🔍Technical Analysis
Muthoot Finance Limited showcases one of the most impressive wealth creation stories spanning over a decade. The stock has delivered a super bullish rally from less than ₹100 to reaching ₹3,400 by November 13, 2025 - representing an extraordinary 34x growth in just over 10 years.
On the evening of November 13, 2025, the company announced its Q2 FY26 results which exceeded market expectations significantly. The market's immediate response was spectacular - the very next day on November 14, the stock shot up 10% and closed at ₹3,725, hitting an all-time high of ₹3,755 during intraday trading.
This powerful breakout from ₹3,400 to ₹3,725 demonstrates strong institutional and retail buying interest, fueled by robust fundamentals and exceptional financial performance. The stock has now entered uncharted territory with strong momentum.
Entry Strategy: Current levels offer opportunity with strong momentum. Consider accumulation on minor dips.
Targets:
Target 1: ₹3,800
Target 2: ₹3,900
Target 3: ₹4,000
Risk Assessment:
No expectations below ₹3,400 level, which now acts as strong support post-breakout.
💰Q2 FY26 Financial Highlights (vs Q1 FY26 & Q2 FY25)
Muthoot Finance delivered spectacular Q2 FY26 performance with standalone PAT surging 87% YoY to ₹2,345 crore and total income jumping 56.5% to ₹6,461 crore, driven by robust gold loan demand amid soaring gold prices. The company achieved highest-ever loan AUM of ₹1,47,673 crore (up 42% YoY) and gold loan AUM of ₹1,24,918 crore (up 45% YoY).
Net interest income (NII) rose impressive 58.5% YoY to ₹3,992 crore, driven by continued momentum in core gold loan segment and steady borrower activity. Net interest margin expanded significantly to 12.66% from 11.5% in Q2 FY25, indicating superior interest income growth and efficient capital deployment.
Gold loan AUM increased by ₹11,723 crore during Q2 FY26, registering 10% quarterly growth. Gold prices rallying over 40% in 2025 boosted customer confidence and loan demand. The board approved incremental fundraising up to ₹35,000 crore through NCDs and ₹500 crore equity infusion in subsidiary Muthoot Money Limited.
Asset quality showed remarkable improvement with Stage III loan assets declining to 2.25% from 4.3% YoY, while Stage II assets improved from ₹1,203 crore to ₹534 crore. Management upgraded AUM guidance to 30-35% growth, signaling high confidence in sustaining momentum through FY26.
Multiple brokerages turned bullish post-results: Nuvama raised target to ₹4,000 (from ₹2,993) maintaining Buy rating, Motilal Oswal increased target to ₹3,800 with Neutral rating, while Bernstein maintained Outperform at ₹3,400 citing 25% AUM CAGR potential over FY25-27E with 36% EPS CAGR and 24%+ ROE.
✅Conclusion
Muthoot Finance's remarkable decade-long journey from sub-₹100 to ₹3,755 all-time high, backed by exceptional Q2 FY26 showing 83% PAT growth and 48% revenue surge, validates the gold loan leadership thesis. Post-results 10% surge to ₹3,725 demonstrates strong market confidence. Highest-ever AUM at ₹1,47,673 crore, NIM expansion to 12.66%, and asset quality improvement with 2.25% Stage III loans showcase operational excellence. Management's upgraded 30-35% AUM guidance and brokerage targets at ₹3,800-₹4,000 support bullish outlook. Gold price tailwinds and digital transformation initiatives provide sustained growth visibility toward ₹4,000 target.
Disclaimer: This analysis is for educational purposes only. Please consult your financial advisor before making investment decisions. Stock markets are subject to risks.
Muthoot Finance Limited showcases one of the most impressive wealth creation stories spanning over a decade. The stock has delivered a super bullish rally from less than ₹100 to reaching ₹3,400 by November 13, 2025 - representing an extraordinary 34x growth in just over 10 years.
On the evening of November 13, 2025, the company announced its Q2 FY26 results which exceeded market expectations significantly. The market's immediate response was spectacular - the very next day on November 14, the stock shot up 10% and closed at ₹3,725, hitting an all-time high of ₹3,755 during intraday trading.
This powerful breakout from ₹3,400 to ₹3,725 demonstrates strong institutional and retail buying interest, fueled by robust fundamentals and exceptional financial performance. The stock has now entered uncharted territory with strong momentum.
Entry Strategy: Current levels offer opportunity with strong momentum. Consider accumulation on minor dips.
Targets:
Target 1: ₹3,800
Target 2: ₹3,900
Target 3: ₹4,000
Risk Assessment:
No expectations below ₹3,400 level, which now acts as strong support post-breakout.
💰Q2 FY26 Financial Highlights (vs Q1 FY26 & Q2 FY25)
- Total Income: ₹7,283 Cr (↑ +13% QoQ from ₹6,450 Cr; ↑ +48% YoY from ₹4,929 Cr)
- Total Expenses: ₹2,571 Cr (↑ +9% QoQ from ₹2,355 Cr; ↑ +42% YoY from ₹1,807 Cr)
- Operating Profit: ₹3,232 Cr (↑ +22% QoQ from ₹2,654 Cr; ↑ +80% YoY from ₹1,798 Cr)
- Profit Before Tax: ₹3,244 Cr (↑ +22% QoQ from ₹2,654 Cr; ↑ +80% YoY from ₹1,802 Cr)
- Profit After Tax: ₹2,412 Cr (↑ +22% QoQ from ₹1,974 Cr; ↑ +83% YoY from ₹1,321 Cr)
- Diluted EPS: ₹60.29 (↑ +20% QoQ from ₹50.22; ↑ +90% YoY from ₹31.67)
Muthoot Finance delivered spectacular Q2 FY26 performance with standalone PAT surging 87% YoY to ₹2,345 crore and total income jumping 56.5% to ₹6,461 crore, driven by robust gold loan demand amid soaring gold prices. The company achieved highest-ever loan AUM of ₹1,47,673 crore (up 42% YoY) and gold loan AUM of ₹1,24,918 crore (up 45% YoY).
Net interest income (NII) rose impressive 58.5% YoY to ₹3,992 crore, driven by continued momentum in core gold loan segment and steady borrower activity. Net interest margin expanded significantly to 12.66% from 11.5% in Q2 FY25, indicating superior interest income growth and efficient capital deployment.
Gold loan AUM increased by ₹11,723 crore during Q2 FY26, registering 10% quarterly growth. Gold prices rallying over 40% in 2025 boosted customer confidence and loan demand. The board approved incremental fundraising up to ₹35,000 crore through NCDs and ₹500 crore equity infusion in subsidiary Muthoot Money Limited.
Asset quality showed remarkable improvement with Stage III loan assets declining to 2.25% from 4.3% YoY, while Stage II assets improved from ₹1,203 crore to ₹534 crore. Management upgraded AUM guidance to 30-35% growth, signaling high confidence in sustaining momentum through FY26.
Multiple brokerages turned bullish post-results: Nuvama raised target to ₹4,000 (from ₹2,993) maintaining Buy rating, Motilal Oswal increased target to ₹3,800 with Neutral rating, while Bernstein maintained Outperform at ₹3,400 citing 25% AUM CAGR potential over FY25-27E with 36% EPS CAGR and 24%+ ROE.
✅Conclusion
Muthoot Finance's remarkable decade-long journey from sub-₹100 to ₹3,755 all-time high, backed by exceptional Q2 FY26 showing 83% PAT growth and 48% revenue surge, validates the gold loan leadership thesis. Post-results 10% surge to ₹3,725 demonstrates strong market confidence. Highest-ever AUM at ₹1,47,673 crore, NIM expansion to 12.66%, and asset quality improvement with 2.25% Stage III loans showcase operational excellence. Management's upgraded 30-35% AUM guidance and brokerage targets at ₹3,800-₹4,000 support bullish outlook. Gold price tailwinds and digital transformation initiatives provide sustained growth visibility toward ₹4,000 target.
Disclaimer: This analysis is for educational purposes only. Please consult your financial advisor before making investment decisions. Stock markets are subject to risks.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.