Muthoot Finance Reports Robust Q4 FY25 Results; Analysts Divided on Stock Prospects
Muthoot Finance announced strong Q4 FY25 results with net profit rising 43% to ₹15.10 billion and revenue increasing 42.3% to ₹48.54 billion year-over-year. Asset quality improved with GNPA decreasing to 1.17% from 1.88% in FY24. The company maintained its 15% gold loan growth guidance for FY26. Quarterly performance showed consistent growth across key metrics. Analysts have mixed views on the stock's prospects, with some bullish and others cautious due to potential gold price fluctuations. Management expressed confidence in the company's market position and downplayed the impact of recent RBI guidelines on established players.

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Muthoot Finance , a leading non-banking financial company (NBFC) specializing in gold loans, has announced its fourth-quarter financial results for the fiscal year 2025, showcasing significant growth across key financial metrics. The company has also maintained its 15% gold loan growth guidance for FY26, sparking diverse reactions from analysts.
Financial Highlights
- Net Profit: Soared to ₹15.10 billion, marking a substantial 43% increase from ₹10.56 billion in the previous year.
- Revenue: Rose to ₹48.54 billion, up 42.3% from ₹34.10 billion in the corresponding quarter last year.
- Asset Quality: Improved significantly with Gross Non-Performing Assets (GNPA) decreasing to 1.17% in FY25 from 1.88% in FY24.
- Net Non-Performing Assets (NNPA): Reduced to 0.46% from 0.57% year-over-year.
Quarterly Performance Analysis
The company's quarterly income statement reveals consistent growth:
Metric (in ₹ crore) | Q4 FY25 | Q3 FY25 | YoY Change |
---|---|---|---|
Revenue | 5,221.70 | 4,957.40 | 5.33% |
EBITDA | 3,816.50 | 3,633.70 | 5.03% |
Net Profit | 1,391.60 | 1,321.20 | 5.33% |
EPS (in ₹) | 35.36 | 31.67 | 11.65% |
Year-on-Year Growth
Comparing the full fiscal year 2025 with the previous year:
Metric (in ₹ crore) | FY25 | FY24 | YoY Change |
---|---|---|---|
Revenue | 15,162.70 | 11,975.00 | 26.62% |
EBITDA | 11,518.70 | 9,210.10 | 25.07% |
Net Profit | 4,467.60 | 3,669.80 | 21.74% |
EPS (in ₹) | 107.72 | 89.99 | 19.70% |
Operational Efficiency
The company's Operating Profit Margin (OPM) for Q4 FY25 stood at 72.92%, indicating strong operational efficiency despite a slight decrease from 77.18% in the same quarter of the previous year.
Analyst Perspectives
Following the Q4 results announcement, analysts have expressed divergent views on Muthoot Finance's stock prospects:
- Bullish Outlook: Jefferies and Bernstein maintain a positive stance, citing the company's improved asset quality and growth potential.
- Neutral Stance: Morgan Stanley remains cautious, highlighting potential risks associated with gold price fluctuations.
Management Commentary
Muthoot Finance's management has expressed confidence in the company's market position, noting an increase in market share. They also commented on recent RBI guidelines, suggesting that these regulations are primarily aimed at newer entrants in the gold loan market rather than established players like Muthoot Finance.
Conclusion
Muthoot Finance's Q4 FY25 results demonstrate the company's resilience and growth potential in the NBFC sector. The significant improvements in net profit, revenue, and asset quality reflect the company's strong business model and effective management of its loan portfolio. While analysts remain divided on the stock's future prospects, the company's maintained growth guidance and positive outlook on market share suggest confidence in its strategic direction. As Muthoot Finance continues to navigate the dynamic financial landscape, investors and stakeholders will likely keep a close watch on its future performance, strategic initiatives, and ability to manage potential risks associated with gold price movements.
Historical Stock Returns for Muthoot Finance
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-0.04% | -1.85% | -1.16% | +19.65% | +40.06% | +103.63% |