Shriram Finance stock: Q2 profit rises as margins and AUM expand

Published on 11/05/2026 at 10:55 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Shriram Finance stock posted a 59.4% profit increase in its September quarter. Funding costs eased as assets under management expanded.

Profit growth meets stronger lending metrics

Net interest income increased as lower funding costs supported earnings.
Assets under management expanded, led by vehicle and gold lending.
Asset quality was mixed, with gross stage-three assets rising while net stage-three assets improved.
The board declared an interim dividend for fiscal 2027.

Shriram Finance, INE721A01013, Illustration mit AI erstellt.

Shriram Finance reported a 59.4% year-on-year increase in standalone net profit to INR 3,677 crore for the quarter ended September 30, 2026. The result was reported on October 23 and covered by The Economic Times.

Margins benefit from lower funding costs

Net interest income rose 38% to INR 8,661 crore from INR 6,267 crore a year earlier. Net interest margin improved to 9.52% from 8.19%, while management told The Economic Times that the margin could remain around 9% over the next two quarters.

Operating profit increased 53.3% to INR 6,809 crore, and the cost-to-income ratio improved to 22.52% from 27.76%. The earnings increase came despite loan losses and provisions rising 41% to INR 1,877 crore.

Loan growth and credit quality

Assets under management grew 17% year on year and 4.9% sequentially to INR 3.29 lakh crore at the end of September. The vehicle and equipment portfolio accounted for 79.46% of total assets under management. Gold loans grew 68.2% year on year to INR 8,974 crore, while passenger-vehicle loans increased 20% to INR 71,542 crore.

Credit indicators developed unevenly. The gross stage-three ratio rose to 4.65% from 4.57% a year earlier and 4.64% in June. The net stage-three ratio improved to 2.31% from 2.49% a year earlier, supported by a higher provision coverage ratio.

Dividend sets the next shareholder date

The board declared an interim dividend of INR 6.50 per share for fiscal 2027 and set October 29 as the record date. For investors, the quarter combines strong earnings momentum and lending growth with continued attention on provisions and gross asset quality.

The latest Shriram Finance stock coverage remains focused on earnings, lending trends and credit costs.

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