Shriram Finance (SHRIRAMFIN) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 saw strong growth in disbursements, AUM, and profitability, supported by robust economic indicators and controlled inflation in India.

• Net Interest Income for Q3 FY26 rose 16.17% YoY to ₹6,764.09 crore; PAT (excluding one-time gain) up 21.21% YoY to ₹2,521.67 crore.

• Vehicle finance, especially in rural and suburban areas, continued to drive business momentum, with significant growth in commercial vehicles, passenger vehicles, two-wheelers, and tractors.

• Raised INR 396,179.8 mn via preferential issue to MUFG Bank Ltd, pending regulatory approval; MUFG to become a minority public shareholder upon completion.

• Multiple credit rating upgrades from CARE, CRISIL, ICRA, S&P, Moody's, and Fitch during the quarter.

Financial highlights

• Disbursement growth of 14.17% YoY, reaching INR 48,645 crores in Q3 FY26; AUM grew 14.63% YoY to INR 291,709 crores.

• Net interest income up 16.17% YoY to INR 6,764 crores; net interest margin at 8.58%.

• PAT (excluding exceptional items) up 21.21% YoY to INR 2,521.67 crores; EPS for the quarter was Rs 13.40.

• Book value per share up 12.85% YoY to Rs 330.04.

• 9M FY26 total income up 17.27% YoY to Rs 356,500.7 mn; PAT (excl. exceptional items) up 13.90% YoY to Rs 69,845.8 mn.

Outlook and guidance

• Management expects continued strong growth in vehicle finance and MSME, with plans to increase ticket size and expand secured lending.

• Net interest margins are expected to remain stable or improve slightly, with guidance of 8.5%-9%.

• ROE and ROA are projected to improve as funding costs decline and credit quality strengthens.

• Board approved resource mobilisation plan for debt securities issuance from Feb 1 to Apr 30, 2026.

• Company continues to monitor regulatory changes and will adjust accounting as needed for new labour laws.