Muthoot Capital Services Ltd. (MUTHOOTCAP) AI Stock Analysis

• Market Cap: ₹3.23B
• Dividend Yield: N/A
• Average Volume (3M): 3.06K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 1.26
• Revenue Growth: 40.61%
• EPS Growth: -64.65%
• Country: IN
• Employees: 1,995
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 4.65
• Shares Outstanding: 16,447,533
• 10 Day Avg. Volume: 1,400
• 30 Day Avg. Volume: 3,063
• PEG Ratio: -0.14
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.89
• P/FCF Ratio: -0.37
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: ₹185.00 ▼(-32.96% Downside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is driven down primarily by weak financial performance (large revenue decline, high leverage, and negative cash flows) and bearish technicals (price below all key moving averages with negative MACD). A mid-range P/E provides some support, but not enough to offset the fundamental and trend risks.

Positive Factors

Profitability Margins

Reported margins are robust across the income statement, indicating the core lending economics generate healthy spreads and operating profitability. Sustained margin levels provide a durable cushion to absorb credit costs, support reinvestment, and underpin return generation as scale returns.

Distribution Footprint

A branch-based network plus channel partners creates a durable origination engine for vehicle finance, enabling deep local reach and consistent access to retail borrowers. This diversified distribution reduces single-channel reliance and supports repeated loan flow and customer acquisition over the medium term.

Predictable Core Revenue Model

The business captures predictable interest income and incremental fee/ancillary revenues from loan origination and servicing. This mix provides recurring, scalable revenue tied to the loan book, enabling steady cash generation potential if asset growth and funding stability are restored.

Negative Factors

High Financial Leverage

Material leverage (debt/equity ~4.27) raises financial fragility: borrowing dependence amplifies earnings volatility and increases sensitivity to rising funding costs. High leverage constrains strategic flexibility and heightens refinancing risk in stressed market conditions over the medium term.

Weak Cash Generation

Negative operating and free cash flows indicate the company struggles to convert accounting profits into cash. Poor cash conversion forces greater reliance on external funding for operations and growth, elevating refinancing and liquidity risk and limiting capacity to rebuild capital buffers.

Significant Revenue Decline

A steep reported revenue contraction (-46.31%) undermines scale benefits and pressures profitability sustainability. Lower top-line reduces retained earnings and contributed to a drop in ROE, constraining the firm's ability to absorb credit costs, invest in growth, or restore balance-sheet strength.

Muthoot Capital Services Ltd. Business Overview & Revenue Model

Company Description

Muthoot Capital Services Limited, a non-banking finance company (NBFC), provides fund and non-fund based financial services. The company offers two wheeler, used car, secured business, and loyalty loans; short-term and long-term deposit plans; and subordinated debts, as well as advisory services. It is also involved in buying loan portfolio of other NBFCs/micro finance companies. The company serves retail, corporate, and institutional customers through a network of branches in India. Muthoot Capital Services Limited was incorporated in 1994 and is based in Kochi, India.

How the Company Makes Money

Muthoot Capital Services Ltd. makes money primarily through interest income earned on its loan portfolio. The core revenue model is to raise funds (typically via borrowings and other funding sources available to NBFCs) and lend those funds to customers at a higher effective yield, earning a net interest margin after accounting for its cost of funds. In addition to interest income, the company typically earns fee-based income associated with originating and servicing loans (such as processing or documentation charges) and may earn income connected to ancillary products linked to lending (for example, commissions related to distributing third-party products tied to the loan lifecycle); if specific line-item details are not disclosed, they are not determinable here. Key factors that influence earnings include loan disbursement volumes (growth in assets under management), portfolio yield, credit performance (delinquencies and credit losses), operating efficiency (branch and collection costs), and funding availability/cost. Information on significant partnerships contributing to earnings is null.

Muthoot Capital Services Ltd. Financial Statement Overview

Summary

Financial health is pressured by sharply declining revenue (-46.31%), high leverage (debt-to-equity 4.27), and weak/negative operating and free cash flows. Profitability margins remain relatively healthy, but the revenue drop, reduced ROE (6.95%), and cash-flow strain keep the score low.

Income Statement

Muthoot Capital Services Ltd. has experienced a significant decline in revenue, with a revenue growth rate of -46.31% in the most recent year. The gross profit margin remains strong at 100%, but the net profit margin has decreased to 19.65%. The EBIT and EBITDA margins are relatively healthy at 34.28% and 36.33%, respectively. However, the declining revenue trend and reduced profitability are concerning.

Balance Sheet

The company has a high debt-to-equity ratio of 4.27, indicating significant leverage, which poses a risk in terms of financial stability. The return on equity has decreased to 6.95%, reflecting reduced profitability for shareholders. The equity ratio stands at 18.36%, suggesting a moderate level of equity financing relative to total assets.

Cash Flow

The cash flow situation is challenging, with negative operating and free cash flows. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is -39.29, indicating cash flow issues. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow covers net income, but the overall cash flow position is weak.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.55B	4.63B	3.79B	4.30B	3.97B	4.93B
Gross Profit	2.98B	2.52B	1.73B	2.09B	1.88B	2.73B
EBITDA	1.89B	1.86B	2.37B	1.69B	-1.64B	1.52B
Net Income	171.31M	457.46M	1.23B	786.79M	-1.62B	514.60M
Balance Sheet
Total Assets	37.31B	35.85B	23.14B	24.35B	20.99B	25.60B
Cash, Cash Equivalents and Short-Term Investments	3.06B	4.00B	3.21B	5.50B	3.34B	6.05B
Total Debt	29.49B	28.12B	16.27B	18.54B	15.65B	18.92B
Total Liabilities	30.74B	29.26B	17.02B	19.46B	16.87B	20.00B
Stockholders Equity	6.57B	6.58B	6.12B	4.89B	4.11B	5.60B
Cash Flow
Free Cash Flow	-2.46B	-11.01B	-872.68M	-470.00M	731.70M	6.69B
Operating Cash Flow	-2.46B	-10.97B	-824.88M	-464.12M	732.90M	6.70B
Investing Cash Flow	-63.99M	-76.50M	-630.82M	-165.99M	-93.90M	13.20M
Financing Cash Flow	1.36B	12.20B	-2.51B	2.72B	-3.11B	-4.16B

Muthoot Capital Services Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 275.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MUTHOOTCAP, the sentiment is Negative. The current price of 275.95 is above the 20-day moving average (MA) of 211.08, above the 50-day MA of 231.50, and above the 200-day MA of 274.13, indicating a bearish trend. The MACD of -10.82 indicates Positive momentum. The RSI at 34.12 is Neutral, neither overbought nor oversold. The STOCH value of 23.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MUTHOOTCAP.

Muthoot Capital Services Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MUTHOOTFIN	66 Neutral	₹1.33T	13.64	―	0.68%	41.32%	56.12%
PAISALO	65 Neutral	₹31.82B	12.44	―	0.29%	11.75%	-6.52%
INDOSTAR	50 Neutral	₹32.10B	98.87	―	―	-5.36%	469.19%
MANAPPURAM	49 Neutral	₹219.40B	27.09	―	0.80%	-3.68%	-80.12%
SPANDANA	48 Neutral	₹18.39B	-5.67	―	―	-45.13%	-1646.01%
MUTHOOTCAP	43 Neutral	₹3.23B	14.73	―	―	40.61%	-64.65%

Muthoot Capital Services Ltd. Corporate Events

Muthoot Capital Raises ₹88.68 Crore via Sixth Securitization of Two-Wheeler Loans in FY26

Muthoot Capital Services Ltd. has completed a securitization transaction by assigning a pool of two-wheeler loan receivables totaling about ₹93.55 crore, raising roughly ₹88.68 crore in multiple tranches on March 2, 2026. This marks the company’s sixth securitization or direct assignment deal in the 2025-26 financial year, with the entire pool categorized as non-priority sector and structured in line with Reserve Bank of India guidelines, underscoring its continued reliance on securitization to fund loan growth and manage balance-sheet liquidity.

The repeated use of securitization signals an active strategy to recycle capital from its two-wheeler loan portfolio and may enhance funding flexibility while potentially improving asset-liability management. For investors and lenders, the latest transaction highlights sustained access to capital markets and adherence to regulatory norms, which can support ongoing expansion in the competitive retail lending and vehicle finance space.

Muthoot Capital Raises ₹94.86 Crore via Direct Assignment of Two-Wheeler Loans

Muthoot Capital Services has completed a direct assignment transaction of its two-wheeler loan receivables, assigning a pool of non-priority sector loans worth about ₹105.40 crore and raising approximately ₹94.86 crore on 27 February 2026. This marks the company’s fifth securitisation or direct assignment deal in FY 2025-26, underscoring its continued use of structured funding to unlock capital from its loan book and support further growth in its lending business while operating within Reserve Bank of India guidelines.

Muthoot Capital Releases Q3 FY26 Earnings Call Transcript

Muthoot Capital Services Limited has released the transcript of its Q3 FY26 earnings conference call with investors, focused on the unaudited financial results for the quarter and nine months ended December 31, 2025. The company has submitted this transcript to the stock exchanges in compliance with SEBI’s disclosure regulations and has also made it available on its website, ensuring greater transparency and structured communication with shareholders and market participants.

Muthoot Capital Publishes Q3 and Nine-Month FY26 Unaudited Results in Newspapers

Muthoot Capital Services Ltd. has notified the stock exchanges that it has published its unaudited financial results for the quarter and nine months ended December 31, 2025, in the Business Standard (English) and Mangalam (Malayalam) newspapers, in compliance with SEBI’s Listing Obligations and Disclosure Requirements. By formally disseminating these results through national and regional dailies and filing the intimation under Regulation 30, the company reinforces its disclosure practices for equity and debt holders, supporting transparency for investors who track its quarterly performance and financial health.

Muthoot Capital Board Clears Q3 FY26 Results, Strengthens Audit and Risk Leadership

Muthoot Capital Services Ltd. has reported its unaudited financial results for the quarter and nine months ended 31 December 2025, as approved by its board of directors in a meeting held on 21 January 2026, and submitted the accompanying limited review report from its statutory auditors in compliance with Indian listing regulations. In the same meeting, the board strengthened its governance and risk oversight framework by appointing Krishnaraj S as Chief Internal Auditor for a three-year term effective 21 January 2026 and reappointing Umadevi Pazhoor Unnikrishnan as Chief Risk Officer for another three-year term starting 22 March 2026, signaling continued focus on internal controls and risk management for stakeholders in its listed securities.

Muthoot Capital Board Clears Q3 and Nine-Month FY26 Unaudited Results

Muthoot Capital Services Ltd., a Kochi-based NBFC focused on retail lending and capital market-related financial services, has its equity and multiple debt instruments listed on the BSE and NSE, reflecting its active presence in India’s listed debt and equity markets. The company announced that its board of directors has approved the unaudited financial results for the quarter and nine months ended December 31, 2025, along with the statutory auditors’ limited review report, a certificate of security cover, and statements on utilization and deviation of issue proceeds, signaling continued regulatory compliance and transparency to shareholders and debtholders under SEBI’s listing framework.

Muthoot Capital to Present Q3 and Nine-Month FY26 Results to Investors

Muthoot Capital Services Ltd. has announced that it will host an investors’ conference call on January 22, 2026 to discuss its unaudited financial results for the quarter and nine months ended December 31, 2025, and has circulated an accompanying investor presentation to the stock exchanges. The disclosure underscores the company’s ongoing compliance with SEBI’s listing regulations and its efforts to maintain transparency and regular engagement with equity and debt investors, who closely track such updates for insights into financial performance, asset quality and future strategy.

Muthoot Capital Raises ₹50 Crore via Short-Term Commercial Paper Issue

Muthoot Capital Services Ltd. has raised short-term funding by issuing commercial paper aggregating ₹50 crore on January 21, 2026, as disclosed to the stock exchanges under SEBI’s Listing Regulations. The 99-day instrument, carrying a discount rate of 8.7665% and rated CRISIL A1+, is priced at 97.6775, matures on April 30, 2026, and has been fully allotted to Vivriti Alpha Debt Fund, underscoring the company’s continued access to money market funding and support from institutional debt investors.

Muthoot Capital Strengthens Governance With New Chief Internal Auditor, CRO Reappointment

Muthoot Capital Services Ltd. has announced changes in its senior management, appointing chartered accountant Krishnaraj S as Chief Internal Auditor for a three-year term effective January 21–22, 2026, with responsibility for leading the internal audit function, leveraging his 19 years of experience in finance, risk and compliance. The company has also reappointed Mrs. Umadevi Pazhoor Unnikrishnan as Chief Risk Officer for a further three years from March 22, 2026, reinforcing its risk management and internal control framework at a time when governance standards and regulatory expectations for NBFCs remain elevated, signaling a continued focus on robust oversight for stakeholders, including investors and lenders.