Sundaram Finance (SUNDARMFIN) Q4 25/26 earnings summary

Executive summary

• Assets under management (AUM) grew 16% year-over-year to ₹59,908 crore as of March 31, 2026, with strong disbursement growth and improved profitability.

• Net profit rose 19% to ₹1,834 crore in FY26, driven by higher yields, cost control, and increased dividend income.

• Audited standalone and consolidated financial results for the year ended 31 March 2026 were approved, with auditors expressing an unmodified opinion.

• A final dividend of ₹24 per share was recommended, bringing the total dividend for FY26 to ₹40 per share (400%).

• Asset quality remained robust, with gross stage 3 assets stable at 1.44% and provision cover improving to 53%.

Financial highlights

• Net interest income increased 21% to ₹3,376 crore in FY26; Q4FY26 NII up 20% year-over-year.

• Standalone total income for FY26 was ₹7,734.48 crore, up from ₹6,596.07 crore in FY25; consolidated total income was ₹9,873.12 crore, up from ₹8,562.98 crore.

• Standalone PAT for FY26 was ₹1,834.17 crore (up from ₹1,542.65 crore); consolidated PAT was ₹2,058.86 crore (up from ₹1,879.44 crore).

• Cost-to-income ratio improved to 28.71% from 30.80% in FY25.

• Return on assets (ROA) rose to 3.03% from 2.85% in FY25; return on equity (ROE) at 17.5% versus 16.3% last year.

Outlook and guidance

• Management highlights prudent focus on asset and customer segment mix to optimize margins.

• The Board declared a strong dividend payout, reflecting confidence in future cash flows and profitability.

• Economic activity and cash flows improved in H2 FY26, supporting asset quality stabilization.