Muthoot Finance shares are in focus as they fell by 7.8 percent following its reporting of its Q4 FY25 results with robust YoY growth in Net profit and Net Revenue, with robust operational performance.
With a market capitalization of Rs. 84,653 Crore, the stock of Muthoot Finance opened at Rs. 2294.60, down 1.40 percent from yesterday’s close, and after opening, it made a low of Rs. 2084.60, down 7.8 percent. Additionally, the Yearly return for the stock is 26 percent, and the past 5-year return is 157 percent.
Q4 FY25 Financial Highlights
The company reported a 35.01 percent YoY increase in revenue from Rs. 4,164 Crore in Q4FY24 to Rs. 5,622 Crore in Q4FY25. On a QoQ basis, the company reported an increase of 8.32 percent in revenue from Rs. 5,190 Crore in the previous quarter. Their Net profit saw an increase of 22.16 percent YoY from Rs. 1,182 Crore to Rs. 1,444 Crore for the same period. On a QoQ basis, the company reported an increase of 3.73 percent in Net profit from Rs. 1,392 Crore in the previous quarter.
The company has achieved a significant milestone with its standalone loan assets under management (AUM) and gold loan portfolio surpassing Rs. 1 lakh crore. In FY25, the company reported its highest-ever consolidated loan AUM at Rs. 1,22,181 crore, marking a robust 37 percent year-on-year growth. Additionally, the gold loan AUM also reached a record high, registering a strong 41 percent year-on-year increase to Rs. 1,02,956 crore.
The company also recorded several other highest-ever achievements during the year. It disbursed a record Rs. 21,888 crore in gold loans to 17,99,767 new customers—the highest in any financial year. Additionally, the company held the highest-ever quantity of gold as security in its lockers, amounting to 208 tonnes. It also reported its highest-ever annual interest collection, reaching Rs. 15,586 crore.
Reason for the Fall
Muthoot Finance shares recently saw a sharp decline following the Reserve Bank of India’s proposal to implement stricter, uniform regulations on gold loans, which form the core of the company’s business. This has raised investor concerns over future growth and profitability, as the new rules could affect operational flexibility and margins. The current drop may be a continuation of the earlier decline triggered by the RBI’s announcement, after which the stock had briefly recovered.
However, the management has stated, “The recent regulatory guidelines are a positive step for the sector; however, we have always operated with strong governance and are already aligned with these directives.” Despite this reassurance, the market may have expected a more detailed or proactive response from the management, leading to continued uncertainty among investors.
About the Company
Founded in 1939 and headquartered in Kochi, Kerala. Muthoot Finance Limited is India’s largest non-banking financial company (NBFC) specializing in gold loans. In addition to gold loans, the company also offers personal and business loans, insurance products, money transfer services, and gold coin sales.
Muthoot Finance is known for its focus on trust, transparency, and customer-centric services, which has cemented its position as a leading player in India’s financial landscape. As of FY25 Total Branch Network stood at 4,855, the total No. of loan accounts stood at 1.02 Crore, and the total No. of employees stood at 29,221.
Written By Abhishek Das
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