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:

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.

Shriram Finance Limited , a prominent player in the Indian financial services sector, has made a significant move in the debt market by allotting Non-Convertible Debentures (NCDs) worth Rs 750 crore. This allotment, approved by the company's Allotment Committee, marks the fourth issuance under the same ISIN, following previous issues in April and May 2025.

Key Details of the NCD Allotment

Pricing and Yield

The NCDs have been priced at Rs 1,07,313.59 per unit, which includes a premium of Rs 2,498.80 and accrued interest of Rs 4,814.79. This pricing structure results in an effective yield of 7.50% for investors.

Utilization of Funds

Shriram Finance has outlined that the proceeds from this NCD issuance will be utilized for various purposes, including:

• Augmenting long-term resources
• Financing various asset classes
• Onward lending
• Refinancing existing debt
• Meeting working capital requirements
• General corporate purposes

The company has emphasized that 100% of the proceeds will be used in accordance with statutory and regulatory requirements, including those set by the Reserve Bank of India (RBI).

Previous Issuances

This allotment is part of a series of NCD issuances by Shriram Finance under the same ISIN (INE721A07SL9). The previous issuances were:

• April 09, 2025: Rs 575.00 crore
• May 08, 2025: Rs 200.00 crore
• May 23, 2025: Rs 500.00 crore

Market Implications

The successful allotment of these NCDs indicates strong investor confidence in Shriram Finance's debt offerings. The 8.70% coupon rate appears attractive in the current market environment, potentially drawing interest from both institutional and retail investors seeking stable returns.

For Shriram Finance, this debt issuance provides an opportunity to diversify its funding sources and optimize its capital structure. The funds raised will enable the company to expand its lending activities and support its growth objectives in various financial service segments.

As the NCDs will be listed on the Wholesale Debt Market (WDM) segment of the BSE, it offers liquidity options for investors who may wish to trade these securities in the secondary market.