Muthoot Finance: 4Q26: Earnings beat; gold loan growth momentum continues

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Muthoot Finance: 4Q26: Earnings beat; gold loan growth momentum continues

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Muthoot Finance

4Q26: Earnings beat; gold loan growth

momentum continues

Reiterate Rating: BUY | PO: 4,410 INR | Price: 3,531 INR

Earnings beat; Gold AUM growth strong at 10% QoQ 14 May 2026

Muthoot Finance (MUTH) delivered a strong quarter with +10% QoQ growth in gold loan Equity

AUM to INR1.54tn, attributable to resilient gold loan demand, supported by gold price

momentum and conservative environment for unsecured loans especially for non-

Key Changessalaried individuals. MUTH’s AUM grew by 50% YoY in FY26, surpassing the guidance.

The company delivered strong earnings beat with PAT at INR30.9bn (+105% YoY) (Rs) Previous Current

coming +19% above BofAe mainly on (i) higher NII at INR51.9bn (+79% YoY, +14% vs 2026E EPS 239.77 252.43

BofAe) mainly on pricing increase taken for certain type of loans, and some auction and 2027E EPS 258.38 262.56

ARC income, (ii) lower opex – cost to income moderated by 266bp QoQ, partly offset by 2028E EPS 276.39 286.18

(iii) higher provisions at INR2.4bn (vs INR1.6bn BofAe) with rise in GS-2/3 by 34bp/77bp,

which the company attributed to RBI’s borrower wise classification requirement, apart Pujita Pasumarthi >> Research Analyst

from which MUTH mentioned AQ has been broadly stable. Reiterate Buy with unchanged BofAS India

PO of Rs4,410. We revise our earnings forecasts by 2-4% as we factor in higher growth, pujita.pasumarthi@bofa.com

partly offset by higher provisions and opex. Further, we moderate stage-1/2 RoE and

increase beta, leading to an unchanged PO of INR4,410.

Stock Data

Risks: gold price decline, rising competitive intensity

New customer acquisition remains relatively muted with new customers taking fresh Price 3,531 INR