MFMuthoot Finance533398Gold loan financing

Muthoot Finance showed strong operating performance but asset quality concerns emerged, with stage 2 and stage 3 loans surging and provisions jumping nearly 10 times sequentially

By ScoutQuest · Mon 2 Nov 2026, 8:27 AM IST · 1 min read

NII growth sequential

23 percent

Operating profit beat

25 percent

Gold loan AUM growth YoY

43 percent

NIM sequential improvement

152 basis points

NIM level

11.9 percent

Heard on business television between 08:31:05 - 08:34:05 IST.

• NII grew 23% sequentially, beating poll by around 19%; operating profit beat estimates by around 25%, though profit only marginally ahead of expectations.
• Gold loan AUM grew 43% YoY; NIMs recovered 152 basis points sequentially to 11.9% on better lending yields.
• Stage 2 loans surged nearly 1,140 basis points to 12.5%, stage 3 nearly doubled to 3.9%, and provisions jumped nearly 10 times sequentially.
• Management attributed the stress to customers adjusting to a new monthly instalment payment system and expects improvement, though no timeline was given.
• Management guided for around 25% AUM growth for FY27, yields stabilizing near 18.5% and NIM settling at 10.5-11%.
• Stock is down 38% year to date and 42% from its 52-week high; CLSA said risk-reward is attractive at 8 times FY28 calendar year PE, and Kotak Institutional Equities upgraded the stock to buy.

The call above is Kotak Institutional Equities's, reported here as they made it. Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.

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