Sundaram Finance Q3 Results: Higher income lifts profit, board declares ₹16 dividend

CNBC TV18

Sundaram Finance Ltd posted a strong set of numbers for the December quarter, with net profit rising 18.9% year-on-year to ₹541.4 crore, compared with ₹455.5 crore in the same period last year. The performance

was aided by higher dividend income and steady lending momentum across key segments.

Net interest income increased 19% year-on-year to ₹913 crore, reflecting healthy growth in the loan book. The company recorded disbursements of ₹8,847 crore during the quarter, marking a 14% increase, while cumulative disbursements for the first nine months of FY26 stood at ₹24,270 crore.

Assets under management expanded 16% year-on-year to ₹58,236 crore, supported by improving consumption trends and stable demand conditions.

Asset quality remained largely steady, with gross stage 3 assets at 1.91% and net stage 3 assets at 1.06%, marginally higher than a year ago. Return on assets improved to 2.67% for the nine-month period, while the capital adequacy ratio stood at a healthy 19.1%, underscoring balance sheet strength.

The board declared an interim dividend of 160%, amounting to ₹16 per share. The company has fixed February 6, 2026, as the record date for the interim dividend, which will be paid on or after February 25, 2026.

The company also announced the reappointment of Rajiv C Lochan as Managing Director for a five-year term and A N Raju as Joint Managing Director for four years, both effective April 1, 2026.

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Commenting on the results, Executive Vice Chairman Harsha Viji said the quarter benefited from macro tailwinds, including robust GDP growth and the impact of GST 2.0 reforms, even as private sector capital expenditure remained muted. Managing Director Rajiv Lochan noted that rural sentiment is expected to stay buoyant, with urban demand likely to improve further on the back of GST rate cut benefits, positioning the company for sustained growth ahead.

As of 2:34 pm, shares of Sundaram Finance Ltd were trading 5.25% higher at ₹5,218.50 on the NSE, extending gains after the company reported strong Q3 earnings.