Muthoot Finance Shares in Focus; Raises AUM Growth Guidance to 40% for FY25

Muthoot Finance has revised its asset under management (AUM) growth projection for FY25, increasing its guidance to 40% from the earlier estimate of 25-30%. This adjustment reflects the company’s strong performance and increasing demand for gold loans.

Strong AUM Growth in FY25

The company has already achieved 38% AUM growth and expects to close the financial year at 40%. As of the December quarter, gold loan AUM stood at ₹92,964 crore, marking a 34.3% year-on-year rise and a 7.9% sequential increase.

The overall AUM, including non-gold segments, reached ₹97,487 crore, registering a 37% year-on-year growth.

Muthoot Finance informed the exchanges on March 14 that its gold loan AUM has surpassed ₹1 lakh crore.

The gold loan business remains the primary driver of this expansion, with demand coming from both rural and urban markets.

Guidance for FY26 and Growth Outlook

For FY26, Muthoot Finance has set a conservative AUM growth target of 15% but remains optimistic about surpassing this figure. Net interest margins (NIMs) are expected to be in the range of 10-11% for FY25 and 10-12% for FY26.

While the company is exercising caution in its microfinance portfolio due to short-term pressures, it continues to see significant potential in the gold loan segment.

The management remains confident in its ability to sustain growth, stating that competitive pricing and increasing customer demand will support business expansion.

In an interview with CNBC-TV18, Managing Director George Alexander Muthoot reiterated the company’s strong growth momentum, emphasising the rising preference for gold loans amid challenges in securing microfinance and personal loans.

Share Price Performance

Muthoot Finance Limited’s stock was trading at ₹2,387.35, reflecting a decline of ₹29.10 (-1.20%) from the previous close of ₹2,416.45. The stock opened at ₹2,425.35, reaching an intraday high of ₹2,435.40 and a low of ₹2,379.20.

Conclusion

Muthoot Finance’s upward revision of its AUM growth guidance for FY25 highlights the company’s strong performance, driven primarily by the increasing demand for gold loans. As the gold loan segment continues to expand, Muthoot Finance is well-positioned to capitalise on market opportunities while maintaining stable margins and long-term growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.