Shriram Finance Q2 net jumps 59 pc, confident of maintaining asset growth

Mumbai, Oct 23 (PTI) Shriram Finance Ltd on Friday reported a 59 per cent increase in consolidated net profit to Rs 3,684 crore in the second quarter of the current fiscal.

The flagship company of diversified conglomerate Shriram Group had earned a net profit of Rs 2,314 crore in the second quarter of the preceding financial year.

​On a standalone basis, the non-bank lender reported a net profit of Rs 3,677 crore against Rs 2,307 crore in the second quarter of FY26.

The core net interest income was up 38 per cent to Rs 8,661 crore, helped by a sharp expansion in the net interest margin to 9.52 per cent from 8.19 per cent year-ago, and a 17 per cent growth in the assets under management.

Its vice chairman Umesh Revankar said the NIMs widened because

of the Rs 39,618 crore capital raise from Japan’s MUFG earlier this year, and hinted that the number has reached a peak now.

The NIMs will be elevated for the remaining part of the fiscal, even though it may come off the present levels, he said, adding that the advantage of the capital infusion on the NIM will wear off over the next 2-3 quarters.

When asked about the impact of the El Nino-induced deficient rainfall, he said the lender had already turned cautious at the beginning of the fiscal itself, which resulted in the AUM growth coming at about 17 per cent levels as against the 18 per cent target.

The NBFC will be able to maintain the current AUM growth of about 17 per cent for the second half of FY27 as well, he added, pointing to the ongoing festival season and overall demand pipeline as the drivers.

Specifically, the company is aiming to grow faster in the small business lending and gold loans segment, he said, adding that it will also be hiring more people to create a team to undertake supply chain and leasing finance activities.

Contrary to the experiences of some of its peers, Revankar said it does not see any stress on the gold loans vertical.

There has not been any impact on the asset quality of the NBFC because of the ongoing stress factors, he said. Shriram Finance’s share of the GS-3 assets was stable at 4.65 per cent, he said.

The company’s asset quality remained nearly flat with gross Non-Performing Assets (NPAs) at 4.65 per cent of gross advances as of September 30, 2026, against 4.57 per cent by the end of the second quarter of the previous fiscal.

However, net NPAs moderated to 2.31 per cent of the advances, from 2.49 per cent at the end of September last year.

Shares of Shriram Finance closed 3.67 per cent lower at Rs 867 apiece on the BSE on Friday, as against a 0.17 per cent correction on the benchmark. PTI AA DP SHM

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