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Muthoot Finance shares plunge after June quarter profit beat
The gold-loan NBFC reported Q1 FY27 net profit growth of 43% to ₹2,825 crore, but profit after tax fell short of analyst expectations as net interest margin declined sequentially to 10.4%.
Muthoot Finance shares fell more than 11% on Monday, August 3, after the company posted Q1 FY27 results, even as consolidated net profit rose 43% year over year to ₹2,825 crore for the June quarter. The NBFC said total income increased to ₹8,695 crore in Q1 FY27 from ₹6,485 crore a year earlier. It also reported higher total expenses at ₹4,898 crore, up from ₹3,812 crore in the corresponding quarter. Loan assets under management, or AUM, grew 43% year over year to ₹1.92 lakh crore, up from ₹1.34 lakh crore a year earlier. The board also approved the appointment of Alexander George as Managing Director, effective October 1, 2026. In management commentary cited by LiveMint, loan yields are expected to stabilize at 18% to 18.5%, and NIM guidance was maintained at 10.5% to 11%. The article also notes NIM fell 297 basis points sequentially to 10.4%, contributing to a 17% miss in profit after tax, while Nuvama Institutional Equities kept a Hold rating and revised its target price to ₹3,300 from ₹3,325.