More Stories

Informist, Friday, Apr. 24, 2026

By Pratiksha

NEW DELHI – Shriram Finance Ltd.'s net profit for the March quarter rose sharply on year, posting its biggest on-year jump in eight quarters, mainly due to healthy growth in assets under management and net interest income. 

Beating Street estimates, the company posted a net profit of INR 30.14 billion for the March quarter, up 41% on year and 20% on quarter. Analysts had expected the company's net profit for the quarter to rise 28% on year to INR 27.43 billion. After the quarterly earnings announcement, shares of the non-banking finance company rose over 2% at INR 1030 on the National Stock Exchange, but eventually ended the session broadly flat at INR 1011.30.

The company's assets under management rose 15% on year to INR 3.02 trillion as of Mar. 31. Of the total assets under management, the commercial vehicle segment, which has the biggest share at 47%, rose almost 20% on year to INR 1.42 trillion during Jan-Mar. Passenger vehicle segment grew 19% on year to INR 644.13 billion and gold loan segment increased 37% to INR 66.22 billion. Farm equipments rose 32% on year to INR 68.87 billion. The construction equipment declined for fourth consecutive quarter and was the only segment within the AUM to see a fall. It fell 26% on year to INR 133.10 billion.

The Chennai-based company's total income grew at the slowest year-on-year pace since Oct-Dec 2021. Total income rose over 9% on year to INR 125.28 billion during the March quarter, primarily due to a 12% year-on-year jump in interest income to INR 120.87 billion. In Jan-Mar, the company's net interest income--the difference between the interest earned and interest expended--rose almost 16% on year to INR 69.94 billion. 

The company's gross non-performing asset ratio fell to 4.58% as of Mar. 31 from 4.55% a year ago and 4.54% a quarter ago. The net non-performing asset ratio fell to 2.33% as of Mar.31 from 2.38% a quarter ago and 2.64% a year ago. The company's non-performing asset provision coverage ratio rose to 50.34% as of Mar. 31 from 48.77% at the end of the previous quarter.

The hit to the bottom line from slower rise in total income was offset by a fall in total expenses, which declined for the first time since March quarter of 2021. Total expenses fell almost 1% on year to INR 86.13 billion.

Shriram Finance's net interest margin rose to 8.61% in the March quarter from 8.58% a quarter ago and 8.25% a year ago, in line with analysts' expectations. Most brokerages had expected the company's net interest margin to have expanded in the March quarter owing to a reduction in cost of funds after the 125 bps of rate cuts by the Reserve Bank of India's Monetary Policy Committee in 2025 and due to the recent spate of credit rating upgrades for the company.

Shriram Finance's capital adequacy ratio was 20.40% as of Mar. 31, up from 20.27% at the end of the previous quarter. Its liquidity coverage ratio was 323.17% as of Mar. 31, against 334.93% a quarter ago. 

On Apr. 8, the company completed a preferential allotment of 471 million fully paid up equity shares of face value of INR 2 each to Japan's MUFG Bank at an issue price of INR 840.93 per share. This transaction, totalling INR 396.2 billion, resulted in MUFG Bank holding a 20.00% stake in Shriram Finance on a fully diluted basis. This significantly bolsters the company's capital adequacy and provides a robust foundation for its long-term strategic expansion, it said in a press release.

Shriram Finance has approved the appointment of Morihiko Fuji and Shinichi Fujinami, nominees of MUFG Bank, as additional directors of the company, in the category of non-executive non-independent directors with effect from Friday. The company has also approved the re-appointment of Parag Sharma as managing director and chief executive officer for a further period of five years with effect from Dec. 13 up to Dec. 12, 2031. 

The company's board of directors has recommended a final dividend of INR 6 per equity share of face value of INR 2 each fully paid up for the financial year 2025-26. The record date for to recieve the final dividend is fixed at Jul. 3. The company has approved the resource mobilisation plan for FY27 via issuance of debt securities. 

For FY26, the company's net profit was up 2% on year at INR 99.98 billion. The total income was up 15% on year at INR 481.78 billion. End

Edited by Akul Nishant Akhoury

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 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.