Muthoot Finance shares fell 4% to hit a 9-month low of ₹2,870.45 during Wednesday's intra-day trading on the BSE, according to reports from Business Standard. The stock has corrected 31% from its 52-week high of ₹4,149 touched on January 29, 2026, and was trading at its lowest level since September 11, 2025. The stock had previously hit a 52-week low of ₹2,478 on August 13, 2025.
According to Motilal Oswal Financial Services analysis reported by Business Standard, Muthoot Finance delivered mixed performance during the fourth quarter of FY26. While gold loan growth was strong, the company experienced a quarter-on-quarter decline in gold tonnage and active loan accounts. Net interest margin (NIM) expanded during the quarter, supported by higher yields, lower cost of funds, and lending rate hikes in select schemes. However, asset quality weakened due to the RBI-directed shift from loan-level to borrower-level classification, which led to higher provisions and consequent credit costs during the quarter.
As reported by Equirus Securities to Business Standard, the decline in tonnage and customer base is particularly concerning as peers such as MGFL & FEDFINA have reported improving trends. The brokerage firm expects risks of market share losses for Muthoot Finance given the high competitive intensity and aggressive foray of multiple deep-pocketed AAA (or AA+ rated) non-banking finance companies (NBFCs) into gold loans. The yields/margins trajectory remains under watch amid rising competition from larger, lower-cost-of-funds NBFCs and banks.
According to Equirus Securities analysis reported by Business Standard, the brokerage firm has revised its growth estimates to 30%/10% YoY for FY27/FY28, aided by the customs duty hike. While a further rally in gold prices remains a key upside risk, competitive intensity is increasingly evident. The company is expected to maintain healthy loan growth momentum with favorable demand outlook for gold loans, driven by still somewhat constrained availability of unsecured credit.
As reported by Business Standard, George Jacob Muthoot, chairman, emphasized that FY27 is expected to be another year of disciplined growth and transformation with a strong focus on Muthoot Finance's vision to emerge as a diversified financial services group. The new gold loan guidelines are viewed positively as they are expected to accelerate the formalisation of the gold loan sector by strengthening transparency, governance, and customer confidence in organised players.
