Shriram Finance Reports 15.74% Growth in Assets Under Management

Shriram Finance Limited (SFL), one of India's largest retail asset financing Non-Banking Finance Companies (NBFCs), has announced a significant increase in its Assets Under Management (AUM) for the second quarter ended September 30, 2023.

Key Highlights

Total AUM grew by 15.74% year-over-year to Rs. 2,813,094.60 million
Net Interest Income increased by 11.77% to Rs. 62,668.40 million
Profit After Tax rose by 11.39% to Rs. 23,071.80 million

AUM Growth

Shriram Finance reported a robust growth in its Assets Under Management, which stood at Rs. 2,813,094.60 million as of September 30, 2023. This represents a 15.74% increase compared to Rs. 2,430,425.50 million in the same period last year. The growth indicates a significant expansion in the company's lending portfolio and overall business scale.

Financial Performance

The company's financial results for Q2 FY24 show strong performance across key metrics:

Metric	Q2 FY24 (Rs. million)	Q2 FY23 (Rs. million)	YoY Growth
Net Interest Income	62,668.40	56,067.40	11.77%
Profit After Tax	23,071.80	20,712.60	11.39%
Earnings Per Share (Basic)	12.27	11.02	11.34%

Segment-wise AUM Break-up

Shriram Finance's diverse lending portfolio shows growth across various segments:

Segment	AUM (Rs. million)	% of Total AUM
Commercial Vehicles	1,281,402.40	45.55%
Passenger Vehicles	595,505.60	21.17%
MSME	406,349.90	14.44%
Two Wheelers	155,513.60	5.53%
Construction Equipment	153,666.90	5.46%
Personal Loans	105,475.20	3.75%
Farm Equipment	61,817.80	2.20%
Gold	53,363.20	1.90%

Asset Quality

The company maintained a stable asset quality profile:

Gross Stage 3 assets stood at Rs. 127,362.60 million, a slight decrease of 0.22% year-over-year
Net Stage 3 assets increased by 10.10% to Rs. 67,884.10 million
Provision coverage ratio for Stage 3 assets was 46.70%

Management Commentary

Y. S. Chakravarti, Managing Director & CEO of Shriram Finance, stated, "Our strong AUM growth of 15.74% reflects the robust demand across our diverse product offerings. We continue to focus on expanding our reach and maintaining asset quality while driving sustainable growth."

Dividend Announcement

The Board of Directors has declared an interim dividend of 240%, amounting to Rs. 4.80 per equity share of face value Rs. 2 each for the financial year 2023-24.

Conclusion

Shriram Finance's impressive AUM growth and solid financial performance demonstrate the company's strong position in the retail asset financing sector. With a diverse product portfolio and expanding customer base, the company appears well-positioned for continued growth in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.44%	+4.68%	+21.55%	+22.43%	+19.29%	+396.59%

Shriram Finance Limited (SFL), one of India's largest retail asset financing NBFCs, has announced strong financial results for the second quarter of fiscal year 2026, demonstrating resilient growth and improved profitability.

Key Financial Highlights

For Q2 FY26, Shriram Finance reported:

Metric	Q2 FY26	Q2 FY25	YoY Change
Net Profit	₹2,307.18	₹2,071.26	11.39%
Total Income	₹11,916.73	₹10,096.68	18.03%
Net Interest Income	₹6,266.84	₹5,606.74	11.77%
Earnings Per Share (Basic)	₹12.27	₹11.02	11.34%

Assets Under Management and Asset Quality

The company's Assets Under Management (AUM) grew by 15.74% year-on-year to ₹2,81,309.46 crore as of September 30, 2025. This growth reflects SFL's strong market position and expanding customer base.

Asset quality showed improvement:

Gross Stage 3 assets decreased marginally by 0.22% to ₹12,736.26 crore
Net Stage 3 assets increased by 10.10% to ₹6,788.41 crore
The Gross Stage 3 ratio improved to 4.57% from 5.32% in Q2 FY25

Dividend Declaration

The Board of Directors declared an interim dividend of 240% (₹4.80 per equity share of face value ₹2 each) for FY 2025-26, showcasing the company's strong financial position and commitment to shareholder returns.

Operational Highlights

Shriram Finance continues to expand its reach:

Branch network increased to 3,225 branches
Employee strength grew to 78,833
Customer base expanded to 96.64 lakh customers

Segment-wise Performance

The company reported growth across various segments:

Commercial Vehicles: 14.21% YoY growth
Passenger Vehicles: 21.53% YoY growth
MSME Loans: 25.81% YoY growth
Personal Loans: 27.48% YoY growth

Capital Adequacy and Liquidity

SFL maintains a strong capital position:

Total CRAR stood at 20.68%, well above regulatory requirements
Tier I CRAR at 19.98%
Liquidity Coverage Ratio at a healthy 297.21%

Management Commentary

Y.S. Chakravarti, Managing Director & CEO, commented on the results: "Our Q2 performance demonstrates Shriram Finance's resilience and ability to grow across diverse segments. The improved asset quality and strong capital position provide us with a solid foundation for sustainable growth."

Outlook

With its robust financial performance, expanding network, and diverse product portfolio, Shriram Finance is well-positioned to capitalize on the growing demand for retail financing in India. The company's focus on digitalization and customer-centric approach is expected to drive further growth in the coming quarters.

Investors and stakeholders can view these results as a positive indicator of the company's operational efficiency and market strength in the competitive NBFC sector.