Highlights
- Consolidated Loan AUM rose 48% year-on-year to ₹1,64,720 crore as of December 31, 2025.
- Consolidated profit after tax for 9M FY26 increased 84% YoY to ₹7,209 crore.
- The stock is down 7.47% in five days despite gaining 56.07% over the past year.
Shares of Muthoot Finance Ltd (NSE:MUTHOOTFIN) are trading at ₹3,502.00 on February 16, down 2.35% intraday and 7.47% over five sessions, even as the stock remains up 56.07% over the past year. The pullback came despite the company’s financial results for the nine months ended December 31, 2025, outlining record loan assets under management (AUM) and profit growth across segments.
The drop might follow the broker ratings which remain mixed, with target prices ranging between ₹3,715 and ₹4,750.
Enquirus Securities has issued a reduce rating with a target price of ₹3,715. Investec Bank (UK) Plc has assigned a hold rating with a ₹4,000 target. Motilal Oswal and DAM Capital Advisors have both issued neutral ratings with targets of ₹4,500 and ₹4,000 respectively. Jefferies has a buy rating with a target price of ₹4,750.
Record Growth in Loan Book
For the nine months ended December 31, 2025, Muthoot Finance reported its highest-ever consolidated loan AUM at ₹1,64,720 crore, marking a 48% year-on-year increase. The standalone loan AUM rose 51% YoY to ₹1,47,552 crore.
Gold loans continued to anchor growth, with gold loan AUM increasing 50% YoY to ₹1,39,658 crore. The value of gold jewellery held as security stood at 205 tonnes, valued at ₹2,501 billion.
Average gold loan AUM per branch reached ₹28.10 crore, while gold loan disbursement to new customers increased 32% YoY to ₹20,737 crore, covering 13,13,710 customers. During the period, the group opened 150 new branches.
Profit Expansion Across Segments
Consolidated profit after tax for 9M FY26 came in at ₹7,209 crore, up 84% year-on-year. Standalone profit after tax rose 91% YoY to ₹7,048 crore.
Subsidiaries also posted growth. Muthoot Homefin (India) Ltd reported a 24% YoY increase in loan AUM to ₹3,380 crore, while revenue rose 38% YoY to ₹339 crore.
Muthoot Money Ltd recorded a 168% YoY rise in loan AUM to ₹8,003 crore and a 222% YoY increase in revenue to ₹862 crore. The company reported a profit of ₹203 crore compared to a loss of ₹2 crore in the previous year.
Asia Asset Finance PLC in Sri Lanka reported a 49% YoY rise in loan AUM to LKR 4,224 crore and a 36% YoY increase in profit after tax to LKR 68 crore, alongside an 11% expansion in branch network to 111 branches.
Muthoot Finance’s 9M FY26 results show expansion in loan AUM, higher gold loan volumes and increased profitability across standalone and subsidiary businesses. While the stock has declined in recent sessions, it continues to trade significantly above year-ago levels. With broker targets spanning ₹3,715 to ₹4,750, market participants are tracking valuation levels alongside operational performance metrics.
F&Q
- Why did Muthoot Finance shares fall in the last five days?
The stock declined 7.47% over five sessions despite reporting record AUM and profit figures for 9M FY26. - What drove growth in 9M FY26?
Growth was led by a 50% YoY rise in gold loan AUM and higher disbursements to new customers, alongside expansion in subsidiary businesses. - What are the latest broker target prices for Muthoot Finance?
Broker targets range from ₹3,715 (reduce) to ₹4,750 (buy), with multiple firms assigning hold or neutral ratings.