Muthoot Finance share price declines 5% despite stellar Q4 earnings

Muthoot Finance, India’s largest gold loan company, delivered stellar results for the March quarter and financial year 2024-25 (FY25), but the stock came under pressure amid broader market sentiment on Thursday, May 15, falling over 5% in intraday trade.

For the March quarter (Q4FY25), the Kerala-headquartered firm reported a 22 per cent year-on-year increase in consolidated net profit at ₹1,444 crore, up from ₹1,182 crore in the same quarter last year. This surge was supported by robust growth in its lending portfolio. On a standalone basis, net profit stood at ₹1,479 crore, marking a 41 per cent rise compared to ₹1,050 crore in the year-ago quarter.

The company’s consolidated assets under management (AUM) jumped 37 per cent year-on-year to ₹1.22 lakh crore, while standalone AUM surged 41 per cent to ₹1.06 lakh crore. Muthoot’s gold loan portfolio continued to be its main growth driver, with gold loan AUM reaching an all-time high of ₹1,02,956 crore—a 41 per cent jump over the previous year.

FY25 results

Annual consolidated profit after tax for FY25 stood at ₹5,352 crore, up 20 per cent from ₹4,468 crore last year. Standalone profit also saw a sharp 28 per cent rise to ₹5,201 crore. The company reported its highest-ever interest income of ₹15,586 crore for the year, reflecting strong customer repayment trends and an expanding lending base.

Other highlights

In terms of operational metrics, Muthoot Finance achieved multiple milestones. The average gold loan AUM per branch touched a new high of ₹21.21 crore. The company disbursed ₹21,888 crore in gold loans to nearly 18 lakh new customers during the year – both the highest-ever figures in its history. The total gold pledged as security in Muthoot’s lockers reached 208 tonnes.

To reward shareholders, Muthoot Finance declared its highest-ever dividend of 260 per cent, translating to ₹26 per equity share of face value ₹10 each.

However, performance from its subsidiaries presented a mixed picture. The group’s microfinance arm, Belstar Microfinance, reported a 20 per cent decline in AUM to ₹7,980 crore, down from ₹10,023 crore in the previous year. The subsidiary also saw its annual net profit shrink sharply to ₹46 crore from ₹340 crore amid industry-wide stress and asset quality concerns.

Stock Price Trend

Despite the exceptional earnings report, Muthoot Finance shares dropped as much as 5.1 per cent to ₹2,139.20 on the BSE. The stock remains over 12 per cent below its 52-week high of ₹2,444.65 touched in March 2025. It has gained 35 per cent from its 52-week low of ₹1,580 hit in June 2024.

On a yearly basis, the stock is still up over 34 per cent. But it has struggled in recent months—declining around 1 per cent so far in May after a 9 per cent correction in April. This follows a 12 per cent rally in March, a 5.5 per cent decline in February, and a 5.7 per cent gain in January.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.