Muthoot Finance, one of India’s largest gold loan companies, has delivered impressive results for the fourth quarter (Q4) of FY25. Despite the broader market volatility, the company has reported a remarkable growth in profit, marking a strong performance that continues its upward trajectory.
However, there has been some fluctuation in its share price due to external factors, like changes in the Reserve Bank of India’s (RBI) gold loan guidelines. Let’s dive into the numbers, the key highlights, and the broader implications for Muthoot Finance’s future.
Muthoot Finance Q4 financial performance
For the fourth quarter of FY25, Muthoot Finance reported a 22% YoY increase in its consolidated profit after tax (PAT), reaching ₹1,444 crore, up from ₹1,182 crore in Q4 FY24. The company’s standalone PAT for Q4 also rose by an impressive 43%, to ₹1,508 crore, compared to ₹1,056 crore in the same quarter of the previous year.
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| Metric | Q4 FY25 | Q4 FY24 | YoY Growth |
| Consolidated PAT | ₹1,444 crore | ₹1,182 crore | +22% |
| Standalone PAT | ₹1,508 crore | ₹1,056 crore | +43% |
| Loan AUM (Consolidated) | ₹1.22 lakh crore | ₹89,079 crore | +37% |
| Gold Loan AUM | ₹1.02 lakh crore | ₹72,276 crore | +41% |
The company has also crossed a major milestone by reaching an all-time high in its gold loan AUM, which hit ₹1,02,956 crore, reflecting a 41% increase compared to the previous year. The rise in AUM is primarily driven by robust gold loan growth, which continues to be the backbone of Muthoot Finance’s business.
Muthoot Finance’s full-year performance
For the full financial year 2024-25 (FY25), Muthoot Finance has reported a 20% increase in its consolidated PAT, reaching ₹5,352 crore, compared to ₹4,468 crore in FY24. The standalone PAT for the year was ₹5,201 crore, marking a 28% YoY growth from ₹4,050 crore in FY24.
The company’s annual loan AUM also surged by 37%, reaching ₹1.22 lakh crore. This growth is largely attributed to the strong demand for gold loans and the company’s continued focus on expanding its lending portfolio and increasing its customer base.
| Metric | FY25 | FY24 | YoY Growth |
| Consolidated PAT | ₹5,352 crore | ₹4,468 crore | +20% |
| Standalone PAT | ₹5,201 crore | ₹4,050 crore | +28% |
| Loan AUM (Consolidated) | ₹1.22 lakh crore | ₹89,079 crore | +37% |
| Gold Loan AUM | ₹1.02 lakh crore | ₹72,276 crore | +41% |
| Interest Income | ₹15,586 crore | ₹13,270 crore | +17% |
The company also posted a record interest income of ₹15,586 crore, reflecting strong repayment trends and growing demand for gold-backed loans.
Key operational metrics
Muthoot Finance has expanded its branch network by 13% YoY, reaching 7,391 branches in FY25, up from 6,541 branches in FY24. This expansion is a clear indication of the company’s commitment to increasing its customer reach and strengthening its position in the gold loan market.
Additionally, Muthoot Finance disbursed ₹21,888 crore in gold loans to nearly 18 lakh new customers during FY25, marking another record high for the company. The growth in both loan disbursements and new customers is a testament to the company’s strong market presence.
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Dividend declared
To celebrate its successful financial performance, Muthoot Finance declared its highest-ever dividend of ₹26 per equity share, representing 260% on the face value of ₹10 per share. This is a significant reward for the company’s shareholders, reflecting the strong earnings and cash flow generated during the year.
Concerns: RBI’s draft LTV norms
Despite the stellar performance, Muthoot Finance’s stock price fell 5% on May 15, 2025, amid concerns about the Reserve Bank of India’s (RBI) draft loan-to-value (LTV) guidelines. The new draft guidelines could potentially restrict the maximum loan amount that can be disbursed against gold, which might impact the growth of the gold loan portfolio for Muthoot Finance and its peers.
As a result, the stock came under pressure, with investors reacting to the uncertainty around the final guidelines.
According to analysts at Motilal Oswal, “Until the final gold-lending guidelines are published by the RBI, the growth outlook on gold loans will remain uncertain.” Other analysts, however, remain optimistic, citing the favourable demand outlook for gold loans.
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Muthoot Finance’s future outlook
Despite the near-term uncertainty regarding the LTV norms, Muthoot Finance is well-positioned for stable growth in the medium term. The company has shown consistent performance in expanding its loan portfolio, increasing AUM, and reaching new milestones in both loan disbursements and customer additions.
However, the concerns over the RBI’s draft LTV norms could pose challenges in the short term.
Overall, Muthoot Finance remains a strong player in the gold loan industry, with a solid track record of growth and profitability. Investors should keep an eye on the developments surrounding the RBI’s final guidelines and monitor the company’s ability to adapt to potential regulatory changes.
