1. At a Glance
Muthoot Finance Ltd — the gold-plated NBFC that literally turns your mother’s bangles into your brother’s MBA fees — just dropped another glittering quarterly performance. As ofSeptember 2025, the company sits on a₹1.48 lakh croremarket cap throne, with astock price of ₹3,702, and athree-month return of 38%. If compounding were a religion, Muthoot would be its golden temple.
Sales for Q2 FY26 stood at a solid₹7,283 crore, up47.8% YoY, whilePAT skyrocketed 90.4% YoY to ₹2,421 crore— a number that would make even the gods of Mount Olympus reconsider investing in equity mutual funds. TheEPS for the quarter is ₹60.29, which annualized hits a shiny₹241 per share, giving it aP/E of ~15.3x on an annualized run-rate(vs reported 20.4x TTM).
The firm’sROE stands at 19.6%,ROCE 13.2%, and a dividend yield of0.7%— basically, a cash cow that’s occasionally generous. The Bhagavad Gita says,“Karmanye vadhikaraste ma phaleshu kadachana”— you have control over your work, not the results. But if you’re Muthoot Finance, you seem to control both.
2. Introduction
Once upon a time in Kerala, someone looked at a gold chain and thought, “Why not make this a loan product?” That genius spawned Muthoot Finance — nowIndia’s largest gold loan NBFC, with over4,855 branches,202 tonnes of goldunder custody, and an aura so shiny that even temple priests might ask for collateral.
In a world where fintech startups are burning cash faster than Diwali rockets, Muthoot just keeps compounding like your dad’s SIP — only shinier. From humble beginnings in the dusty lanes of Kumbanad to raisingUSD 600 million in senior secured notes, the journey is literally a case study on how to convert sentiment into solvency.
The Q2 FY26 numbers scream growth, profitability, and operational mastery. Loan AUM has ballooned to₹1,47,673 crore, up from ₹1,22,181 crore last year. The company’sgold loan book alone stands at ₹92,964 crore, proving that Indians trust Muthoot more than they trust their own cousins.
And while others whine about NIM compression, Muthoot smiles through its41%+ financing margin— because as long as people wear jewelry, Muthoot will never run out of collateral.
3. Business Model – WTF Do They Even Do?
Muthoot Finance’s business is basically the perfect desi marriage between emotion and economics. It thrives on that one line you’ve heard every festive season:“Keep the gold safe, but in case of emergency…”— and boom, a loan is born.
Here’s the funny part: Muthoot’s customers don’t care about CIBIL scores, and Muthoot doesn’t care about startup buzzwords. It simply lends against gold — the most recession-proof, sentimental, and liquid collateral known to the Indian middle class.
The company’s primary verticals include:
- Gold Loans (MFL Core)– The flagship arm, holding202 tonnes of gold, serving2 lakh customers daily.
- Muthoot Homefin (MHIL)– Affordable housing for India’s lower-income groups. AUM at ₹2,720 crore, growing 52% YoY.
- Belstar Microfinance (BML)– 66.13% owned subsidiary doing microfinance the desi way — Self Help Groups and Joint Liability lending. AUM stable at ₹8,703 crore.
- Muthoot Insurance Brokers– Cross-selling insurance, because if you’re already pledging your jewelry, might as well insure it too.
- Asia Asset Finance (Sri Lanka)– Gold loans across the Palk Strait. AUM up to LKR 2,840 crore.
- Muthoot Money Ltd– A smaller NBFC now turbocharged, with AUM jumping to ₹2,982 crore from ₹818 crore YoY.
In short — they lend against gold, then use those profits to fund home loans, microloans, and insurance — all while expanding their empire internationally. Think of it as the Avengers of financial intermediation, only with a lot more yellow metal.
4. Financials Overview
| Metric | Latest Qtr (Sep’25) | YoY Qtr (Sep’24) | Prev Qtr (Jun’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 7,283 | 4,929 | 6,450 | 47.8% | 12.9% |
| EBITDA (₹ Cr)* | 3,232 | 1,798 | 2,654 | 79.8% | 21.8% |
| PAT (₹ Cr) | 2,421 | 1,321 | 1,974 | 83.2% | 22.6% |
| EPS (₹) | 60.29 | 31.67 | 50.22 | 90.4% | 20.0% |
*EBITDA approximated as Financing Profit before depreciation and tax.
Commentary:When your profit doubles while competitors fight over NIM margins, you know you’re the boss. Muthoot’sprofit growth of 90% YoYis like watching a gold rate chart during wedding season — relentlessly upward. The financing margin remains at a golden44%, and the EPS looks like it’s preparing for a stock split.
5. Valuation Discussion – Fair Value Range
Let’s decode this NBFC bling using three lenses:
a) P/E Method:
- TTM EPS = ₹182
- Current P/E = 20.4x
- Industry P/E = 21x
- Annualized FY26 EPS (based on Q2) ≈ ₹241
So fair value range (based on FY26 earnings):= 15x to 22x → ₹3,615 to ₹5,300
b) EV/EBITDA Method:
- EV = ₹2,63,848 Cr
- TTM EBITDA ≈ ₹18,800 Cr→ EV/EBITDA = ~14xPeer range = 12–18xFair EV = 12x–18x EBITDA → ₹2.26L – ₹3.39L CrImplying equity value range per share:₹3,100 – ₹4,650
c) DCF Snapshot:Assuming 15% growth for 3 years, fading to 8%, with COE 12%.→ Fair value band:₹3,400 – ₹4,800
Fair Value Range:₹3,400 – ₹5,300(This range is for educational purposes only and not investment advice.)
6. What’s Cooking – News, Triggers, Drama
November 2025 was full of spicy announcements:
- USD 600M Bonds: Priced at 6.375%, listed on NSE IFSC. Muthoot casually raises foreign debt like your uncle swiping a credit card for Diwali gifts.
- USD 150M Additional Notes: Consolidated with the earlier tranche — clearly someone loves 2030 maturities.
- ₹35,000 Cr NCD Program: Approved for private placement. Because who doesn’t like a little leverage on top of leverage?
- ₹500 Cr Equity Infusion into Muthoot Money Ltd: For expansion, presumably into personal loans and LAP products.
- AI & Digital Push: iMuthoot app crossed 13.8 million downloads — now even your grandmother can pledge gold without leaving the sofa.
- Clarification to Exchanges:
