Sundaram Finance Limited reported a standalone net profit of ₹1,834 crore for the financial year ended March 31, 2026, an increase of 19% from ₹1,543 crore in the previous year. The board recommended a final dividend of ₹24 per share (240%) for FY26, subject to shareholder approval. The assets under management (AUM) grew 16% to ₹59,908 crore, while disbursements for the year rose 14% to ₹32,321 crore.

Dividend Declaration

The Board of Directors recommended a final dividend of ₹24 per share (240%) for the financial year ended March 31, 2026, on the paid-up capital of ₹111.10 crore. This, together with the interim dividend of ₹16 per share (160%) paid on February 25, 2026, will make a total dividend of ₹40 per share (400%) for FY26. The dividend, if approved by the shareholders, will be paid on or after July 23, 2026 to those shareholders whose names appear on the Register of Members as on the record date of July 6, 2026.

Standalone Performance

Net interest income (NII) grew by 21% to ₹3,376 crore in FY26 from ₹2,793 crore in FY25. Profit before tax and exceptional items increased, driven by higher dividend income. The company considered ₹75 crore under "Exceptional Items" for the incremental impact of the new Labour Codes. Return on assets (ROA) improved to 3.03% in FY26 from 2.85% in FY25, while return on equity (ROE) stood at 17.49% compared to 16.30% in the previous year.

Asset Quality and Capital Adequacy

Gross stage 3 assets stood at 1.44% with a provision cover of 53% as of March 31, 2026, compared to 1.44% with a cover of 49% a year earlier. Net stage 3 assets improved to 0.69% from 0.75%. The Gross and Net NPA, as per RBI norms for NBFCs, were 2.14% and 1.27% respectively, against 2.17% and 1.38% in FY25. The capital adequacy ratio was 19.1% (Tier I – 17.2%), down from 20.4% (Tier I – 17.4%) in the previous year.

Consolidated Results and Group Performance

Consolidated net profit rose 10% to ₹2,059 crore in FY26 from ₹1,879 crore in FY25, after considering ₹76 crore under exceptional items. Group companies performed strongly, with the asset management business reporting an AUM of ₹77,457 crore and profits of ₹174 crore. Royal Sundaram General Insurance reported a Gross Written Premium of ₹4,638 crore, a growth of 14%, while Sundaram Home Finance posted a profit of ₹282 crore.

Sundaram Finance Limited has approved a proposal to raise up to ₹500 crore in additional Tier 2 capital during FY 2026-27. The funds will be mobilized through the issuance of Subordinated Non-Convertible Debentures on a private placement basis, in one or more tranches. This move aims to strengthen the company's capital base.

The decision was taken at a Board Meeting held on May 25, 2026. The meeting commenced at 10:00 A.M. and concluded at 1:15 P.M. The approval is part of the company's strategy to augment its capital adequacy through subordinated debt instruments.

The disclosure was made under Regulation 30 and Regulation 51 read with Schedule III of the SEBI (LODR) Regulations, 2015. The intimation was submitted to the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited.

Key Details of Fund Raising