Stock returns are an essential indicator for investors in assessing the performance of Islamic financial institutions listed on the Indonesia Stock Exchange (IDX). This study examines the effect of Return on Assets (ROA), Debt to Equity Ratio (DER), Current Ratio (CR), Total Asset Turnover (TATO), and Earnings Per Share (EPS) on stock returns, with Price to Book Value (PBV) as a mediating variable. Employing a quantitative approach, this study applies panel data regression and Sobel mediation testing to quarterly data from 9 Islamic financial institutions selected through purposive sampling from a population of 59 firms over the 2020–2024 post-pandemic period. The results indicate that PBV does not mediate the relationship between financial ratios and stock returns. However, DER, CR, TATO, and EPS have a significant direct effect on stock returns, while ROA does not show a significant influence. These findings support signaling theory, indicating that investors in Islamic capital markets place greater emphasis on leverage, liquidity, operational efficiency, and earnings performance. The study contributes to the Islamic finance literature by providing post-pandemic empirical evidence and offers practical implications for investors and management in enhancing stock performance.