Shriram Finance

Healthy loan growth and margins, steady asset quality

Shriram Finance has posted strong 41% surge in the net profit to Rs 3020.94 crore on consolidated basis in the quarter ended March 2026 (Q4FY2026). The strong growth in the net profit is driven by healthy loan growth, improvement in margins and asset quality, while the sharp decline in cost to income ratio also boosted the bottomline.

The NIM improved to 8.61% in Q4FY2026. The NIM had stood at 8.58% in the previous quarter and 8.25% in the corresponding quarter last year. The net interest income (NII) of the company increased at strong of 16% yoy to Rs 6994.1 crore in Q4FY2026.

The company has maintained healthy loan growth at 15% at end March 2026. The Asset under Management (AUM) increased 15% to Rs 302274 crore at end March 2026. Further, the company has exhibited improvement in the asset quality, with NNPA ratio declining to 2.33% in Q4FY2026.

Shriram Finance reported 12% rise in Income from operations at Rs 12093.60 crore on a consolidated basis. Other income declined 35% to Rs 439.17 crore compared with Rs 670.74 crore in Q4FY2025. The total income moved up 9% to Rs 12532.77 crore. Interest expense increased 2% to Rs 5336.08 crore, while other expenses declined 2% to Rs 1694.82 crore.

Ensuing Gross profit increased 22% to Rs 5501.87 crore. Depreciation rose 2% to Rs 174.66 crore, while provision and write offs dipped 10% to Rs 1409.73 crore. PBT moved up 41% to Rs 3917.48 crore. Effective tax rate stood at 23.0% compared to 22.8% in the corresponding period last year. The share of profit of associate jumped 42% to Rs 6.23 crore. The final bottomline of the company improved 41% to Rs 3021.36 crore in Q4FY2026.

Business performance and Asset quality

AUM of the company increased 15% yoy to Rs 302274 crore end March 2026. The commercial vehicle loan book increased 19% yoy to Rs 141667 crore, passenger vehicle 19% to Rs 64413 crore, farm equipment 32% to Rs 6887 crore, MSME 10% to Rs 41245 crore, personal loans 12% to Rs 10717 crore and two wheelers 12% to Rs 17414 crore. The gold loan AUM growth has accelerated sharply to 37% to Rs 6622 crore. However, the construction equipment loan book fell 26% to Rs 13310 crore end March 2026 over March 2025.

The borrowings of the company rose 7% yoy and declined 0.4% qoq to Rs 250690 crore end March 2026.

The branch network of the company was steady at 3225 branches with 9.73 million customers at end March 2026. The employee count of the company stood at 76241 at end March 2026.

The gross stage 3 assets ratio rose 4 bps qoq to 4.58% at end March 2026, while Net NPA ratio dipped 5 bps qoq to 2.33% at end March 2026. The company has raised NPA coverage ratio at 50.34% at end March 2026.

Book value of the company on a consolidated basis stood at Rs 445.3 per share at end March 2026. The adjusted book value increased to Rs 416.3 per share.

The company has announced final dividend of Rs 6 per share, bringing the total FY26 dividend to Rs 10.80 per share.

Financial Performance FY2026:

For the ended March 2026 (FY2026), Shriram Finance reported 16% rise in Income from operations at Rs 46657.82 crore. Other income declined 1% to Rs 1535.38 crore compared with Rs 1551.83 crore in FY2025. The total income moved up 15% to Rs 48193.20 crore. Interest expense increased 17% to Rs 21521.02 crore, while other expenses rose 13% to Rs 7334.14 crore.

Ensuing Gross profit increased 14% to Rs 19338.04 crore. Depreciation moved up 8% to Rs 698.90 crore, while provision and write offs rose 1% to Rs 5338.95 crore. PBT moved up 21% to Rs 13300.19 crore. However, the PBT after one off income of Rs 1553.66 crore for FY25 rose 6% to Rs 13299.64 crore in 9MFY26. Effective tax rate stood at 24.8% compared to 28.1% in the corresponding period last year. The share of profit of associate increased 67% to Rs 20.50 crore. The final bottomline of the company improved 6% to Rs 10024.16 crore in FY2026.

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Shriram Finance: Consolidated Results
Particulars	2603 (3)	2503 (3)	Var %	2603 (12)	2503 (12)	Var %
Income from operations	12093.60	10789.51	12	46657.82	40307.64	16
Other Income	439.17	670.74	-35	1535.38	1551.83	-1
Total Income	12532.77	11460.25	9	48193.20	41859.47	15
Interest Expenses	5336.08	5223.99	2	21521.02	18454.58	17
Other expenses	1694.82	1729.93	-2	7334.14	6498.66	13
Gross profit	5501.87	4506.33	22	19338.04	16906.23	14
Depreciation	174.66	171.06	2	698.90	645.32	8
Profit before tax and Provisions	5327.21	4335.27	23	18639.14	16260.91	15
Provisions and write off	1409.73	1563.29	-10	5338.95	5311.66	1
Profit before tax?	3917.48	2771.98	41	13300.19	10949.25	21
EO	0.00	0.00	-	0.00	1553.66	-
PBT after EO	3917.48	2771.98	41	13300.19	12502.91	6
Provision for tax	902.34	632.59	43	3295.99	3079.60	7
Net profit	3015.14	2139.39	41	10004.20	9423.31	6
Share of profit/loss of associate	6.23	4.38	42	20.50	12.31	67
Minority interest	0.01	0.00	-	-0.01	22.50	LP
PAT	3021.36	2143.77	41	10024.71	9413.12	6
P/(L) from discontinued operations net of tax	-0.42	0.00	-	-0.55	140.70	PL
Net profit after discontinued operations	3020.94	2143.77	41	10024.16	9553.82	5
EPS*(Rs)	51.4	45.6	?	42.6	43.8	?
Equity	470.5	376.1	?	470.5	376.1	?
Adj BV (Rs)	416.3	265.9	?	416.3	265.9	?
* 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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