Muthoot Homefin Q1 profit surges 113.71% to ₹4.21 crore amid market decline

The company's sales revenue increased 9.41% to ₹104.96 crore in Q1 FY2026, up from ₹95.93 crore in the same quarter of the previous financial year. As reported by Business Standard, this revenue growth demonstrates the company's ability to expand its business operations and market presence during the quarter.

Operating profit margin (OPM) improved to 52.79% in the June 2026 quarter, compared to 53.91% in the corresponding quarter of the previous year. According to the financial data reported by Business Standard, this marginal decline in OPM despite strong revenue growth indicates the company's focus on maintaining operational efficiency while scaling operations.

Profit Before Depreciation and Tax (PBDT) rose 15% to ₹7.45 crore in Q1 FY2026, compared to ₹6.47 crore in the same quarter last year. As reported by Business Standard, Profit Before Tax (PBT) increased 19% to ₹6.13 crore from ₹5.15 crore in the corresponding quarter of the previous financial year. These metrics reflect the company's improved operational performance and financial health during the quarter.

Despite strong financial performance, Muthoot Finance shares fell nearly 9% following the Q1 results announcement, with the stock trading at ₹2,844.30 as of 11:30 AM. Multiple brokerages downgraded the stock, with Jefferies downgrading to "Hold" from "Buy" citing margin compression due to yield normalization and lower lending rates. Investec downgraded to "Sell" from "Hold," while Nirmal Bang also downgraded to "Hold" from "Buy." The market concerns center on net interest margin (NIM) compression, increasing competition, and a softer earnings outlook, despite the company's robust operational growth.