Shriram Finance reported a strong Q3 FY’26, with positive economic indicators supporting growth. Disbursements grew by 14.17% Y-o-Y, reaching INR48,645 crores. AUM increased by 14.63% to INR2,91,709.03 crores. Net interest income rose by 16.17% to INR6,764.09 crores. The company anticipates continued growth in vehicle sales and aims to maintain net interest margins while managing funding costs and credit risk. Focus remains on commercial and passenger vehicle financing.
Financial Performance
In Q3 FY’26, Shriram Finance showcased a robust performance:
- Disbursement Growth: 14.17% Y-o-Y, reaching INR48,645 crores (versus INR42,606 crores in Q3 FY’25).
- AUM Growth: 14.63% year-over-year, totaling INR2,91,709.03 crores.
- Net Interest Income: Recorded a 16.17% Y-o-Y increase, reaching INR6,764.09 crores.
- Net Interest Margin (NIM): 8.58% compared to 8.48% in Q3 FY’25.
- Profit After Tax (PAT): Grew by 21.21% year-over-year to INR2,521.67 crores.
- Earnings Per Share (EPS): Stood at INR13.40.
Asset Quality
Asset quality saw improvements:
- Gross Stage 3: Improved to 4.54%.
- Net Stage 3: Improved to 2.38%.
- Credit Cost on Total Assets: Stood at 1.62%.
Liability Management
- Total Liabilities: As of December 31, 2025, reached INR2,51,732 crores.
- Cost of Liabilities: Reduced by 14 basis points to 8.69%.
- Liquidity Coverage Ratio: Maintained well above statutory requirements at around 335%.
- Leverage Ratio: Stood at 4.05.
Strategic Outlook
- The company aims to retain existing customers with good track records by offering competitive rates.
- Focus remains on vehicle financing (commercial and passenger) and expanding into larger MSME enterprises with secured lending.
- Shriram Finance anticipates continued growth in vehicle sales, driven by the Indian GDP growth and increasing rural consumption.
- Partnership with MUFG leading to credit rating upgrades, anticipating lower rates.
Segment Performance
- LCV and SCV: Stronger traction due to changing rural consumption patterns.
- Heavy Commercial Vehicles (HCVs): Growth dependent on infrastructure spending.
- Gold Loans: Expecting higher growth and volume increases.
- Farm Equipment: Expects 5% of AUM.
Source: BSE
