Shriram Finance (SHRIRAMFIN) Q1 25/26 earnings summary

Executive summary

• Disbursements grew 13.01% year-over-year to INR 41,816.75 crore in Q1 FY26, with AUM up 16.62% to INR 2,72,249.01 crore and net interest income rising 12.55% to INR 6,026.43 crore.

• Profit after tax increased 8.84% year-over-year to INR 2,155.73 crore, and EPS for the quarter was INR 11.46, up from INR 10.54 a year ago.

• Total income for Q1 FY26 rose 20.11% year-over-year to INR 11,541.76 crore.

• The company completed the acquisition of 100% equity in Shriram Overseas Investments Limited in May 2025.

• The Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2025.

Financial highlights

• Net interest margin was 8.11% in Q1 FY26, down from 8.79% in Q1 FY25; cost-to-income ratio increased to 29.29% year-over-year.

• Gross stage III assets improved to 4.3% from 5.39% year-over-year; net stage III at 2.57% from 2.71%.

• Credit cost on total assets was 1.64%, down from 1.87% in Q1 FY25.

• Book value per share rose 15.59% year-over-year to INR 310.93; net worth increased to INR 58,865.72 crore.

• Write-offs for the quarter were INR 448 crore; provisions at INR 838 crore.

Outlook and guidance

• Credit cost expected to remain under 2% for the full year.

• Net interest margin targeted at 8.5% by Q4 FY26, with full-year average expected around 8.2%-8.3%.

• Management remains confident of meeting AUM growth guidance, expecting pickup in MSME and other segments.

• Board approved a resource mobilisation plan for debt securities issuance from August 1 to October 31, 2025.

• Forward-looking statements caution that actual results may differ due to risks and uncertainties, including strategy execution and policy changes.