Shriram Finance Limited (SFL), one of India's largest retail asset financing NBFCs, has announced its financial results for the first quarter ended June 30, 2025 (Q1 FY26). The company reported a solid performance with growth in key financial metrics.

Financial Highlights

• Net profit after tax increased by 8.84% to ₹2,155.73 crore, compared to ₹1,980.59 crore in Q1 FY25.
• Net Interest Income grew by 12.55% to ₹6,026.43 crore, up from ₹5,354.47 crore in the same period last year.
• Total income rose by 20.11% to ₹11,541.76 crore, versus ₹9,609.71 crore in Q1 FY25.
• Earnings per share (EPS) improved by 8.73% to ₹11.46, compared to ₹10.54 in the corresponding quarter of the previous year.

Assets Under Management

SFL's Assets Under Management (AUM) showed significant growth, reaching ₹2,72,249.01 crore as of June 30, 2025, marking a 16.62% increase from ₹2,33,443.66 crore reported on June 30, 2024.

Asset Quality

The company's asset quality showed improvement:

• Gross Stage 3 assets decreased to 4.53% from 5.39% in Q1 FY25.
• Net Stage 3 assets slightly reduced to 2.57% from 2.71% year-on-year.

Segment-wise Performance

Commercial Vehicles continued to be the largest segment, contributing 45.23% to the total AUM, followed by Passenger Vehicles at 20.80% and MSME at 14.26%.

Capital Adequacy

Shriram Finance maintained a strong capital position with a Capital Adequacy Ratio of 20.79% as of June 30, 2025, well above regulatory requirements.

Network Expansion

The company expanded its presence, operating through 3,225 branches across India as of Q1 FY26.

Digital Initiatives

Shriram Finance reported progress in its digital initiatives:

• The Shriram One App reached 17.70 million cumulative downloads.
• 31,727 service requests were resolved through the app and web platforms during the quarter.

Management Commentary

Y. S. Chakravarti, Managing Director & CEO, commented on the results: "Our Q1 FY26 performance demonstrates the resilience of our business model and the strength of our diversified portfolio. The growth in AUM and improvement in asset quality reflect our focus on prudent lending practices and effective risk management."

Shriram Finance's strong Q1 FY26 results indicate the company's ability to capitalize on the growing demand for retail asset financing in India. With its expanded network and digital initiatives, the company is well-positioned to continue its growth trajectory in the coming quarters.

Shriram Finance Limited (SFL), one of India's largest retail asset financing NBFCs, has announced its financial results for the first quarter, showcasing robust growth across key metrics.

Assets Under Management Surge

The company reported a significant 16.62% year-over-year increase in Assets Under Management (AUM), reaching Rs. 2,72,249.01 crores. This marks a substantial rise from Rs. 2,33,443.66 crores recorded in the same period last year and Rs. 2,63,190.27 crores at the end of the previous fiscal year.

Profit and Revenue Growth

SFL's net profit after tax grew by 8.84% to Rs. 2,155.73 crores, compared to Rs. 1,980.59 crores in the same quarter of the previous year. The company's total income saw a notable increase of 20.11%, rising from Rs. 9,609.71 crores to Rs. 11,541.76 crores.

Net Interest Income and EPS

The Net Interest Income stood at Rs. 6,026.43 crores, marking a 12.55% increase from Rs. 5,354.47 crores in the corresponding quarter of the previous year. Earnings per share (EPS) also improved, with basic EPS rising by 8.73% to Rs. 11.46, up from Rs. 10.54.

Asset Quality

The company maintained a stable asset quality profile:

• Gross Stage 3 assets ratio improved to 4.53% from 5.39% year-over-year
• Net Stage 3 assets ratio decreased to 2.57% from 2.71% year-over-year
• The provision coverage ratio for Stage 3 assets stood at 44.31%

Segment-wise Performance

SFL's diverse portfolio showed growth across various segments:

Expanded Network and Customer Base

Shriram Finance boasts a pan-India presence with 3,225 branches and an employee strength of 79,186, serving 97.19 lakh customers.

Management Commentary

Y.S. Chakravarti, Managing Director & CEO, commented on the results: "Our performance demonstrates Shriram Finance's resilience and growth potential. The significant increase in AUM and improved profitability reflect our strong market position and effective business strategies. We remain committed to serving our diverse customer base and driving sustainable growth across all our business segments."

Looking Ahead

With its strong financial performance and expanding presence, Shriram Finance Limited is well-positioned to capitalize on the growing demand for retail asset financing in India. The company's focus on diversified product offerings and pan-India reach continues to be key drivers for its sustained growth in the competitive NBFC sector.