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Informist, Friday, Jan. 23, 2026

 

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--Shriram Finance Oct-Dec net profit INR 25.22 bln 
--Analysts saw Shriram Finance Oct-Dec net profit at INR 25 bln 
--Shriram Finance Oct-Dec total income INR 121.92 bln vs INR 107.05 bln yr ago 
--Shriram Finance Oct-Dec net profit INR 25.22 bln vs INR 35.70 bln year ago 
--Shriram Finance Apr-Dec net profit INR 69.85 bln vs INR 76.22 bln year ago 
--Shriram Fin to raise funds via NCDs, bonds in Feb-Apr 
--Shriram Finance Apr-Dec total income INR 356.5 bln vs INR 304.0 bln yr ago 
--Shriram Fin gross NPA 4.54% on Dec 31 vs 4.57% qtr ago, 5.38% year ago 
--Shriram Fin net NPA 2.38% on Dec 31 vs 2.49% qtr ago, 2.68% year ago 
--Shriram Finance Oct-Dec net interest income INR 67.64 bln, up 16.2% on yr 
--Shriram Finance capital adequacy ratio at 20.27% as on Dec 31 
--Shriram Finance AUM at INR 2.92 tln as on Dec 31, up 14.6% on year 
--Shriram Finance NPA provision coverage ratio 48.77% on Dec 31 
--Shriram Finance liquidity coverage ratio 334.93% as on Dec 31 
--Shriram Finance Q3 net interest income INR 67.64 bln vs INR 58.23 bln yr ago 
--Shriram Finance Oct-Dec NIM 8.58% vs 8.19% qtr ago, 8.48% year ago 
--Shriram Fin: One-time impact of INR 1.32 bln in Q3 from new labour codes
--Shriram Finance: Had impact of INR 1.97 bln in Q3 due to new labour codes 

 

By Shubham Rana

 

NEW DELHI – Shriram Finance Ltd.'s net profit for the December quarter rose on expected lines thanks to healthy growth in net interest income and assets under management. An increase in the net interest margin also helped the rise in net profit. Profit after tax, excluding exceptional item, saw the biggest on year rise in seven quarters.

 

The company posted a net profit of INR 25.22 billion for the December quarter, up 21% on year. Analysts had expected the company's net profit at INR 25 billion. Shriram Finance had reported a net profit of INR 35.70 billion for the year-ago quarter, which included a one-time gain of INR 14.89 billion. Excluding the one-time gain, the net profit was INR 20.80 billion. Sequentially, the net profit was up 9.3%.

The net interest income for the December quarter increased 16% on year to INR 67.64 billlion while assest under management were up 15% at INR 2.92 trillion as of Dec. 31. After the quarterly earnings announcement, shares of the non-banking finance company recovered losses and were up 0.6% at INR 1,011.40 on the National Stock Exchange at 1405 IST.

 

The company's net interest income for the December quarter was higher than analysts estimate of INR 66.51 billion. Shriram Finance's net interest margin rose to 8.58% in the December quarter from 8.19% a quarter ago and 8.48% a year ago. 

 

Of the total assets under management, the commercial vehicle segment, which has the biggest share at 46%, rose 15% on year to INR 1.33 trillion during Oct-Dec. Passenger vehicle segment grew 22% on year to INR 632.17 billion and personal loan segment increased 21% to INR 104.44 billion. Construction equipment was the only segment within the AUM to see a decline. It fell 20% on year to INR 142.19 billion.

 

The Chennai-based company's total income grew at the slowest year-on-year pace since Jan-Mar 2022. Total income rose 14% on year to INR 121.92 billion during the December quarter, on the back of a similar rise in net revenue from operations. 

 

The slower rise in total income was offset by the weakest growth in total expenses since the June quarter of 2023. Total expenses rose 11% on year to INR 88.31 billion. Expenses rose at a slower pace in the December quarter because of the weakest growth in finance costs since the March quarter of 2022. Finance cost was up 11% on year at INR 52.59 billion for the reporting quarter.

 

Shriram Finance's employee benefits expense grew 28% on year, the biggest rise in nine quarters, to INR 12.37 billion. The rise was because of the impact of new labour codes with the company seeing an incremental impact of INR 1.97 billion on "gratuity and long-term compensated absences representing increase in the past service costs due to change in definition of wages under the New Labour Codes." This includes an impact of INR 1.32 billion on gratuity, the company said. 

 

For the nine months ended December, Shriram Finance reported a net profit of INR 69.85 billion against INR 76.22 billion a year ago. Total income during Apr-Dec was INR 356.5 billion, higher than INR 304.0 billion in the same period a year ago. 

 

Shriram Finance's gross non-performing asset ratio moderated to 4.54% as of Dec. 31 from 4.57% a quarter ago. The gross NPA ratio was 5.38% on Dec. 31, 2024. Net NPA improved to 2.38% on Dec. 31 from 2.49% a quarter ago and 2.68% a year ago. The company's NPA provision coverage ratio rose to 48.77% as on Dec. 31 from 46.70% at the end of September. It was 51.64% a year ago.

 

The lender's capital adequacy ratio was 20.27% as of Dec. 31, down from 20.68% at the end of the previous quarter and 21% a year ago. The liquidity coverage ratio was 334.93% as of Dec. 31 against 297.21% a quarter ago. Shriram Finance's board Friday approved fund raising, including through non-convertible debentures, in Feb-Apr.  End

 

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

 

Edited by Vandana Hingorani

 

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