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

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.

Shriram Finance Limited has issued a clarification regarding recent reports published by Moneycontrol, stating that the information is factually incorrect. The company has categorically denied the claims made in the news article dated November 3, 2025.

Market-Driven Price Movement

In a filing to the stock exchanges, Shriram Finance emphasized that the increase in its share price observed on November 3, 2025, was entirely market-driven. The company stated, "The Management of the Company neither has any control nor has any knowledge of the reasons for this increase in the market price of its equity shares."

Previous Clarification

The company pointed out that it had already issued a clarification on October 1, 2025, pursuant to Regulation 30(11) of the Listing Regulations, denying mainstream media reports on the same subject matter.

Commitment to Transparency

Shriram Finance reaffirmed its commitment to good corporate governance practices, stating, "The Company follows good corporate governance practices and any material information requiring it to make disclosures under the applicable regulatory requirements will be promptly disseminated by the Company to the Stock Exchanges."

Regulatory Compliance

The clarification was issued in response to letters from BSE Limited and the National Stock Exchange of India Limited, seeking confirmation on the news item appearing on Moneycontrol's website. Shriram Finance's response aligns with its obligations under Regulation 30(11) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This latest statement from Shriram Finance underscores the importance of relying on official company disclosures and regulatory filings for accurate information about market movements and corporate actions.