Muthoot Finance Shares Surge 10% to 52-Week High on Stellar Q2 Results, Gold Rally

Shares of

ce Ltd soared nearly 10% to hit a fresh 52-week high of Rs 3,730.30 on the BSE on Friday, locking in the upper circuit, as robust gold loan demand amid skyrocketing gold prices propelled the company to an 87.4% year-on-year jump in Q2FY26 net profit. The non-banking financial company (NBFC) reported a standalone net profit of Rs 2,345 crore for the July-September quarter of FY26, a sharp rise from Rs 1,251 crore in the same period last year. Net Interest Income (NII) surged 58.5% to Rs 3,991 crore, up from Rs 2,518 crore a year ago, reflecting strong lending momentum in its core gold loan business. The rally in gold prices, which have scaled multi-month highs amid global uncertainties and festive demand in India, has boosted collateral values and borrower confidence, driving healthy disbursement growth for gold loan financiers. Adding to the positive sentiment, Muthoot Finance’s board approved a plan to raise up to Rs 35,000 crore through redeemable Non-Convertible Debentures (NCDs) via private placement in multiple tranches. The fundraising will support business expansion and maintain healthy liquidity buffers. The upbeat performance had a spillover effect on peers, with Manappuram Finance and IIFL Finance shares gaining around 4% each during the session. Analysts remain bullish on Muthoot Finance, citing sustained gold price strength, improving asset quality, and steady loan book growth. The company’s focus on digital initiatives and branch expansion continues to strengthen its market leadership in the organized gold loan segment. With gold prices showing no signs of cooling and festive lending picking up pace, Muthoot Finance appears well-positioned for sustained earnings momentum in the coming quarters.