Shriram Finance

Healthy AUM growth, margins ease

Shriram Finance has posted 7% increase in the net profit to Rs 2159.40 crore on consolidated basis in the quarter ended June 2025 (Q1FY2026). The company has posted 9% growth in the PBT to Rs 2906.23 crore. The company has maintained stable asset quality in Q1FY2026. The NIM declined to 8.11% in Q1FY2026 from 8.25% in the previous quarter and 8.79% in the corresponding quarter last year. The net interest income (NII) of the company increased 13% yoy to Rs 6026.4 crore in Q1FY2026.

The company has maintained healthy loan growth at 17% at end June 2025. The Asset under Management (AUM) increased 17% to Rs 272249 crore at end June 2025. Further, the company has exhibited improvement in the asset quality, with NNPA ratio declining to 2.57% in Q1FY2026.

Shriram Finance reported 19% rise in Income from operations at Rs 11173.55 crore on a consolidated basis. Other income jumped 49% to Rs 368.94 crore compared with Rs 246.92 crore in Q1FY2025. The total income moved up 20% to Rs 11542.49 crore.

Interest expense jumped 31% to Rs 5400.76 crore, while other expenses moved up 21% to Rs 1776.82 crore. Ensuing Gross profit increased 9% to Rs 4364.91 crore. Depreciation increased 13% to Rs 173.11 crore, while provision and write offs moved up 9% to Rs 1285.57 crore.

PBT moved up 9% to Rs 2906.23 crore. Effective tax rate stood at 25.8% compared to 25.7% in the corresponding period last year. The share of profit of associate jumped 258% to Rs 4.19 crore. The net profit of the company improved 9% to Rs 2159.45 crore in Q1FY2026. The final bottom line after profit from discontinued operations, rose 7% to Rs 2159.40 crore in Q1FY2026.

Business performance and Asset quality

AUM of the company increased 17% yoy to Rs 272249 crore end June 2025. The commercial vehicle loan book increased 12% yoy to Rs 123132 crore, passenger vehicle 23% to Rs 56635 crore, farm equipment 46% to Rs 5827 crore, MSME 35% to Rs 38824 crore, personal loans 15% to Rs 10285 crore and two wheelers 23% to Rs 15856 crore. However, the gold loan AUM declined 16% to Rs 5154 crore and construction equipment fell 3% to Rs 16535 crore end June 2025 over June 2024.

The borrowings of the company increased 27% to Rs 242910 crore end June 2025.

The branch network of the company increased to 3225 branches with 9.71 million customers at end June 2025. The employee count of the company stood at 79186 at end June 2025.

The gross stage 3 assets ratio declined to 4.53% at end June 2025 and Net NPA ratio to 2.57% at end June 2025. The company has maintained NPA coverage ratio at 44.3% at end June 2025.

Book value of the company on a consolidated basis stood at Rs 313.0 per share at end June 2025. The adjusted book value increased to Rs 276.9 per share at end June 2025.

Financial Performance FY2025:

The company has booked Rs 1553.66 crore as gains from sale of entire stake in subsidiary Shriram Housing Finance Company during the quarter.

For the year ended March 2025 (FY2025), Shriram Finance reported 20% rise in Income from operations at Rs 40307.64 crore. Other income increased 11% to Rs 1551.83 crore compared with Rs 1397.95 crore in FY2024. The total income moved up 20% to Rs 41859.47 crore.

Interest expense increased 25% to Rs 18454.58 crore, while other expenses rose 20% to Rs 6498.66 crore. Ensuing Gross profit increased 14% to Rs 16906.23 crore. Depreciation moved up 13% to Rs 645.32 crore, while provision and write offs galloped 18% to Rs 5311.66 crore.

PBT moved up 13% to Rs 10949.25 crore. The company has booked Rs 1553.66 crore gains on stake sale subsidiary, thus the PBT after exceptional gains jumped 29% to Rs 12502.91 crore.

Effective tax rate stood at 28.1% compared to 25.7% in the corresponding period last year. The share of profit of associate increased 58% to Rs 12.31 crore. Minority interest declined 31% to Rs 22.50 crore and the profit from discontinued operations declined 30% to Rs 140.70 crore. The final bottomline of the company improved 30% to Rs 9553.82 crore in FY2025.

?

Shriram Finance: Consolidated Results
Particulars	2506 (3)	2406 (3)	Var %	2503 (12)	2403 (12)	Var %
Income from operations	11173.55	9362.79	19	40307.64	33599.66	20
Other Income	368.94	246.92	49	1551.83	1397.95	11
Total Income	11542.49	9609.71	20	41859.47	34997.61	20
Interest Expenses	5400.76	4128.91	31	18454.58	14802.60	25
Other expenses	1776.82	1473.18	21	6498.66	5424.20	20
Gross profit	4364.91	4007.62	9	16906.23	14770.81	14
Depreciation	173.11	153.48	13	645.32	568.83	13
Profit before tax and Provisions	4191.80	3854.14	9	16260.91	14201.98	14
Provisions and write off	1285.57	1187.55	8	5311.66	4518.34	18
Profit before tax?	2906.23	2666.59	9	10949.25	9683.64	13
Provision for tax	750.98	686.00	9	3079.60	2493.16	24
Net profit	2155.25	1980.59	9	9423.31	7190.48	31
Share of profit/loss of associate	4.19	1.17	258	12.31	7.78	58
Minority interst	-0.01	7.84	LP	22.50	32.51	-31
PAT	2159.45	1973.92	9	9413.12	7165.75	31
P/(L) from discontinued operations net of tax	-0.05	48.88	PL	140.70	200.63	-30
Net profit after discontinued operations	2159.40	2022.80	7	9553.82	7366.38	30
EPS*(Rs)	45.9	42.0	?	44.1	38.1	?
Adj BV (Rs)	276.9	236.2	?	265.9	226.9	?
* EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 10, Figures in Rs Crore, PL: Profit to Loss, LP: Loss to Profit
Source: Capitaline Corporate Database

Powered by Capital Market - Live News