Sundaram Finance reported strong financial results for the first quarter of FY27 (ending June 30, 2026). Profit after tax surged by 22% year-on-year to ₹522 crore. Disbursements grew 22% to ₹8,947 crore, while Assets Under Management (AUM) increased by 17% to ₹62,275 crore, underscoring robust business expansion and operational efficiency.
Sundaram Finance Reports Robust Q1 FY27 Performance
Sundaram Finance Ltd. (SFL) has announced its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, showcasing a period of strong growth and improved asset quality. The company’s profit after tax recorded a significant 22% increase, reaching ₹522 crore compared to the same period last year. This performance was driven by healthy growth across its key business segments.
Key Financial Highlights
- Disbursements: Grew by 22% to ₹8,947 crore in Q1 FY27, up from ₹7,310 crore in Q1 FY26.
- Assets Under Management (AUM): Increased by 17% to ₹62,275 crore as of June 30, 2026, compared to ₹53,278 crore in the previous year.
- Net Interest Income (NII): Saw a 19% rise, reaching ₹925 crore in Q1 FY27 from ₹781 crore in Q1 FY26.
- Profit from Operations: Grew by 37% to ₹598 crore in Q1 FY27, from ₹436 crore in Q1 FY26.
- Return on Assets (ROA): Stood at 3.06% for Q1 FY27, an improvement from 2.91% in Q1 FY26.
- Capital Adequacy Ratio: Remained strong at 18.5%.
Asset Quality Metrics
The company also reported improvements in asset quality. Gross stage 3 assets stood at 1.71% as of June 30, 2026, with a provision cover of 49%, compared to 1.91% with 44% provision cover as of June 30, 2025. Net stage 3 assets closed at 0.88%, down from 1.08% in the prior year’s comparable quarter.
Consolidated Performance and Outlook
The consolidated results reflect the strong performance of SFL’s subsidiaries in asset management, general insurance, and home finance. The Board of Directors expressed confidence in the company’s steady growth strategy, commitment to asset quality, and consistent profitability. The management highlighted a supportive operating environment despite external uncertainties, with Team Sundaram well-positioned to deepen its market presence.
Source: BSE
