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Informist, Friday, Oct. 31, 2025

 

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--Shriram Fin: See credit growth improving in passenger vehicle segment Q3 
--CONTEXT: Comments by Shriram Finance mgmt in post-earnings analyst concall 
--Shriram Fin: To look for cheaper borrowing avenues in coming qtrs
--Shriram Finance: Expect AUM growth to rise to 17.74% in Oct-Mar
--Shriram Finance: To pass on lower cost of borrow to customers over 18 mos 
--Shriram Finance: Yet to receive RBI approval for PD license for subsidiary 

 

By Shubham Rana and Krity Ambey

 

MUMBAI/NEW DELHI – Shriram Finance Ltd. expects its loan growth to pick up in the second half of 2025-26 (Apr-Mar), the company's management said Friday. Strong credit demand in October and a resilient rural economy should help the company deliver a better financial performance in Oct-Mar, the company said. 

 

"The second quarter is normally a tricky quarter, which we have done quite well," Umesh Revankar, the company's executive vice-chairman, said in a post-earnings conference call with analysts. "The demand across the country for credit has been good and the asset quality has been holding good, and with some improvement in net interest margin, we should expect better numbers coming in Q3 in Q4," Revankar said. 

 

Shriram Finance's net profit for the September quarter rose higher than expected to INR 23.07 billion, up 11% on year. The rise in net profit was driven by healthy growth in assets under management and net interest income. 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 nearly 1.5% higher at INR 748.90.

 

The company's assets under management rose 15.74% on year to INR 2.81 trillion as of Sept. 30. The management said that growth in assets under management could rise to around 17.74% in the second half of the year.

 

The company sees credit growth improving in the passenger vehicle segment in the December quarter, supported by the reduction in goods and services tax last month. The passenger vehicle segment, which makes up 21% of the total loan book, grew 22% on year to INR 596 billion as of Sept. 30. 

 

The non-banking financial company will look at cheaper sources of borrowing in the coming quarters. The company's cost of liabilities has come down to 8.83% as of Sept. 30 from 8.95% at the end of March. The company is unlikely to pass on the benefit of lower cost of borrowing to its customers in the near future and may only do so over the next 18 months, the management said. 

 

The company's subsidiary, Shriram Overseas Investments Ltd., it is yet to receive approval from the Reserve Bank of India for a primary dealership licence, the management said. Shriram Finance had acquired 100% stake in Shriram Overseas Investments earlier this year with the aim to run a primary dealership business. "The subsidiary is continuing to do government securities trading but to become a full-fledged PD, the licence is something which we will await from the regulator," the management said.  End

 

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

 

Edited by Avishek Dutta

 

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