Muthoot Finance Share Price Crashes 5% Even After Solid Earnings: Explained

Muthoot Finance, a gold loan firm, has delivered a strong profit in the quarter ended March 31, 2025, but despite that its shares fell more than 5% during Thursday's intraday trade.

Muthoot Finance Q4 FY25 Results

The Kerala-headquartered non-banking finance company (NBFC) reported a 22% year-on-year increase in consolidated net profit at Rs 1,444 crore up from Rs 1,182 crore in the corresponding period of the previous fiscal. This rise was backed by robust growth in its lending portfolio.

The company's standalone net profit stood at Rs 1,479 crore, marking a 41% rise compared to Rs 1,050 crore in the year-ago period.

Additionally, Muthoot Finance's assets under management (AUM) zoomed 37% on a year-on-year basis to Rs 1.22 lakh crore, while its standalone AUM rose 41% to Rs 1.06 lakh crore.

Muthoot's gold loan portfolio was its biggest growth driver, with gold loan AUM reaching an all-time high of Rs 1,02,956 crore, which is a 41% jump over the previous year.

Muthoot Finance: FY25 Performance

The annual consolidated profit after tax (PAT) for FY25 stood at Rs 5,352 crore, up 20% from Rs 4,468 crore last year.

Additionally, the company's standalone profit also saw a sharp rise of 28% to Rs 5,201 crore.

The firm also reported its highest-ever interest income of Rs 15,586 crore for the year, reflecting strong customer repayment trends and an expanding lending base.

Muthoot Finance: Stock Price Trend

Despite the stellar earnings report, the shares of Muthoot Finance fell as much as 5.1% to Rs 2,139.20 on the BSE. The stock stood over 12% below its 52-week high of Rs 2,444.65 reached in March 2025. It has gained 35% compared to its 52-week low of Rs 1,580 hit in June 2024.

On an annual basis, the stock is still up more than 34%, but it has struggled in the recent months, declining around 1% so far in May after a correction of 9% in April.

This comes after a 12% rally in March, a 5.5% fall in February and a 5.7% rise in January.

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