Muthoot Finance Share Price Falls 9% Despite 43% YoY Growth in Consolidated PAT & Loan AUM in Q1 FY27; Here’s Why
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Muthoot Finance reported a 43 per cent YoY rise in consolidated profit after tax to Rs 2,825 crore, while consolidated loan AUM increased 43 per cent to Rs 1.91 lakh crore in Q1 FY27.
✨ Key Takeaways
On Monday, Indian equity benchmark indices traded higher, with the benchmark Nifty 50 index rising 202.25 points, or 0.83 per cent, to 24,585.85. Despite reporting strong quarterly earnings, Muthoot Finance share price declined 8.90 per cent to Rs 2,842.10 after the company announced its financial results for the quarter ended June 30, 2026.
Muthoot Finance Q1 FY27 Results
Muthoot Finance reported a 43 per cent year-on-year increase in consolidated profit after Tax (PAT) to Rs 2,825 crore in Q1 FY27, compared with Rs 1,974 crore in the corresponding quarter last year. Consolidated Loan Assets Under Management (AUM) also grew 43 per cent YoY to a record Rs 1,91,532 crore, driven by continued strength in its core gold loan business.
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Download Service BrochureOn a standalone basis, the company reported profit after tax of Rs 2,550 crore, up 25 per cent YoY from Rs 2,046 crore in Q1 FY26. Standalone loan AUM increased 43 per cent to Rs 1,72,053 crore, while standalone gold loan AUM rose 44 per cent to Rs 1,63,298 crore.
Business Performance
During the quarter, consolidated gold loan AUM increased 48 per cent YoY to Rs 1,75,527 crore. The company disbursed Rs 8,937 crore in gold loans to 4,82,707 new customers, while the average gold loan AUM per standalone branch stood at Rs 32.47 crore. Muthoot Finance also expanded its network by opening 86 new branches during Q1 FY27.
Subsidiaries Deliver Strong Performance
Among its subsidiaries, Muthoot Money Limited reported 111 per cent YoY growth in loan AUM to Rs 10,550 crore, while profit after tax surged 366 per cent to Rs 172 crore. Belstar Microfinance posted a turnaround, reporting a profit of Rs 66 crore compared with a loss of Rs 128 crore in the year-ago quarter. Muthoot Homefin reported 13 per cent growth in loan AUM to Rs 3,496 crore, with profit after tax increasing 114 per cent to Rs 4 crore.
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Management Commentary
Chairman George Jacob Muthoot said the company began FY27 on a strong note with record consolidated loan AUM and robust growth driven by its core gold loan business. He added that continued investments in technology, digital transformation and operational efficiency are expected to support future growth and enhance customer experience. Managing Director George Alexander Muthoot said the company remains confident of sustaining growth momentum, supported by rising demand for gold-backed lending and its extensive branch network.
About Muthoot Finance
Muthoot Finance Ltd is India's largest gold financing company by loan portfolio. The company provides gold loans and other financial services through an extensive branch network across India and operates through subsidiaries engaged in housing finance, microfinance, insurance broking and overseas lending businesses.
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Disclaimer: The article is for informational purposes only and not investment advice.