Shriram Finance

Strong loan growth asset quality, margins recovering

Shriram Finance has posted 8% increase in the net profit to Rs 2314.17 crore on consolidated basis in the quarter ended September 2025 (Q2FY2026). The company has posted 13% growth in the PBT to Rs 3112.96 crore. The company has maintained stable asset quality in Q2FY2026. The NIM improved to 8.19% in Q2FY2026, after moderating for last 5 straight quarters. The NIM had stood at 8.11% in the previous quarter and 8.74% in the corresponding quarter last year. The net interest income (NII) of the company increased 12% yoy to Rs 6266.8 crore in Q2FY2026.

The company has maintained healthy loan growth at 16% at end September 2025. The Asset under Management (AUM) increased 16% to Rs 281309 crore at end September 2025. Further, the company has exhibited improvement in the asset quality, with NNPA ratio declining to 2.49% in Q2FY2026.

Shriram Finance reported 18% rise in Income from operations at Rs 11551.41 crore on a consolidated basis. Other income increased 31% to Rs 369.97 crore compared with Rs 282.18 crore in Q2FY2025. The total income moved up 18% to Rs 11921.38 crore.

Interest expense increased 27% to Rs 5524.83 crore, while other expenses rose 11% to Rs 1775.76 crore. Ensuing Gross profit increased 11% to Rs 4620.79 crore. Depreciation moved up 10% to Rs 174.50 crore, while provision and write offs rose 8% to Rs 1333.33 crore.

PBT moved up 13% to Rs 3112.96 crore. Effective tax rate stood at 25.8% compared to 24.7% in the corresponding period last year. The share of profit of associate increased 30% to Rs 4.41 crore. The final bottomline of the company improved 12% to Rs 2314.22 crore in Q2FY2026.

Business performance and Asset quality

AUM of the company increased 16% yoy to Rs 281309 crore end September 2025. The commercial vehicle loan book increased 14% yoy to Rs 128140 crore, passenger vehicle 22% to Rs 59551 crore, farm equipment 38% to Rs 6182 crore, MSME 26% to Rs 40635 crore, personal loans 27% to Rs 10548 crore and two wheelers 19% to Rs 15551 crore. However, the gold loan AUM declined 12% to Rs 5336 crore and construction equipment fell 13% to Rs 15367 crore end September 2025 over September 2024.

The borrowings of the company increased 13% to Rs 234310 crore end September 2025.

The branch network of the company increased to 3225 branches with 9.66 million customers at end September 2025. The employee count of the company stood at 78833 at end September 2025.

The gross stage 3 assets ratio was nearly steady at 4.57% at end September 2025, while Net NPA ratio declined to 2.49% at end September 2025. The company has raised NPA coverage ratio at 46.7% at end September 2025.

Book value of the company on a consolidated basis stood at Rs 322.2 per share at end September 2025. The adjusted book value increased to Rs 286.1 per share at end September 2025.

Financial Performance H1FY2026

For the half year ended September 2025 (H1FY2026), Shriram Finance reported 18% rise in Income from operations at Rs 22724.96 crore. Other income surged 43% to Rs 738.91 crore compared with Rs 516.46 crore in H1FY2025. The total income moved up 19% to Rs 23463.87 crore.

Interest expense increased 29% to Rs 10925.59 crore, while other expenses rose 16% to Rs 3552.58 crore. Ensuing Gross profit increased 10% to Rs 8985.70 crore. Depreciation gained 11% to Rs 347.61 crore, while provision and write offs rose 8% to Rs 2618.90 crore.

PBT moved up 11% to Rs 6019.19 crore. Effective tax rate stood at 25.8% compared to 25.2% in the corresponding period last year. The share of profit of associate jumped 89% to Rs 8.60 crore. The final bottomline of the company improved 11% to Rs 4473.67 crore in H1FY2026.

Shriram Finance: Consolidated Results
Particulars	2509 (3)	2409 (3)	Var %	2509 (6)	2409 (6)	Var %	2503 (12)	2403 (12)	Var %
Income from operations	11551.41	9814.50	18	22724.96	19177.29	18	40307.64	33599.66	20
Other Income	369.97	282.18	31	738.91	516.46	43	1551.83	1397.95	11
Total Income	11921.38	10096.68	18	23463.87	19693.75	19	41859.47	34997.61	20
Interest Expenses	5524.83	4350.42	27	10925.59	8479.33	29	18454.58	14802.60	25
Other expenses	1775.76	1600.88	11	3552.58	3061.42	16	6498.66	5424.20	20
Gross profit	4620.79	4145.38	11	8985.70	8153.00	10	16906.23	14770.81	14
Depreciation	174.50	158.86	10	347.61	312.34	11	645.32	568.83	13
Profit before tax and Provisions	4446.29	3986.52	12	8638.09	7840.66	10	16260.91	14201.98	14
Provisions and write off	1333.33	1234.99	8	2618.90	2422.54	8	5311.66	4518.34	18
Profit before tax?	3112.96	2751.53	13	6019.19	5418.12	11	10949.25	9683.64	13
EO	0.00	0.00	-	0.00	0.00	-	1553.66	0.00	-
PBT after EO	3112.96	2751.53	13	6019.19	5418.12	11	12502.91	9683.64	29
Provision for tax	803.16	680.27	18	1554.14	1366.27	14	3079.60	2493.16	24
Net profit	2309.80	2071.26	12	4465.05	4051.85	10	9423.31	7190.48	31
Share of profit/loss of associate	4.41	3.38	30	8.60	4.55	89	12.31	7.78	58
Minority interest	-0.01	12.87	-100	-0.02	20.71	-100	22.50	32.51	-
PAT	2314.22	2061.77	12	4473.67	4035.69	11	9413.12	7165.75	31
P/(L) from discontinued operations net of tax	-0.05	78.63	PL	-0.10	127.51	PL	140.70	200.63	-
Net profit after discontinued operations	2314.17	2140.40	8	4473.57	4163.20	7	9553.82	7366.38	30
EPS*(Rs)	49.2	43.9	?	47.6	42.9	?	44.1	38.1	?
Equity	376.2	376.0	?	376.2	376.0	?	376.1	375.8	?
Adj BV (Rs)	286.1	244.0	?	286.1	244.0	?	265.9	226.9	?
* EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 2, Figures in Rs Crore
Source: Capitaline Corporate Database

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