Shriram Finance Limited (SFL), one of India's largest retail asset financing Non-Banking Finance Companies (NBFCs), has announced its financial results for the first quarter of fiscal year 2026, ending June 30, 2025. The company reported a solid performance with growth in key financial metrics.

Profit and Revenue Growth

SFL's net profit for Q1 FY26 increased by 8.84% to Rs 2,155.73 crores, compared to Rs 1,980.59 crores in the same period last year. The company's earnings per share (EPS) also saw an increase of 8.73%, rising to Rs 11.46 from Rs 10.54 in Q1 FY25.

Net Interest Income and Assets Under Management

The company's net interest income (NII) saw a healthy increase of 12.55%, standing at Rs 6,026.43 crores for the quarter, compared to Rs 5,354.47 crores in Q1 FY25.

Shriram Finance's Assets Under Management (AUM) showed strong growth:

• Total AUM increased by 16.62% to Rs 2,72,249.01 crores, up from Rs 2,33,443.66 crores in Q1 FY25

Asset Quality

Shriram Finance demonstrated changes in its asset quality:

• Gross Stage 3 assets decreased by 1.68% to Rs 121,994.80 million
• Net Stage 3 assets increased by 12.07% to Rs 67,932.90 million

Corporate Developments

• The Board approved a resource mobilization plan for debt securities issuance from August 1 to October 31, 2025.
• The company acquired a 100% stake in Shriram Overseas Investments Limited for Rs 50.12 crores, which became a wholly-owned subsidiary from May 9, 2025.

Shriram Finance's Q1 FY26 results reflect the company's ability to navigate the economic environment while delivering growth and maintaining asset quality. The company's diverse product portfolio and strategic acquisitions position it well for continued success in the retail financing sector.

Shriram Finance Limited , a prominent player in the Indian financial services sector, has made two significant announcements that are likely to draw investor attention.

NCD Buyback Approval

Shriram Finance has approved a buyback of its listed Non-Convertible Debentures (NCDs). The company's Banking & Finance Committee, in a meeting held on July 11, discussed and approved the purchase/repurchase of outstanding secured, senior, rated, listed, redeemable NCDs issued on a private placement basis.

The buyback will be conducted within the specified limits approved by the Board and in accordance with the company's Investment Policy & Policy for Buy-back of Debentures. The repurchased NCDs will either be held in the company's books or redeemed, as per the company's decision.

While specific details about the scale or timing of the buyback were not disclosed, this move could potentially impact the company's debt structure and liquidity position.

RBI Penalty

In a separate development, Shriram Finance has been imposed with a penalty by the Reserve Bank of India (RBI). The company received an order dated July 8 from the RBI, imposing a penalty of Rs. 2.70 lakh for non-compliance with certain provisions of RBI Digital Lending Directions.

The non-compliance was observed during a statutory inspection with reference to the company's financial position as of March 31. The penalty was imposed under Section 58G(1)(b) read with Section 58B(5)(aa) of the Reserve Bank of India Act, 1934.

Shriram Finance has stated that there is no material impact on its financial, operational, or other activities due to this penalty. The company has already taken corrective measures to align its operations and procedures with the applicable directions.

Key Points:

• Shriram Finance approves buyback of listed NCDs for holding or redemption
• RBI imposes Rs. 2.70 lakh penalty for non-compliance with Digital Lending Directions
• Company claims no material impact from the penalty and has taken corrective measures

These developments highlight the dynamic regulatory environment in which Shriram Finance operates and its proactive approach to debt management. Investors and stakeholders will likely keep a close watch on how these actions impact the company's financial position and regulatory compliance in the coming months.