Quarterly Financial Results
Shriram Finance Reports 60% Jump in Q1 FY27 PAT; AUM Crosses ₹3.13 Lakh Crore
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- Shriram Finance Limited delivered a robust performance in the first quarter of FY27, driven by strong loan growth and improving profitability.
- The company reported 59.79% YoY growth in Profit After Tax (PAT) to ₹3,444.56 crore, while Net Interest Income (NII) increased 33.67% YoY to ₹8,055.70 crore.
- Assets Under Management (AUM) expanded 15.26% YoY to ₹3,13,798.39 crore, reflecting healthy business momentum across lending segments.
PRICE-SENSITIVE TRIGGER
Event: Shriram Finance announced its unaudited standalone and consolidated financial results for Q1 FY27, along with an investor update and approved a resource mobilisation plan for debt issuance between August and October 2026.
Type: Quarterly Financial Results
Impact: Positive
Immediate Effect: Strong earnings growth, higher Net Interest Income, expanding Assets Under Management, and improved capital position reinforce the company’s operating momentum and lending franchise.
Metrics:
Financial Metrics:
- Total Income: ₹13,412.11 crore (▲16.21% YoY)
- Revenue from Operations: ₹13,393.68 crore
- Net Interest Income (NII): ₹8,055.70 crore (▲33.67% YoY)
- Profit Before Tax (PBT): ₹4,622.11 crore (▲58.97% YoY)
- Profit After Tax (PAT): ₹3,444.56 crore (▲59.79% YoY)
- Basic EPS: ₹14.83 (vs ₹11.46)
- Assets Under Management (AUM): ₹3,13,798.39 crore (▲15.26% YoY)
Highlight:
- Shriram Finance recorded nearly 60% growth in quarterly profit while expanding its loan book beyond ₹3.13 lakh crore, supported by strong Net Interest Income growth and sustained lending momentum.
What Happened ?
Shriram Finance started FY27 on a strong note, reporting significant improvement in earnings despite a high base. Net Interest Income increased by more than one-third, driven by growth in the lending portfolio and healthy interest income. Profitability improved sharply as PAT approached ₹3,445 crore, while total income grew over 16% YoY.
The company’s loan book continued to expand, with Assets Under Management rising to ₹3.14 lakh crore, reflecting sustained demand across commercial vehicles, MSME, two-wheelers, personal loans, tractors, gold loans and other retail financing segments.
key details
Business & Operational Highlights:
- Net Interest Income increased 33.67% YoY to ₹8,055.70 crore.
- Total income rose 16.21% YoY.
- PAT increased 59.79% YoY to ₹3,444.56 crore.
- Assets Under Management reached ₹3,13,798.39 crore, up 15.26% YoY.
- Basic EPS improved to ₹14.83 from ₹11.46.
- The Board approved a debt resource mobilisation programme for August–October 2026 to support future funding requirements.
Balance Sheet & Capital Position
Shriram Finance further strengthened its capital base following the preferential investment by MUFG Bank, which acquired a 20% equity stake earlier this year. During the quarter, the company utilised ₹37,451.22 crore from the preferential issue proceeds, while the remaining funds were temporarily invested in liquid mutual funds.
Asset Quality & Financial Strength
The company maintained healthy prudential ratios during the quarter.
- Capital Adequacy Ratio: 34.17%
- Gross NPA Ratio: 4.64%
- Net NPA Ratio: 2.33%
- NPA Provision Coverage: 50.99%
- Liquidity Coverage Ratio: 262.54%
Dividend Update
During the quarter, Shriram Finance paid the final dividend of ₹6 per share for FY26. Combined with the interim dividend of ₹4.80 per share, the company’s total dividend for FY26 stood at ₹10.80 per equity share.
Note:
- The quarter reflects broad-based growth in Shriram Finance’s lending franchise, supported by strong disbursements, improving profitability, and a strengthened capital structure following the strategic investment by MUFG Bank.
Risk Analysis
Summary:
- While business momentum remains strong, Shriram Finance continues to operate in a credit-sensitive environment where asset quality, funding costs, and macroeconomic conditions remain key monitoring factors.
Key Risks:
- Rising borrowing costs may affect net interest margins.
- Asset quality could be impacted by economic slowdown.
- Credit demand remains linked to commercial vehicle and MSME activity.
- Regulatory changes for NBFCs may influence capital and provisioning requirements.
Worst Case:
- A deterioration in credit quality combined with slower loan growth and higher funding costs could moderate earnings growth despite the company’s strong capital position.
Risk Level: Medium
Company Commentary
- Net Interest Income increased 33.67% YoY during Q1 FY27.
- Profit After Tax grew 59.79% YoY to ₹3,444.56 crore.
- Assets Under Management expanded to ₹3.14 lakh crore.
- Shriram Finance continues to strengthen its diversified retail lending franchise through commercial vehicle, MSME, two-wheeler, tractor, gold and personal loan businesses.
- The company operates one of India’s largest retail-focused NBFC networks, serving over 103 lakh customers through 3,225 branches nationwide.
Official Exchange Filing: Shriram Finance Limited
