Shriram Finance Boosts Employee Ownership with 1.71 Lakh Equity Share Allotment

Shriram Finance Limited , a prominent player in the financial services sector, has taken a significant step to enhance employee engagement and ownership. The company recently announced the allotment of 1,71,984 equity shares to 120 employees under its Employee Stock Option Scheme (ESOS).

Key Details of the Share Allotment

Aspect	Details
Scheme Name	Shriram Finance Limited Employee Stock Option Scheme 2023 (No.1)
Allotment Date	November 11, 2025
Number of Shares Allotted	1,71,984
Face Value per Share	Rs. 2.00
Exercise Price per Share	Rs. 38.71
Premium per Share	Rs. 36.71
Number of Employees Benefited	120

Impact on Share Capital

The allotment has resulted in an increase in the company's paid-up share capital:

Metric	Before Allotment	After Allotment
Paid-up Share Capital	Rs. 3,76,22,16,380.00	Rs. 3,76,25,60,348.00
Total Issued Shares	188,11,08,190	188,12,80,174

Additional Information

The newly issued shares will rank pari-passu with the existing shares of the company.
The allotment was approved by the ESOP Allotment Committee on November 11, 2025.

This move by Shriram Finance aligns with the trend of companies using employee stock options as a tool for talent retention and motivation. By offering equity ownership, the company aims to align employee interests with those of the shareholders, potentially leading to increased productivity and long-term commitment.

The allotment under the ESOS 2023 (No.1) demonstrates Shriram Finance's commitment to its human capital. As the financial services sector continues to evolve, such initiatives may play a role in attracting and retaining talent in a competitive market.

Investors and market watchers may view this development as a sign of the company's focus on employee welfare and long-term growth strategies. However, it's important to note that the impact of such allotments on the company's overall performance and stock price typically unfolds over time.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.96%	+0.61%	+5.89%	+31.26%	+36.29%	+309.22%

Shriram Finance Limited , a leading non-banking financial company, has reported a robust performance for the second quarter of fiscal year 2026, with significant growth in key financial metrics and an improvement in asset quality.

Financial Highlights

The company's profit after tax (PAT) for Q2FY26 stood at ₹2,307.18 crores, marking an 11.39% year-on-year growth compared to ₹2,071.26 crores in Q2FY25. This impressive growth in profitability underscores Shriram Finance's resilience and effective business strategies in a dynamic financial landscape.

Shriram Finance's assets under management (AUM) saw a substantial increase of 15.74%, reaching ₹2,81,309.46 crores as of September 30, 2025, up from ₹2,43,042.55 crores a year ago. This growth in AUM reflects the company's expanding market presence and customer base.

Key Performance Indicators

Metric	Q2FY26	Q2FY25	YoY Change
Net Interest Income	₹6,266.84 crores	₹5,606.74 crores	11.77%
Net Interest Margin	8.19%	8.74%	-55 bps
Disbursements	₹43,019.17 crores	₹39,021.63 crores	10.24%
Gross Stage 3 Assets	4.57%	5.32%	-75 bps
Net Stage 3 Assets	2.49%	2.64%	-15 bps

The company's net interest income grew by 11.77% year-on-year to ₹6,266.84 crores, indicating strong core business performance. However, the net interest margin saw a slight decrease to 8.19% from 8.74% in the previous year.

Improved Asset Quality

Shriram Finance demonstrated significant improvement in its asset quality. The gross stage 3 assets decreased to 4.57% from 5.32% in the previous year, while net stage 3 assets reduced to 2.49% from 2.64%. This improvement reflects the company's effective risk management strategies and robust collection mechanisms.

Dividend Declaration

The Board of Directors has declared an interim dividend of ₹4.8 per share (240%) for FY26, with the record date set as November 7, 2025. This dividend declaration underscores the company's commitment to delivering value to its shareholders.

Operational Performance

Disbursements for Q2FY26 grew by 10.24% year-on-year to ₹43,019.17 crores, indicating strong demand across various segments. The company's strategic focus on diversifying its product portfolio and expanding its geographical presence has contributed to this growth.

Management Commentary

During the earnings call, Mr. Umesh G. Revankar, Executive Vice Chairman of Shriram Finance, expressed optimism about the company's performance and future outlook. He highlighted the strong demand observed in October across various vehicle segments, particularly in commercial vehicles and two-wheelers.

Mr. Revankar also noted that the company has been cautious in the MSME segment, especially post the US tariff implementation, but emphasized that their exposure is primarily to service providers rather than manufacturers.

Outlook

The management expects higher growth in Q3FY26, driven by strong October demand across vehicle segments. They anticipate that the rural economy will continue to perform well, supported by good monsoons and government initiatives.

Shriram Finance's strategic reduction of excess liquidity and focus on optimizing its borrowing mix are expected to contribute to improved margins in the coming quarters. The company remains committed to maintaining a balanced approach to growth while ensuring robust asset quality.

In conclusion, Shriram Finance's Q2FY26 results demonstrate the company's ability to navigate challenging market conditions while delivering strong financial performance and value to its stakeholders.