The Muthoot Finance share price was under sharp pressure in the stock market today, falling nearly 10% during intraday trade on February 13.
The fall came even as the company posted a strong set of Q3 numbers. Profit surged. Net interest income expanded. Loan growth remained robust.
Yet, despite the upbeat earnings, the market reaction was negative.
This is how markets behave. Numbers tell one story. Prices tell another.
Let’s break down what happened — clearly, simply, and without noise.
Market Performance: Muthoot Finance Share Price in Focus
The Muthoot Finance share price opened at ₹3,927 on the BSE.
During the day:
- Intraday High: ₹4,000
- Intraday Low: ₹3,576.60
- Fall: Nearly 10% during trade
In the broader stock market today, the stock saw heavy volatility immediately after opening. There was visible selling pressure from early trade.
Even with strong Q3 results announced a day earlier, the price action showed caution among investors.
Price movements often react not just to growth — but to positioning and expectations already built into the stock.
Main News: Q3 FY26 Earnings Deliver Strong Growth
Muthoot Finance announced its third-quarter results for FY26 on February 12.
The headline numbers were strong.
Net Profit
- Q3 FY26 Net Profit: ₹2,656 crore
- Q3 FY25 Net Profit: ₹1,363 crore
- Year-on-Year Growth: 94.9%
Nearly doubling profit in one year is not a small move.
For the first nine months of FY26:
- PAT: ₹7,209 crore
- Previous Year (9M): ₹3,908 crore
- YoY Growth: 84%
This shows sustained earnings momentum through the year.
Net Interest Income (NII) Expansion
Revenue growth was equally strong on the operating side.
Net Interest Income
- Q3 FY26 NII: ₹4,467 crore
- Q3 FY25 NII: ₹2,721 crore
- Growth: 64% YoY
This sharp rise in NII signals higher interest earnings from its gold loan book.
On a quarterly comparison:
- Total NII Growth (QoQ): 12%
- Core NII Growth (QoQ): 4%
Interest recoveries contributed meaningfully to NII growth during the quarter.
Assets Under Management (AUM) — The Growth Engine
For gold loan NBFCs, AUM growth tells the real story.
Consolidated Loan AUM
- As of December 31, 2025: ₹1,64,720 crore
- December 2024: ₹1,11,308 crore
- YoY Growth: 48%
That’s a sharp increase of over ₹53,000 crore year-on-year.
Quarter-on-quarter movement was also solid.
- September 2025 AUM: ₹1,47,673 crore
- December 2025 AUM: ₹1,64,720 crore
- QoQ Increase: ₹17,046 crore
- QoQ Growth: 12%
Loan growth remained strong both yearly and sequentially.
Loan Growth Details
More granular numbers show:
- Loan Growth YoY: 50%–51%
- Loan Growth QoQ: 11%–12%
Sequential acceleration in AUM indicates steady demand in the gold loan segment.
However, there was mention of lower loan-to-value ratios (LTV) and quarter-on-quarter decline in gold tonnage.
Despite that, overall AUM growth stayed robust.
Earnings Drivers: What Boosted Q3 Numbers?
The earnings jump was not random.
Key contributors included:
- Higher gold loan growth
- Strong interest income
- Interest recoveries contributing to NII
- Stable operating expenses (adjusted for one-off impact)
There was also a one-time labour code-related expense impact of ₹480 million. Adjusted for this, operating expenses remained flat sequentially.
That reflects operational stability during a high-growth quarter.
First Nine Months Performance Snapshot
Let’s step back and view FY26 so far.
9M FY26 Numbers
- PAT: ₹7,209 crore
- 9M FY25 PAT: ₹3,908 crore
- Growth: 84% YoY
This isn’t just a one-quarter story.
The cumulative performance shows consistent expansion across quarters.
Interest Recoveries Impact
Recoveries played a role in boosting reported numbers.
- Recovery Contribution to NII (Q3): ₹6.2 billion
- Previous Quarter: ₹3 billion
That’s more than double quarter-on-quarter.
Recoveries often amplify profitability during stronger operating periods.
Operating Cost Structure
The business operates with relatively high fixed costs.
During Q3:
- Total operating expenses remained stable sequentially
- Adjusted for ₹480 million one-off labour code impact
Flat operating cost alongside rising revenue indicates operating leverage.
In simple terms — revenue grew faster than expenses.
Stock Market Reaction: Why the Fall Despite Growth?
This is the key question investors asked in the stock market today.
When profits jump 94.9% and AUM grows 48%, why does the Muthoot Finance share price fall 10%?
Markets often react to:
- Expectations already priced in
- Short-term positioning
- Profit booking after a run-up
- Broader sentiment shifts
Numbers were strong. But price movements reflected short-term caution.
That’s how markets balance emotion and earnings.
Business Overview: Gold Loan Focus
Muthoot Finance remains a leading gold loan-focused NBFC.
Its growth comes primarily from:
- Retail gold loans
- Expanding AUM base
- Consistent interest income
Subsidiaries are also contributing more to gold loan operations.
In Q3, subsidiary contribution to gold loans increased further.
Key Financial Snapshot (Q3 FY26)
Here’s a quick structured look:
Profitability
- Net Profit: ₹2,656 crore
- YoY Growth: 94.9%
- 9M PAT: ₹7,209 crore
- 9M Growth: 84%
Revenue
- NII: ₹4,467 crore
- YoY Growth: 64%
- QoQ Total NII Growth: 12%
Growth Metrics
- AUM: ₹1,64,720 crore
- YoY Growth: 48%
- QoQ AUM Growth: 12%
- Sequential AUM Increase: ₹17,046 crore
Recoveries
- ₹6.2 billion recovery contribution
- ₹3 billion previous quarter
Numbers remained strong across major parameters.
What This Means for Stock Market Today?
The Muthoot Finance share price decline became one of the talking points in the stock market today.
The earnings showed expansion.
The stock showed pressure.
Short-term volatility does not erase long-term financial performance.
It simply reflects how sentiment shifts faster than fundamentals.
Summary of the Article
- Muthoot Finance share price fell nearly 10% intraday.
- Opened at ₹3,927; hit low of ₹3,576.60.
- Q3 FY26 profit rose 94.9% YoY to ₹2,656 crore.
- Net Interest Income surged 64% YoY to ₹4,467 crore.
- AUM stood at ₹1,64,720 crore, up 48% YoY.
- QoQ AUM growth was 12%.
- 9M FY26 PAT increased 84% to ₹7,209 crore.
- Recoveries contribution to NII rose to ₹6.2 billion.
- Operating expenses remained stable sequentially after adjusting ₹480 million one-off impact.
The story is clear.
Strong earnings.
Sharp price reaction.
Heightened market activity.
In the stock market today, price and performance did not move in the same direction — but the financial data remains solid on paper.
Investors tracking the Muthoot Finance share price will now closely watch how the stock behaves after this sharp correction and how future quarterly numbers sustain this growth trajectory.
Source: Livemint
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