Muthoot Finance reported a strong set of numbers for the third quarter of FY26, with net profit rising about 95% year-on-year to nearly ₹2,650 crore. The jump in earnings was driven by sharp growth in its gold loan business and higher interest income.
The company’s gold loan assets under management (AUM) rose significantly compared to last year, supported by high gold prices and steady demand for secured loans. Total income also grew strongly, reflecting expansion in its core lending operations. Management has indicated healthy growth momentum and expects gold loan expansion to remain strong for the rest of the financial year.
However, despite the robust earnings, the stock saw selling pressure and fell around 10% after the results. Investors appeared cautious about certain underlying trends. Analysts pointed out that while the value of gold loans increased due to higher gold prices, the actual volume of gold pledged (in tonnage terms) showed some moderation sequentially. There were also concerns about whether such high profit growth can be sustained in coming quarters.
Brokerages remain largely positive on the company’s long-term prospects. They cite its strong franchise in the gold loan segment, improving margins, and disciplined cost management as key strengths.