Muthoot Finance Profit Jumps 39% in Q1; Shares Slump 14%

Mumbai, August 3: Muthoot Finance shares fell sharply on Monday, tumbling as much as 14 per cent in intra-day trade, after the country’s largest gold-loan financier posted a 38.8 per cent year-on-year jump in consolidated profit for the June quarter, and announced a sweeping leadership reshuffle.

The stock opened 7.81 per cent lower at Rs 2,876.00 against its previous close of Rs 3,119.60, and briefly touched an intra-day high of Rs 2,928.00 before selling pressure took hold. The counter was seen changing hands at Rs 2,794.90 apiece at one stage during the morning session, before sliding further to an intra-day low of Rs 2,671.00. At last update, MUTHOOTFIN was trading at Rs 2,832.30, down Rs 287.30 or 9.21 per cent, shortly after it changed hands at Rs 2,833.00, down Rs 286.60 or 9.19 per cent. The volume weighted average price for the day was Rs 2,814.61. 

The stock’s swings played out over the course of the morning session, between 9:00 am and 10:45 am, as it slipped from opening levels near Rs 2,876 down to its session low, before clawing back a large part of the losses to trade closer to Rs 2,830 levels by mid-morning. 

By last check, orders on the exchange for MUTHOOTFIN were favouring the buyers, with 55.99 per cent of the total outstanding orders or 2,92,872 shares on the bid, compared with 44.01 per cent or 2,30,165 shares on the offer side, moments after displaying a similar pattern of 52.49 per cent or 2,83,158 shares on the buy-side against 47.51 per cent or 2,56,287 shares on the sell-side. 

Muthoot Finance Shares Trend: Last Week 

Zooming out to view the stock’s performance over the last week, it is seen that after starting at around Rs 3,010 levels on Monday, the stock held largely steady through Tuesday, before easing marginally to end Wednesday and Thursday near Rs 3,000 levels, the week’s low. It then rallied sharply on Friday to close the week at Rs 3,119.60. With Monday’s post-results crash, Muthoot Finance has given up the entire gain it made during the week. 

Muthoot Finance Q1FY27 Profit Rises 39% to Rs 2,799 Crore 

Gold loan non-banking financial company Muthoot Finance on Saturday reported a 38.8 per cent year-on-year rise in consolidated profit to Rs 2,799 crore for the quarter ended June, against Rs 2,016 crore in the year-ago period. The company’s total income for the quarter grew 34.5 per cent to Rs 8,695 crore, compared with Rs 6,466 crore a year earlier. Muthoot Finance is one of India’s largest gold-loan non-banking financial companies, extending loans against gold ornaments and jewellery to customers across the country. 

Leadership Transition at the Top 

Alongside its earnings, the company’s board recommended the appointment of Alexander George as managing director, with effect from October 1, 2026. The appointment is subject to shareholders’ approval at the company’s upcoming annual general meeting, the company said. The board also cleared the proposal for the elevation of K R Bijimon to chief executive officer, effective the same date. 

Current managing director George Alexander Muthoot will move into the role of executive vice chairman. In his new capacity, he is expected to continue guiding the organisation, mentor the next generation of leadership, and provide strategic direction as the company enters its next phase of growth, the company said. The leadership transition marks a generational shift at the top of the company, even as it hands day-to-day charge to a new managing director and chief executive officer from October. 

Separately, the board approved an additional investment of Rs 32 crore in Asia Asset Finance PLC, as part of a rights issue currently being carried out by the Sri Lanka-based non-bank lender. 

Source: 

• https://www.nseindia.com/get-quote/equity/MUTHOOTFIN/Muthoot-Finance-Limited