Shriram Finance (SHRIRAMFIN) Q4 25/26 earnings summary

Executive summary

• Q4 FY26 and FY26 saw strong financial and operational performance, with AUM surpassing ₹3 trillion and robust growth in revenue, profitability, and disbursements.

• MUFG Bank completed a transformative capital infusion, acquiring a 20% stake via a ₹396.2 billion preferential allotment, significantly strengthening capital adequacy.

• Credit ratings were upgraded to AAA/Stable by ICRA, CRISIL, and India Ratings, and Fitch upgraded to BBB-/Stable.

• Management expects steady growth for FY27 despite macro uncertainties, with cautious optimism and a resource mobilisation plan in place.

• Disinvestment of Shriram Housing Finance Limited and Bharath Investments Pte Ltd completed, impacting exceptional items and discontinued operations.

Financial highlights

• Disbursements grew 14.91% YoY to ₹509,523 million in Q4 FY26; AUM increased 14.85% YoY to ₹3,022,737.5 million.

• Q4 FY26 net interest income rose 15.58% YoY to ₹69,940.8 million; PAT increased 40.86% YoY to ₹30,135.7 million; EPS up 40.77% YoY to ₹16.02.

• FY26 total income (excl. exceptional items) up 15.09% YoY to ₹481,779.8 million; net interest income up 14.09% YoY to ₹260,514.4 million.

• FY26 PAT (excl. exceptional items) up 20.87% YoY to ₹99,981.5 million; EPS (excl. exceptional items) up 20.80% YoY to ₹53.15.

• Final dividend of ₹6 per share recommended, total FY26 dividend at ₹10.80 per share.

Outlook and guidance

• AUM growth for FY27 is budgeted at 18%, with net interest margin targeted at 8.5%.

• Strengthened capital base and upgraded credit ratings position the company for long-term strategic expansion.

• MSME growth expected at 13%-15%, with a cautious stance due to macro uncertainties.

• Management will revisit growth and credit cost guidance after Q1, depending on monsoon and fuel price developments.

• Resource mobilisation plan for FY27 includes debt securities, ECBs, and securitisation.