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Informist, Monday, Nov. 3, 2025

 

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--Sundaram Finance Jul-Sept net profit INR 3.94 bln vs INR 3.40 bln year ago 
--Sundaram Finance Jul-Sept revenue INR 18.14 bln vs INR 16.01 bln year ago 
--Sundaram Finance Apr-Sept net profit INR 8.23 bln vs INR 6.48 bln year ago 
--Sundaram Finance Apr-Sept revenue INR 36.97 bln vs INR 30.69 bln year ago 

 

By Srijita Bose

 

MUMBAI – A surge in provisions limited the rise in net profit for Sundaram Finance Ltd. in the September quarter. While Sundaram Finance's net profit saw double-digit growth for the period due to a rise in its revenue from operations, it missed analysts' expectations by a wide margin. 

 

During the September quarter, net profit of the company rose nearly 16% on year to INR 3.94 billion, but fell 8% from the previous quarter. Nirmal Bang Equities Pvt. Ltd. had estimated the net profit at INR 5.05 billion, while Prabhudas Lilladher Pvt. Ltd. had estimated it at INR 4.02 billion. After the earnings were announced, shares of the company traded 2% higher at INR 4,689.10 at 1423 IST on the National Stock Exchange. It closed around 1.9% higher at INR 4,684.90. 

 

Revenue from operations of the company rose over 13% to INR 18.14 billion in the September quarter. Within this, interest income of the company rose nearly 18% to INR 16.15 billion, while income from other services rose over 52% to INR 57.2 million. Meanwhile, other income of the company dropped nearly 62% to INR 41.6 million during the reporting quarter. 

 

Expenses due to impairment or provisions on financial instruments jumped nearly 50% on year to INR 1.17 billion during the September quarter, though it fell nearly 26% from the previous quarter. Finance costs rose over 11% to INR 9.01 billion. Total expenses of the company rose nearly 14% to INR 13.03 billion in the September quarter, while falling marginally by 2% from a quarter ago. 

 

Total assets under management of the company stood at INR 554.19 billion as of Sept.30, rising 15% from the previous year. On the asset quality front, the company's gross non-performing asset ratio stood at 2.80% as on Sept. 30, against 2.39% in the previous year. Meanwhile, the net non-performing asset ratio stood at 1.79% as on Sept. 30, against 1.55% a year ago. Its capital adequacy ratio stood at 19.3%, with tier I capital ratio at 16.9% as of Sept. 30. This was lower than against 20.0% as of September-end 2024, with tier I ratio at 16.4%. 

 

In the first six months of 2025-26 (Apr-Mar), the company earned a net profit of INR 8.23 billion, rising 27% on year. Revenue from operations of the company in Apr-Sept rose over 20% to INR 36.97 billion. 

 

The company also announced that its board has granted in-principle approval to acquire and merge Capitalgate Investment Advisors Pvt. Ltd. into Sundaram Alternate Assets Ltd., a step-down subsidiary of Sundaram Finance, for a consideration of INR 350 million, or INR 1,060 per equity share.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Tanima Banerjee

 

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