Muthoot Finance Shares Soar 10% on Strong Q2 Results

Shares of Muthoot Finance rose nearly 10 per cent on Friday after the non-banking financial company (NBFC) reported a 87 per cent year-on-year (Y-o-Y) jump in its net profit in thesecond quarter of the financial year 2025-26 (Q2FY26).The NBFC's stock rose as much as 9.87 per cent during the day to a fresh high of ₹3,728.8 per share, the biggest intraday rise since August 14 this year. TheMuthoot Finance stockpared gains to trade 8.6 per cent higher at ₹3,690 apiece, compared to a 0.33 per cent decline in Nifty 50 as of 9:20 AM.Shares of the company gained for the second straight session and currently trade at 29 times the average 30-day trading volume, according to Bloomberg. The counter has risen 72 per cent this year, compared to a 9 per cent advance in the benchmark Nifty 50. Muthoot Finance has a total market capitalisation of ₹1.48 trillion.FOLLOW STOCK MARKET LIVE UPDATESMuthoot Finance Q2 resultsThe NBFC reported an87 per cent Y-o-Y jump in its consolidated net profitto ₹2,345 crore in Q2FY26, from ₹1,251.1 crore in the same quarter last year. Sequentially, profit rose 14.6 per cent from ₹2,046 crore.The NBFC reported consolidated profit of ₹4,386 crore for the first half (H1) of FY26, a 74 per cent jump over the corresponding period last fiscal. The company also reported its highest-ever consolidated loan assets under management (AUM), reaching ₹1.48 trillion as of September 30, 2025.Also ReadRupee drops for third session amid higher oil prices; opens at 88.72/$Stocks to Watch today: Muthoot Finance, TaMo CV, LG Electronics, Pine LabsJubilant FoodWorks shines among QSR players in Q2; should you buy shares?F&O trade: Derivatives strategy on IndiGo stock for November monthly expiryCapillary Technologies raises ₹394 cr from anchor investors ahead of IPOThe non-banking financial company’s total income rose to ₹6,461 crore in the quarter, up from ₹4,126 crore in the same period last year. Net interest income (NII), reflecting its core earnings, grew 58.5 per cent Y-o-Y to ₹3,992 crore.ALSO READ |Jubilant FoodWorks shines among QSR players in Q2; should you buy shares?Management commentaryThe microfinance sector is showing renewed resilience following the implementation of regulatory guardrails and improved underwriting, auguring well for future performance, George Alexander Muthoot, managing director, said in the statement.We are accelerating our digital transformation to deliver faster, more seamless credit access for millions of customers nationwide, he said. "With an enhanced branch network, a trusted brand, and sustained investment in technology and innovation, Muthoot Finance is well-positioned to deliver sustained growth throughout FY26 and beyond."Further, Muthoot Finance’s board has approved an additional ₹500 crore equity infusion into its wholly owned subsidiary, Muthoot Money, to strengthen its capital base and improve its capital adequacy ratio.Analysts on Muthoot Finance earningsNuvama Institutional Equities said Muthoot Finance delivered a strong beat on AUM growth, NIM and credit costs. With superior earnings and resilience against competitive pressure on loan yields, the brokerage retained its ‘Buy’ rating. It expects gold loan demand from low-income borrowers to remain robust and raised its target price to ₹4,000, from ₹2,993 earlier.Motilal Oswal said Muthoot Finance posted a strong all-around beat even after adjusting for one-off interest income. Gold loan growth stayed robust, asset quality improved on NPA recoveries, and NIMs and spreads expanded on higher yields and lower funding costs.With gold loan demand supported by limited access to unsecured credit, Muthoot is well placed to sustain healthy growth. The brokerage reiterated its ‘Neutral’ rating and raised its target price to ₹3,800.