Shriram Finance (SHRIRAMFIN) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 saw strong business performance with double-digit growth in total income, net interest income, PAT, and EPS, alongside robust AUM expansion and improved profitability year-over-year and sequentially.

• The macroeconomic environment was favorable, with accelerated GDP growth, low inflation, and rising GST collections supporting credit demand.

• Interim dividend of INR 4.8 per share (240%) declared, with a record date of November 7, 2025.

• EPS for Q2 FY26 was INR 12.27, up 11.34% year-over-year.

• Book value per share increased 15.80% year-over-year to INR 321.13.

Financial highlights

• Disbursements grew 10.24% YoY to INR 49,019.17 crore; AUM rose 15.74% YoY to INR 2,813,094.6 crore.

• Net interest income increased 11.77% YoY to INR 6,266.84 crore; net interest margin was 8.19% (down YoY, up QoQ).

• PAT grew 11.39% YoY to INR 2,307.18 crore; consolidated PAT at INR 2,314.16 crore.

• Gross Stage 3 assets at 4.57%; Net Stage 3 at 2.49%.

• Cost-to-income ratio at 27.76%; ROA at 2.89%; ROE at 15.40%; CRAR at 20.68%.

Outlook and guidance

• Net interest margin expected to reach 8.5% by Q4 FY26, with full-year average between 8.25%-8.3%.

• AUM growth for H2 expected to be 2% higher than H1, with strong October demand and positive rural trends.

• No material impact on NIMs anticipated from business mix changes; focus remains on margin protection.

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

• Board approved resource mobilisation plan for debt securities and other borrowings from November 1, 2025, to January 31, 2026.