Shares of Muthoot Finance Ltd., India’s largest gold loan non-banking financial company (NBFC), tumbled over 11 per cent even as the non-bank lender’s consolidated profit after tax (PAT) for Q1 FY27 increased to Rs 2,825 crore from Rs 1,974 crore last year, a 43 per cent year-on-year (YoY) increase.
Total income of Muthoot Finance rose to Rs 8,695 crore for the quarter under review from Rs 6,485 crore in the April-June quarter of FY26. Despite strong results and positive momentum in the stock market, the company’s shares opened gap-down at Rs 2,852, down 8.59 per cent from the previous close of Rs 3,120.10 on the BSE. Amid a spurt in trading volume by 6.65 times, it fell further to touch the intraday low of Rs 2,767, a fall of 11.31 per cent.
On the National Stock Exchange (NSE), the stock opened at Rs 2,876 and fell to a low of Rs 2,671, representing a 14.38 per cent decline.
What’s behind the fall?
The stock has tumbled despite strong numbers, as brokerages raised concern over margin compression due to normalisation of yields. At least three brokerages – Jefferies, Investec and Nirmal Bang – have downgraded the stock and cut the , as well as cutting their price targets on it.
| Financial Performance | Q1 FY27 | Q4 FY26 | QoQ % | Q1 FY26 | YoY % | FY26 |
| Group Branch Network | Rs 7654 crore | RS 7568 crore | 1% | Rs 7413 crore | 3% | Rs 7568 crore |
| Consolidated Gross Loan Assets of the Group | R s 1,91,532 crore | Rs 1,81,916 crore | 5% | Rs 1,33,938 crore | 43% |
Rs 1,81,916 crore |
| Consolidated Profit of the Group | Rs 2825 crore | Rs 3397 crore | -17% | Rs 1974 crore | 43% | Rs 10607 crore |
| Contribution in the Consolidated Gross Loan Assets of the Group | ||||||
| Muthoot Finance Ltd | Rs 1,68,163 crore | Rs 1,58,936 crore | 6% | Rs 1,17,141 crore | 44% |
Rs 1,58,936 crore |
| Subsidiaries | Rs 23369 crore | Rs 22980 crore | 2% | Rs 16797 crore | 39% | Rs 22980 crore |
| Contribution in the Consolidated Profit of the Group | ||||||
| Muthoot Finance Ltd | Rs 2484 crore | Rs 3028 crore | -18% | Rs 2004 crore | 24% | Rs 9929 crore |
| Subsidiaries | Rs 341 crore | Rs 369 crore | -8% | Rs -30 crore | NA | Rs 678 crore |
The company’s loan assets under management increased by 43 per cent to Rs 191,532 crore, up from Rs 1,33,938 crore in the same period last year.