Synopsis:
Muthoot Capital Services stock took an 11% hit in its share price after reporting a loss of Rs 4.41 crore in Q1 FY26, versus a profit in its previous year and quarter. Additionally, its asset quality worsened over the quarter.
The shares of this leading NBFC are in focus after the company reported a loss as compared to profits in its previous year and quarter. Additionally, its asset quality worsened during the quarter. In this article, we will dive more into the details.
With a market capitalization of 445 crore, the shares of Muthoot Capital Services are currently trading at Rs 271 per share, representing a decline of 33 percent from its 52-week high of Rs 405.70 per share. Over the past five years, the stock delivered a negative return of 27 percent.
Q1 Highlights
Muthoot Capital reported a net interest income of Rs 70.21 crore in Q1 FY26, up by 25 percent from its Q1 FY25 income of Rs 56.30 crore. However, on a QoQ basis, its income climbed by minute 0.75 percent from Rs 69.69 crore.
Coming to its profitability, the NBFC reported a net loss of Rs 4.41 crore in Q1 FY26 as compared to a profit of Rs 11.41 crore in Q1 FY25. It also reported a net profit of Rs 5.92 crore in its previous quarter.
Its asset quality strengthened on a YoY basis, but worsened on a QoQ basis. Its GNPA stands at 5.76 percent in Q1 FY26 vs 9.84 percent YoY and 4.88 percent QoQ. Additionally, NNPA stands at 2.70 percent in Q1 FY26 vs 3.41 percent YoY and 2.30 percent QoQ. Provision coverage ratio stands at 60 percent in Q1 FY26 versus 75 percent in Q1 FY25, and it remained unchanged from its previous quarter.
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Disbursements grew to Rs 618.58 crore in Q1 FY26, up by 24 percent from its Q1 FY25 figure of Rs 497.92 crore. However, on a QoQ basis, its disbursement declined 5.6 percent from Rs 655 crore.
Its Asset Under Management shows a different figure; its AUM grew 49 percent to Rs 3,238.74 crore in Q1 FY26 from Rs 2,178.85 crore in Q1 FY25. Additionally, it grew by 6 percent QoQ from Rs 3,057.76 crore.
Muthoot Capital Services Limited, founded in 1994 and located in Kochi, India, is a non-banking finance company (NBFC) that offers a variety of financial services, both fund-based and non-fund-based. They provide loans for two-wheelers, used cars, secured business ventures, and loyalty programs, as well as options for short-term and long-term deposits and subordinated debts. With a wide-reaching branch network throughout the country, they serve retail, corporate, and institutional clients alike.
Written by Satyajeet Mukherjee
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