Sundaram Finance has delivered a robust financial performance for the fiscal year ended March 31, 2026. The company reported a 19% increase in profit after tax to Rs. 1,834 crores, while assets under management (AUM) grew by 16.4% to Rs. 59,908 crores. Driven by strong disbursement growth and improved asset quality, the company has declared a 240% final dividend of Rs. 24 per share.
Fiscal Year 2026 Financial Highlights
Sundaram Finance concluded the financial year with strong growth momentum. Disbursements for FY26 reached Rs. 32,321 crores, a 14% increase over the previous year. The fourth quarter was particularly strong, with disbursement growth of 17% to Rs. 8,051 crores. The company’s profitability remained resilient, with profit after tax closing at Rs. 1,834 crores, bolstered by higher dividend income and strong operational performance.
Asset Quality and Operational Efficiency
The company demonstrated prudent management of asset quality, with Gross Stage 3 assets standing at 1.44% and Net Stage 3 assets improving to 0.69% as of March 31, 2026. Operational efficiency also saw a marked improvement, with the cost-to-income ratio refining to 28.71% for the year. Return on assets (ROA) recorded a healthy increase to 3.03%, up from 2.85% in FY25.
Consolidated Performance and Group Outlook
On a consolidated basis, which includes lending, asset management, and general insurance, the group recorded a profit after tax of Rs. 2,059 crores, a 10% growth year-on-year. The asset management business reported AUM of Rs. 77,457 crores, while Royal Sundaram General Insurance achieved a 14% growth in Gross Written Premium to Rs. 4,638 crores. Sundaram Home Finance also contributed to the steady performance, with disbursements growing to Rs. 6,805 crores.
Future Strategy
Management remains optimistic about India’s macroeconomic landscape, citing resilient domestic consumption and sustained public capital expenditure as key growth drivers. Moving forward, the company intends to focus on gaining market share while maintaining its hallmark asset quality and disciplined operating expenses to ensure sustainable profit growth in the coming fiscal periods.
Source: BSE
