Muthoot Finance shares plunge over 11% despite strong earnings

Shares of one of the leading non-banking financial companies, Muthoot Finance, plunged 10% after the company announced its Q3FY26 earnings on Thursday. The sharp fall in the share price came despite the company posting record numbers in earnings performance.

The shares traded 11.7% lower at ₹3,590 apiece at 9:45 am, adding more to the opening losses. At the consolidated level, the company’s AUM crossed ₹1.64 lakh crore, up by 48% YoY, while the standalone AUM rose by 51% YoY to ₹1.47 lakh crore. The majority of the standalone AUM was contributed by the gold loan segment at ₹1.39 lakh crore, which grew by 50% YoY. The company held 205 tonnes of gold with them with value of ₹2501 billion.

At the subsidiary level, Muthoot Money recorded 168% YoY jump in AUM at ₹8,003 crore, while the total revenue jumped 222% to ₹862 crore and posted a profit of ₹203 crore against the loss of ₹2 crore in the year-ago period.

After the results, global brokerages like Jefferies and CLSA have come with upgrades on the company. The Jefferies report said that strong gold prices, an LTV buffer and easing of branch expansion norms should support healthy AUM growth. While CLSA said calculated loan yields expanded sequentially despite a higher base, driven by continued interest recoveries, which also supported earnings growth for the quarter.

Muthoot Finance shares have outperformed its major peers by delivering 58% returns in last one year as compared to the benchmark NIFTY Midcap absolute at 19%.