Shriram Finance Limited delivered a robust performance for the quarter and financial year ended March 31, 2026. The company reported a 40.86% year-on-year growth in Profit After Tax (PAT) for Q4, alongside a 14.85% increase in Assets Under Management (AUM). The successful INR 396.18 billion preferential allotment of shares to MUFG Bank Limited significantly bolstered the company’s capital adequacy, setting a strong foundation for future strategic expansion and long-term growth.
Financial Performance Highlights
For the fourth quarter of fiscal year 2026, Shriram Finance demonstrated strong financial momentum. The company reported a Profit After Tax of INR 3,013.57 crores, marking a significant 40.86% increase compared to the same period in the previous year. Net Interest Income (NII) also showed healthy growth, reaching INR 6,994.08 crores, a 15.58% improvement year-on-year. Net Interest Margins (NIM) for the quarter stood at 8.61%.
Strategic Milestone: MUFG Partnership
A transformative highlight of the year was the completion of the preferential allotment of equity shares to MUFG Bank Limited. This landmark transaction, valued at INR 396.18 billion, resulted in MUFG Bank acquiring a 20% stake in Shriram Finance on a fully diluted basis. This capital infusion significantly strengthened the company’s capital adequacy, with the ratio projected to reach 34% post-equity infusion, providing a robust base for future operations.
Operational Growth and Asset Quality
Disbursements for the quarter aggregated to INR 50,952.30 crores, reflecting a 14.91% year-on-year growth. The company’s AUM reached INR 3,02,273.75 crores as of March 31, 2026. Asset quality remained resilient, with gross Stage 3 assets at 4.58% and net Stage 3 assets at 2.33%. Management indicated a cautious yet optimistic outlook for fiscal year 2027, maintaining a growth target of approximately 18% despite potential macroeconomic headwinds.
Dividend Declaration
Reflecting the company’s strong performance, the Board of Directors has recommended a final dividend of INR 6 per equity share (face value of INR 2), representing a 300% payout for the financial year 2025-26. This is in addition to the interim dividend of INR 4.8 per share previously declared in October 2025, bringing the total dividend for the financial year to INR 10.8 per share.
Source: BSE
