Muthoot Finance profit jumps 135.29% as margin reaches 83.55%
Revenue grew 65.23% year on year while expenses fell 2.97%; the stock fell 6.22% on the first trading day.
Filed 14 May 2026, 20:00 IST · after market close · Muthoot Finance Ltd (MUTHOOTFIN)
Key takeaways
- Consolidated net profit rose 135.29% year on year, supported by revenue growth of +65.23%.
- Operating margin expanded 11.56 percentage points year on year to 83.55% as expenses fell 2.97%.
- The stock fell 6.22% on the first trading day, close to its 6.89% median absolute move after the past eight results.
Price around the results
Revenue growth drove a sharp rise in consolidated profit
Revenue grew 65.23% year on year and 13.45% sequentially, while expenses declined 2.97% year on year and rose 4.83% sequentially. That operating leverage helped consolidated net profit rise 135.29% year on year and 20.33% from Q3FY26. Interest expense also increased, by 49.43% year on year and 8.09% sequentially, limiting the conversion of operating gains into pre-tax profit.
Margin expansion came from costs lagging revenue
Operating margin widened 11.56 percentage points year on year because revenue grew while expenses fell, and it increased another 1.35 percentage points sequentially as revenue growth of +13.45% exceeded expense growth of +4.83%. The tax rate was 0.62 percentage points higher year on year but 0.24 percentage points lower sequentially. Other income contributed only 0.06% of pre-tax profit, so the earnings increase was not materially supported by non-operating income.
Margin has risen for four straight quarters after the FY25 dip
Operating margin increased from 71.99% in Q4FY25 to 77.65% in Q1FY26, 79.68% in Q2FY26, 82.20% in Q3FY26 and 83.55% in Q4FY26. Among 52 Financial Services peers that had reported the same quarter, Muthoot Finance's margin was 24.14 percentage points above the 59.41% sector median.
Presentation highlights branch expansion and a shift in subsidiary lending
The presentation said new branch expansion is part of the pan-India growth opportunity, and reported that Muthoot Money is entering underserved geographies selectively while avoiding overlap within the group. It also said Muthoot Money has moved away from commercial vehicle and equipment financing to improve efficiency, margins and risk control. The presentation described Muthoot Homefin's hub-and-spoke structure, with centralised processing in Mumbai, as its approach to scaling services.
The initial fall was ordinary, but the later decline was larger
The stock fell 6.22% on the first trading day and was down 6.64% after five trading days, broadly in line with the 6.89% median absolute move across the past eight results, when five reactions were positive and three were negative. The decline extended to 16.04% after 15 trading days, making the subsequent reaction materially larger than the typical initial move.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹9,289 cr | ₹8,188 cr | +13.45% | +65.23% |
| Other income | ₹3 cr | ₹52 cr | -94.87% | -91.50% |
| Expenses | ₹1,528 cr | ₹1,458 cr | +4.83% | -2.97% |
| Operating profit | ₹7,761 cr | ₹6,730 cr | +15.32% | +91.77% |
| Operating margin (%) | 83.55% | 82.20% | — | — |
| Interest | ₹3,155 cr | ₹2,919 cr | +8.09% | +49.43% |
| Depreciation | ₹24 cr | ₹40 cr | -39.53% | -29.47% |
| Profit before tax | ₹4,584 cr | ₹3,822 cr | +19.93% | +137.25% |
| Tax | ₹1,187 cr | ₹999 cr | +18.79% | +143.04% |
| Net profit | ₹3,397 cr | ₹2,823 cr | +20.33% | +135.29% |
| EPS (₹) | ₹83.43 | ₹69.84 | +19.46% | +126.65% |
Operating margin of 83.55% compares with a Financial Services sector median of 59.41% across 52 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -6.22% | -6.03% |
| Next session | -6.80% | — |
| 5 sessions | -6.64% | -6.76% |
| 15 sessions | -16.04% | — |
| 30 sessions | -15.12% | — |
Volume on the results session was 8.68× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The company identifies new branch expansions as part of the market's pan-India growth opportunity.
- Muthoot Money is expanding selectively into underserved geographies while avoiding network overlap within the Group.
New initiatives
- Muthoot Money shifted away from commercial vehicle and equipment financing to optimise efficiency, improve margins and mitigate risk.
- Muthoot Homefin uses a hub-and-spoke model with centralised processing at its Mumbai corporate office to scale services efficiently.
Competition
- The company reports that it is ranked number one in gold loans.
Problems & risks
- Muthoot Money moved away from commercial vehicle and equipment financing to mitigate risk.
What to watch
- Whether consolidated operating margin holds above 83.55%.
- Whether revenue growth remains ahead of expense growth after +13.45% and +4.83% sequentially, respectively.
- Whether interest expense growth moderates from +8.09% sequentially.