More Stories

Informist, Friday, Oct. 31, 2025

 

Please click here to read all liners published on this story

--Shriram Finance AUM at INR 2.81 tln as on Sept 30, up 15.7% on year 
--Shriram Finance Jul-Sept NIM 8.19% vs 8.11% qtr ago, 8.74% year ago 
--Shriram Finance Jul-Sept net interest income INR 62.67 bln up 11.8% YoY 
--Shriram Finance liquidity coverage ratio 297.21% as on Sept 30 
--Shriram Finance NPA provision coverage ratio 46.70% as on Sept 30 
--Shriram Fin net NPA 2.49% on Sept 30 vs 2.57% qtr ago, 2.64% year ago 
--Shriram Fin gross NPA 4.57% on Sept 30 vs 4.53% qtr ago, 5.32% year ago 
--Shriram Finance capital adequacy ratio at 20.68% as on Sept 30 
--Shriram Fin Apr-Sept total income INR 234.58 bln vs INR 196.94 bln yr ago 
--Shriram Fin Apr-Sept net profit INR 44.63 bln vs INR 40.52 bln year ago 
--Shriram Fin interim dividend record date is Nov 7 
--Shriram Fin to pay INR 4.80 per share interim dividend 
--Shriram Fin Jul-Sept total income INR 119.17 bln vs INR 100.97 bln yr ago 
--Shriram Finance Jul-Sept net profit INR 23.07 bln vs INR 20.71 bln year ago 
--Analysts saw Shriram Finance Jul-Sept net profit at INR 22.19 bln 
--Shriram Finance Jul-Sept net profit INR 23.07 bln

 

By Pratiksha

 

NEW DELHI – Shriram Finance Ltd.'s net profit for the September quarter rose on year, thanks to healthy growth in assets under management and net interest income. However, a sharp year-on-year jump in finance costs ate into the company's bottom line. 

 

Beating Street estimates, the company posted a net profit of INR 23.07 billion for the September quarter, up 11% on year and 7% on quarter. Analysts had expected the company's net profit for the quarter to rise 7% on year to INR 22.19 billion. After the quarterly earnings announcement, shares of the non-banking finance company were up 3.5% at INR 763.70 on the National Stock Exchange at 1445 IST. The stock eventually ended the day's trading session nearly 1.5% higher at INR 748.90.

 

The company's assets under management rose 15.7% on year to INR 2.81 trillion as of Sept. 30. This comes on top of a 16.6% on-year growth to INR 2.72 trillion in the previous quarter.

 

Of the total assets under management in the September quarter, the shares of the commercial vehicle, passenger vehicle, and micro, small, and medium enterprise segments were 46%, 21%, and 14%, respectively. The gold loan and personal loan segments accounted for 1.9% and 3.8%, respectively, of the total assets under management.

 

The commercial vehicle segment grew 14% on year to INR 1.28 trillion in Jul-Sept while the farm equipment segment rose 38% on year to INR 61.82 billion, posting the biggest growth in assets under management in the reporting quarter. The micro, small, and medium enterprise segment reported an on-year growth of 26% to INR 406.35 billion.

 

The gold loans and construction equipment segments continued to underperform and were the only ones to report year-on-year fall in the September quarter. Gold loans declined 12% on year to INR 53.36 billion and construction equipment loans declined 13% on year to INR 153.67 billion.

 

The Chennai-based company's total income rose over 18% on year to INR 119.17 billion during the September quarter, primarily due to an 18% year-on-year jump in interest income to INR 115.51 billion. In Jul-Sept, the company's net interest income--the difference between the interest earned and interest expended--rose almost 12% on year to INR 62.67 billion. However, analysts had expected net interest income to rise 12.8% on year to INR 61.61 billion.

 

The company's asset quality improved year on year, with the gross non-performing asset ratio falling to 4.57% as of Sept. 30 from 5.32% a year ago. It was up slightly from 4.53% a quarter ago. The net non-performing asset ratio fell to 2.49% as of Sept. 30 from 2.57% as of Jun. 30 and 2.67% a year ago. The company's non-performing asset provision coverage ratio rose to 46.70% as of Sept. 30 from 44.31% at the end of the previous quarter.

 

Shriram Finance's net interest margin rose to 8.19% in Jul-Sept from 8.11% a quarter ago, in line with analysts' expectations. However, the net interest margin fell 629 basis points year-on-year. 

 

Shriram Finance's capital adequacy ratio was 20.68% as of Sept. 30, down from 20.79% at the end of the previous quarter. Its liquidity coverage ratio was 297.21% as of Sept. 30, against 268.74% a quarter ago.

 

The lender declared an interim dividend of INR 4.80 per fully paid-up equity share of face value INR 2.00 for the financial year 2025-26 (Apr-Mar). The record date for payment of interim dividend is Nov. 7. The company's banking and finance committee and the allotment committee, non-convertible debentures, will meet to consider and approve the issue and allotment of redeemable non-convertible debt securities or bonds between Nov. 1 and Jan. 31. The company will consider raising funds by way of issue of redeemable non-convertible debt securities, including bonds, in onshore or offshore markets on a private placement basis, it said.

 

For the first six months of FY26, the company's net profit was up 10% on year at INR 44.63 billion. The total income was up 19% on year at INR 234.58 billion.  End

 

Edited by Rajeev Pai

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.