Shriram Finance on Friday reported a 60 per cent rise in standalone net profit for the quarter ended June 2026 (Q1FY27) at ₹3445 crore, compared to ₹2,156 crore in the same quarter last year. The profit growth came from growth in both core net interest income and in other income.

Net Interest Income for Q1FY27 increased by around 34 per cent and stood at ₹8,056 crores as against ₹6,026 crores in the same period of the previous year.

Besides brisk growth of 21 per cent and 19 per cent in passenger vehicle and commercial vehicle finance respectively, the interest income was driven by robust growth of 45 per cent in gold loans. Other income also saw a significant 44 per cent growth and stood at ₹1105 crore.

Commercial vehicle AUM made up the largest share at ₹1,47,034 crore with a 47 per cent share. Passenger vehicle AUM stood at ₹68,650 crore (22 per cent). Construction equipment AUM saw a 25 per cent decline in the quarter.

Total Assets under Management as of June 30 increased by 15.3 per cent and stood at ₹313,798 crores as compared to ₹272,249 crores as of June 30, 2025 and ₹302,274 crores as of March 31, 2026. The company had projected a AUM growth of 18 per cent for FY27 in its earnings call in April.

Asset quality saw mild strain on a gross basis but was stable in net terms. Gross NPA (or Gross Stage 3 assets) came in at 4.64 per cent as of June 2026 compared to 4.58 per cent during the March quarter and 4.53 per cent in June 2025. Net NPA remained unchanged at 2.33 per cent on a sequential basis but was down from 2.57 per cent in the same quarter last year. Detailed analysis shows that asset quality deterioration came largely from the construction equipment and MSME segments.

Loan losses and provisions during the quarter stood at ₹1,463 crore, compared to ₹1,286 crore in June 2025.

During the quarter, MUFG Bank, the Japanese banking giant and subsidiary of Mitsubishi UFJ Financial Group, completed its acquisition of a 20 per cent equity stake in Shriram Finance, making it the largest cross-border investment in India’s financial services sector. In the quarter, the proceeds of ₹37,451.2 crore have been utilised and unutilised proceeds of ₹2,166.7 crore were invested in liquid mutual funds, the company said.

Umesh Revankar, Executive Vice-Chairman, Shriram Finance, told businessline that despite the macroeconomic disruptions including the West Asia war, net interest margins (NIMs) have grown with the cost of funds having come down after the MUFG deal. “The Indian economy is still growing so we are not yet changing our outlook for FY27, but El Nino is a factor we are going to have to watch for, he adds.

Besides bringing down cost of funds, Revankar also expects Shriram Finance to leverage MUFG’s relationship with OEMs, going forward. “Nothing concrete yet but we have been in touch with few partners,” he adds.

Shriram Finance is the flagship company of the Shriram group which has significant presence in Consumer Finance, Life Insurance, General Insurance, Stock Broking and Distribution businesses. Shriram Finance caters to the needs of Small Road Transport Operators and small business owners and is a leader in organised financing of pre-owned commercial vehicles and two-wheelers. It counts a total of 3,225 branches as of June 2026.

Published on July 24, 2026