MUTHOOTFIN
Large CapMuthoot Finance Limited
Financial Services
Muthoot Finance is India's largest gold loan NBFC, with an 87-year legacy, uniquely focused on gold-secured lending since 1939. Recognized as an Upper Layer NBFC by RBI, it serves 6.41 Mn active customers across 4,968 branches, with 95% of its loan book secured by gold. It also operates a subsidiary ecosystem for housing finance, microfinance, and insurance.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust needs verification, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 85/100Rev +65% YoY · PAT +135% YoY · +13% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹9,289 Cr | +65.2% | +13.4% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹3,397 Cr | +135.3% | +20.3% |
| PAT margin | 36.6% | +1089 bps | +209 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Muthoot Finance reported robust FY26 performance with consolidated AUM up 49% YoY and PAT surging 98% YoY, driven by strong gold loan growth and improved profitability ratios. Q4 FY26 also showed healthy sequential momentum.
The company demonstrated strong financial and operational performance in FY26, with significant AUM and PAT growth. Key profitability metrics like NIM and ROE improved substantially. While Stage III assets saw a QoQ increase, the YoY trend was positive, and overall asset quality remains strong with high gold collateralization. Digital adoption is accelerating, supporting operational efficiency and customer engagement. The strategic focus on gold loans and subsidiary expansion appears effective.
Standalone Loan AUM by Product
Latest issuer-disclosed distribution across 2 reported categories.
Expansion into underserved geographies
Muthoot Money Ltd. expanding selectively to avoid network overlap; Belstar Microfinance diversifying into gold loan.
Digital adoption and "Phygital" strategy
iMuthoot App saw 71% share of gold loan top-ups and 42% of interest repayments, with 25 Mn downloads.
Micro-enterprise working capital demand
Micro-enterprises increasingly use gold loans to fund inventory, expansion, and routine working capital needs.
Shift from informal to formal lending
Borrowers are shifting from local moneylenders to organised lenders for safer custody, transparent valuation, and fairer rates.
Consolidated Branch Network
7,568 branches as of Mar-26.
Muthoot Homefin (India) Ltd. Branches
175 branches as of Mar-26, up from 163 in FY25.
Asia Asset Finance PLC Branches
115 branches across Sri Lanka as of Mar-26, up from 100 in FY25.
Growing organised gold loan market
Projected size of ₹16 Lakh Cr for FY26, growing 33-36% YoY over FY25.
Regulatory support
Regulator provided the industry with a clearer foundation for growth.
Pan-India demand expansion
Changing perceptions and rising awareness are driving new branch expansions and growing demand in North, East, and West India.
Gold price volatility
The company manages this with a margin of safety on loans and borrower equity in gold ornaments.
Increase in Stage III Loan Assets QoQ
Standalone Stage III Loan Assets increased to 2.35% in Mar-26 from 1.58% in Dec-25.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for assessing long-term growth trends and the impact of annual strategic initiatives in a seasonal business. QoQ comparison is vital for tracking sequential momentum, asset quality shifts, and the immediate impact of market conditions or operational changes in financial services.
Consolidated Loan AUM
₹1,81,916 Cr, 49% YoY, 10% QoQ
Consolidated Profit After Tax
₹10,607 Cr, 98% YoY, 20% QoQ
Standalone Gold Loan AUM
₹1,54,084 Cr, 50% YoY, 10% QoQ (Mar-26 vs Mar-25 and Mar-26 vs Dec-25)
Standalone Net Interest Margin (NIM)
12.76% for FY26 (up from 11.45% in FY25); 13.38% for Q4 FY26 (up from 12.77% in Q3 FY26)
Balanced growth with prudence
Chairman states, "for growth to last, it must be balanced with prudence."
Trust as core lending principle
Managing Director emphasizes, "Trust is what we lend against - and always have."
Subsidiary ecosystem strategy
Each subsidiary expands reach across products, segments, or geographies while preserving the parent’s core focus on gold loan.
Digital integration for customer experience
Market leaders are integrating digital mobile layers for seamless onboarding, repayment, and customer service.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Standalone Gold Loan AUM Growth | 50% YoY, 10% QoQ | Sustained double-digit growth in standalone gold loan AUM. |
| Standalone Stage III Loan Assets % | 2.35% (Mar-26) | Reversal of QoQ increase in Stage III assets and maintenance of YoY improvement. |
| Standalone Net Interest Margin (NIM) | 13.38% (Q4 FY26) | Maintenance or further improvement in NIM amidst evolving borrowing costs. |
| Digital Transaction Share | 71% Gold Loan Top-ups, 42% Interest Repayments via iMuthoot App | Continued increase in digital transaction share and growth in iMuthoot App registered users. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
42NeutralSMA20 -8.5% / mo
Technical chart
MUTHOOTFINweekly · 3Y+65.8%Technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 34.
- SMA20 falling (~9.3% over last month) — short-term momentum negative.
- RSI(14) at 34 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 28% off 52W high · 20% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 75.9%.
- Quality contributes 17/20 to the score.
- Growth contributes 20/25 to the score.
Main drags
- Altman Z is 0.8, in distress territory.
- Balance sheet is weaker at 6/15; verify the latest quarterly trend.
- Valuation is weaker at 17/30; verify the latest quarterly trend.
NBFC valuation: P/B, ROA, borrowing cost, and asset quality
Lenders can look optically cheap before credit losses emerge, so valuation is tied to book quality.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +6 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 19th percentile of the scored universe and 35th percentile within Financial Services. Main check: balance sheet trust is weak at 22/100.
Mixed Trust Lite: Promoter holding is 73.4%. Key concern: Operating cash flow is negative at ₹-47393 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Financial Services: 35th pctile, median 62 · Large: 12th pctile, median 74
116 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 73.4%.
- ▸Promoter pledge is zero.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸4/4 latest quarters had positive YoY PAT growth.
Trust risks
- ▸Operating cash flow is negative at ₹-47393 Cr.
- ▸Debt/equity is 3.88.
- ▸Altman Z is 0.81.
- ▸Only 1 years of positive FCF.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 11.20
- P/B
- 3.04
- EV/EBITDA
- 1976.85
- Market Cap
- 119023.00Cr
Profitability
- ROE
- 30.90%
- ROCE
- 15.80%
- ROA
- 5.42%
- Dividend Y
- 1.01%
Growth (CAGR)
- Revenue 5Y
- 22.00%
- EPS 5Y
- 23.00%
- Revenue 3Y
- 38.00%
- EPS 3Y
- 43.00%
Balance Sheet
- Debt/Equity
- 3.88
- Interest Coverage
- —
- Altman Z
- 0.81
- Book Value
- 975.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 1/5
- OCF
- -47393.00 Cr
- EPS TTM
- 263.79
Shareholding
- Promoter Hold
- 73.35%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 29%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.