tighter norms for unsecured credit are expected to boost gold loan demand. We will continue to expand our non-gold loan portfolio including personal loan, home loan and business loan while maintaining our total non-gold loan AUM including microfinance at about 12-15% of the consolidated loan portfolio. The microfinance sector is showing renewed resilience following the implementation of regulatory guardrails and improved underwriting, auguring well for future performance,” he said.
Motilal Oswal on Muthoot Finance:
Motilal Oswal Financial Services held a 'Neutral' call on the stock, but raised its target price to Rs 3,800 apiece. This implies an upside potential of nearly 12 percent from the stock’s previous closing price of Rs 3,393.10 apiece.
The domestic brokerage noted that the company’s strong operating performance in Q2 FY26 was driven by strong gold loan growth, improvement in GS3, an increase in gold tonnage and spreads rising on the back of NPA recovering and decline in CoF.
Motilal raised its FY26/FY27 EPS estimates by approximately 10 percent each to factor in higher loan growth and sustenance of current NIMs in the next fiscal as well. “Muthoot Finance now trades at 3.1x FY27E P/BV and 14x P/E and, in our view, has benefited from the tailwinds of: 1) a sharp rise in gold prices and 2) an improvement in gold loan demand due to the industry-wide rationing in unsecured credit. Muthoot Finance is indeed one of the best franchises for gold loans in the country, as is evident from its ability to deliver industry-leading gold loan growth and best-in-class profitability,” it added.
Bernstein held an ‘Outperform’ call on the stock, with a target price of Rs 3,400 apiece. This implies a marginal upside potential from the stock’s previous closing price.
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