1. At a Glance
Q1 FY26 was basically Muthoot flexing on the entire NBFC space. Revenue at ₹6,450 Cr (+44.2% YoY), PAT ₹1,974 Cr (+69.6% YoY), financing margin back above 41%. Loan AUM up 37% YoY to ₹1.34 trillion — which is roughly the GDP of a small island nation. And yes, they now have a₹1 trillion market cap, because apparentlygold loansare the new SaaS.
2. Introduction
If banks are your “boring uncles” giving 9% personal loans with 50 documents, Muthoot is the flashy cousin who’ll hand you cash against your gold chain before you can say “karat.”
Operating out of 4,800+ branches across India, they serve2 lakh customers daily— which means somewhere, right now, someone’s wedding necklace is funding someone else’s small business.
3. Business Model (WTF Do They Even Do?)
- Core Business:Short-tenor gold loans — quick disbursals, secured by jewellery.
- Other Verticals:Money transfer, loans against property, corporate loans, microfinance.
- Security Stash:202 tons of gold jewellery under lock and key — making RBI’s vaults look understocked.
- Geography:Heavy South India base but pan-India reach.
4. Financials Overview
| Metric | Q1 FY26 | Q1 FY25 | Q4 FY25 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 6,450 | 4,474 | 5,622 | 44.2% | 14.7% |
| EBITDA* (₹ Cr) | 2,654 | 1,653 | 1,936 | 60.6% | 37.1% |
| PAT (₹ Cr) | 1,974 | 1,196 | 1,444 | 69.6% | 36.7% |
| EPS (₹) | 50.22 | 28.99 | 36.81 | 73.2% | 36.4% |
*Financing profit treated as proxy for EBITDA here.
Commentary:That’s not just growth — that’s a gold-fueled rocket. Margins back up, growth volume-driven, and clearly no shortage of people willing to pledge jewellery in 2025.
5. Valuation (Fair Value RANGE Only)
Method 1 – P/E
- EPS (TTM) ≈ ₹153.30
- Sector fair P/E: 13–18x for NBFCs with strong asset quality.
- FV range: ₹1,993 – ₹2,759
Method 2 – P/BV
- Book Value (FY25) ≈ ₹731
- Sector P/BV range: 2.5–3.5x
- FV range: ₹1,828 – ₹2,558
Method 3 – DCF (High-level)
- Base Net Profit ≈ ₹6,131 Cr, growth 10%, CoE 13%, terminal growth 5% → FV ≈ ₹2,200 – ₹2,700
📌Final FV Range:₹1,830 – ₹2,760 (Educational purposes only, not investment advice). CMP ₹2,510 sits neatly inside it.
6. What’s Cooking – News, Triggers, Drama
- AUM Growth:37% YoY — customers clearly trust Muthoot more than crypto.
- Subsidiary Funding:₹500 Cr pumped into Muthoot Money, extra equity into Muthoot Homefin.
- Gold Prices:Tailwind — rising gold value improves LTV cushion.
- Branch Network:Still expanding despite digital competition.
7. Balance Sheet
| Item | FY24 (₹ Cr) | FY25 (₹ Cr) |
|---|---|---|
| Assets | 96,453 | 132,835 |
| Liabilities | 71,747 | 103,868 |
| Net Worth | 25,107 | 29,366 |
| Borrowings | 68,125 | 99,383 |
