Muthoot Finance share price crashes over 11% after Q1 results 2026. Do you own?

Muthoot Finance share price tumbled more than 11% on Monday, 3 August, despite the company reporting robust Q1 FY27 earnings. The gold loan-focused NBFC posted a 43% year-on-year rise in consolidated net profit to ₹2,825 crore for the June quarter, compared with ₹1,974 crore in the year-ago period.

According to the company's regulatory filing, total income increased to ₹8,695 crore in Q1 FY27 from ₹6,485 crore a year earlier. Total expenses also rose to ₹4,898 crore, compared with ₹3,812 crore in the corresponding quarter last year.

The company's loan assets under management (AUM) grew 43% year-on-year to ₹1.92 lakh crore, up from ₹1.34 lakh crore in the same period last year.

The board also approved the appointment of Alexander George as Managing Director, effective 1 October 2026.

In an interview with CNBC-TV18, the management reiterated its positive outlook, stating that loan yields are expected to stabilise at 18-18.5%, while net interest margin (NIM) guidance has been maintained at 10.5-11%. It also indicated that the FY27 AUM growth guidance of 15% could be revised upward after the second quarter if business momentum remains strong.

Nuvama Institutional Equities maintained its 'Hold' rating on Muthoot Finance, with a revised target price of ₹3,300 (from ₹3,325), citing a softer-than-expected June quarter.

The brokerage noted that standalone AUM growth moderated to 43% year-on-year and 6% quarter-on-quarter (consolidated AUM grew 43% YoY and 5% QoQ), reflecting the impact of declining gold prices. It added that the net interest margin (NIM) fell 297 basis points sequentially to 10.4%, resulting in a 17% miss in profit after tax, while Stage-3 assets improved 11 basis points QoQ to 2.5%.

Nuvama cautioned that increasing competition, regulatory changes, and falling gold prices could weigh on growth and profitability. It expects standalone return on assets (RoA) to normalise to 4.8%-5.3% from the recent peak of 6.7%, driven by slower growth and margin moderation.

Muthoot Finance share price today

Muthoot Finance share price today opened at ₹2,852 apiece on the BSE, the stock touched an intraday high of ₹2,950.60 per share, and an intraday low of ₹2,767 per share.

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said Muthoot Finance witnessed a sharp sell-off after its June quarter earnings, hitting an intraday low of ₹2,671 before strong buying interest at lower levels triggered a sharp recovery.

He noted that the stock managed to reclaim its 100-week exponential moving average (EMA) during the rebound. However, Shah said the post-results gap-down has weakened the overall technical setup, with the stock now trading below its key short- and medium-term moving averages. He added that the ADX indicator shows DI- crossing above DI+, indicating a bearish bias, while the Relative Strength Index (RSI) has slipped below the 40 mark, reflecting weakening momentum.

According to Shah, the ₹2,930-2,950 zone is likely to act as the immediate resistance, while ₹2,820-2,800 remains a crucial support band. A sustained move above ₹2,950 could pave the way for an extended pullback in the coming sessions.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.