Shriram Finance reported robust financial results for the fourth quarter and financial year ended March 31, 2026, with profit after tax surging 40.86% year-on-year to ₹3,013.57 crores. The company's assets under management crossed the ₹3 lakh crore milestone, while a landmark strategic partnership with MUFG Bank further strengthened its capital base. The results were discussed during the Q4 FY26 earnings conference call held on April 24, 2026, attended by Executive Vice Chairman Umesh G. Revankar, Managing Director and CEO Parag Sharma, Joint Managing Director and CFO S. Sunder, and Investor Relations Head Sanjay Kumar.

Key Financial Highlights

The company's Q4 FY26 performance reflected broad-based growth across core financial metrics. Disbursements grew 14.91% year-on-year to ₹50,952.30 crores in Q4 FY26, compared to ₹44,340.57 crores in Q4 FY25. The following table summarises the key financial metrics:

AUM registered sequential growth of 3.62% over Q3 FY26. The improvement in the cost-to-income ratio was aided by a strong net interest income in the current quarter. Management noted that the elevated cost-to-income ratio in Q3 FY26 was primarily attributable to an incremental impact of ₹196.95 crores on gratuity and long-term compensated absences, representing an increase in past service costs due to a change in the definition of wages under the new Labour Code.

Liability Profile and Liquidity

On the liability side, borrowings were muted during the quarter, with overall liabilities standing at ₹2,50,690 crores — broadly unchanged from the December quarter. The cost of liabilities declined marginally from 8.69% in the previous quarter to 8.59%, compared to 8.96% as of March 2025. The incremental cost of funds stood at 7.2%. The liquidity coverage ratio was at 323.17%, compared to 335% in the December quarter. Overall liquidity stood at approximately ₹13,000 crores, described as sufficient for more than two months of liability repayment. Management noted that liquidity was deliberately moderated in anticipation of a large capital inflow of ₹40,000 crores targeted for the first week of April. The leverage ratio stood at 3.82 times, with the capital adequacy ratio post equity infusion at 34%.

MUFG Bank Strategic Investment

A defining development of the quarter was the completion of a preferential allotment to MUFG Bank Limited on April 8, 2026, pursuant to an investment agreement dated December 19, 2025. The key details of this transaction are as follows:

Management described this as a transformative milestone that significantly bolsters capital adequacy and provides a robust foundation for long-term strategic expansion. On the Board composition, management confirmed that new directors have joined the Board, with some personnel taking on executive roles, though not at the senior management level.

Dividend Announcement

The Board of Directors recommended a final dividend of ₹6 per equity share of face value ₹2 each (fully paid), representing 300% for financial year 2025-26, subject to approval by members at the ensuing 47th Annual General Meeting. This is in addition to the interim dividend of ₹4.8 per equity share declared on October 31, 2025, bringing the total dividend for FY26 to ₹10.8 per share.

Macroeconomic Context and Sectoral Trends

Management provided a detailed overview of the macroeconomic environment. India's GDP growth slowed to 7.8% in Q3 FY26, down from 8.4% in the previous quarter, while the FY26 growth projection was revised upward to 7.6% from 7.1%. The IMF projected a growth rate of 6.5% for FY27. Retail inflation rose to 3.4% in March 2026, up from 3.21% in February, while wholesale price-based inflation accelerated to 3.88% in March from 2.13% in February. The RBI's repo rate was noted at 5.25%, with a neutral policy stance, a GDP forecast of 6.9% for FY26-27, and a CPI inflation forecast of 4.6% for FY26-27.

On the automobile sector, key volume data for Q4 FY26 and full-year FY26 were highlighted:

GST collections grew 8.8% to over ₹2 lakh crores in March 2026, compared to ₹1.83 lakh crores in March 2025.

Outlook and Management Guidance

Management guided for 18% AUM growth in FY27, with a budgeted net interest margin of 8.5% and a cost-to-income ratio in the range of 26% to 27%. On the MSME segment, a cautious growth outlook of 13% to 15% was indicated, with management citing geopolitical uncertainties and the impact of US tariffs as key factors warranting a conservative stance. Passenger vehicle financing was projected to grow at more than 20%, while gold lending growth was guided at more than 30%. Commercial vehicle AUM growth was projected at 15% to 18%. Management noted that new vehicle financing currently constitutes approximately 15% to 20% of disbursements and could increase by a further 5 to 10 percentage points. The Board also recommended the continuation of Parag Sharma as Managing Director and CEO for the next five years, subject to shareholder approval at the AGM.

Shriram Finance Limited has launched its Second 100 Days Campaign - Saksham Niveshak to assist shareholders in claiming unclaimed dividends and updating their Know Your Customer (KYC) details. The campaign, running from April 01, 2026 to July 09, 2026, follows specific directions from the Investor Education and Protection Fund (IEPF) Authority dated March 27, 2026.

Campaign Details and Timeline

The Second 100 Days Campaign serves as a continuation of the company's previous initiative that ran from July 28, 2025 to November 06, 2025. The current campaign specifically targets shareholders who have unclaimed dividends in the company's Unclaimed Dividend Account and those who need to update their KYC information.

KYC Requirements and Compliance

Shareholders who have not updated their KYC details are advised to complete the necessary documentation during the campaign period. The required KYC information includes bank mandate details, Permanent Account Number (PAN), mobile number, email ID, and communication address. The company has partnered with Integrated Registry Management Services Private Limited as its Registrar and Share Transfer Agent (RTA) to facilitate this process.

Legal Framework and Transfer Requirements

Under Sections 124(5) and 124(6) of the Companies Act, 2013, companies are mandated to transfer unclaimed dividends to the IEPF Authority after a period of 7 years. Additionally, equity shares for which dividends have remained unclaimed for 7 consecutive years must also be transferred to the IEPF Authority.

Contact Information and Process

Shareholders can claim their dividends and shares by submitting Form No. IEPF-5, available on the Ministry of Corporate Affairs website. Documents should be sent to the company's Nodal Officer at secretarial@shriramfinance.in or to the RTA at their Chennai office located at 2nd Floor, Kences Towers No. 1 Ramakrishna Street, North Usman Road, T Nagar, Chennai - 600 017.

The company has published this notice in Financial Express (English Version - Mumbai and Chennai editions) and Dinakaran (Tamil Version - All editions) on April 29, 2026. Complete details and KYC update links are available on the company's website at www.shriramfinance.in . The company has clarified that no liability will lie against it for unclaimed dividends and equity shares transferred to the IEPF Authority.