Shriram Finance (SHRIRAMFIN) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 disbursements were ₹54,079.02 crore, up 25.71% YoY; AUM reached ₹329,021.72 crore, up 16.96%, and standalone PAT rose 59.37% to ₹3,677.03 crore.

• Consolidated Q2 PAT was ₹3,683.81 crore versus ₹2,314.16 crore YoY; basic EPS was ₹15.66 versus ₹12.30.

• FY27 AUM growth guidance was moderated to 15%-17% from an initial 18%, amid caution in drought-affected areas; long-term credit-cost guidance remained 2%.

Financial highlights

• Q2 total income was ₹13,798.91 crore, up 15.79% YoY; NII rose 38.20% to ₹8,661.04 crore.

• Q2 standalone PAT was ₹3,677.03 crore versus ₹2,314.16 crore YoY; EPS was ₹15.63 versus ₹12.27.

• H1 total income was ₹27,211.02 crore, NII ₹16,716.74 crore and PAT ₹7,121.59 crore, up 16.00%, 35.98% and 59.57%, respectively.

• H1 EPS was ₹30.46, up 28.36% YoY; loan losses and provisions were ₹3,340.66 crore, up 27.55%.

Outlook and guidance

• FY27 AUM growth expected at 15%-17%, with cautious lending in drought-prone areas; demand remained healthy overall.

• Long-term credit-cost guidance remained 2%; temporary increases of 30-40 bps may last one or two quarters before normalization.

• NIM expected near current levels for one or two quarters, then trend toward ~9% medium term and ~8.5% long term, depending on rates and portfolio mix.

• Medium- to long-term cost-to-income guidance was ~25%; technology investment may affect operating expenses.

• Stronger second-half performance expected during the seasonally busy period, despite weak monsoon and West Asia-related headwinds.