This company gives loans against gold... 95% profit increase, now focusing on stocks
Muthoot Finance reports a remarkable 95% year-on-year profit increase as investors turn their attention to its shares.
Muthoot Finance, a non-banking finance company (NBFC) in India, has reported a staggering 95% increase in its net profit for the quarter ending December 31, 2025, achieving a net profit of ₹2,656.42 crores. This marks a significant rise from ₹1,363.09 crores in the same quarter last year, highlighting the company's strong performance in the gold loan sector amidst favorable market conditions. The profit spike has garnered attention from investors, with the company's share price rising to ₹4,070, reflecting an increase of 3.48% on the market.
In addition to the impressive profit growth, Muthoot Finance has also seen a 64% surge in its net interest income, climbing to ₹4,467.11 crores compared to ₹2,721.37 crores during the previous year. This increase contributes significantly to the company's overall income, which rose to ₹7,262.94 crores from ₹4,431.16 crores during the same period last year. Such strong financial results underscore the company's robust business model focusing on gold loans, which have been increasingly popular among consumers seeking financial flexibility.
The substantial increase in assets under management (AUM) further illustrates Muthoot Finance's growth trajectory, indicating a successful strategy in expanding its loan portfolio. As more investors focus on the company's stocks, Muthoot Finance is positioned to continue leveraging the demand for gold loans, potentially enhancing its market presence in the competitive financial services landscape in India.