Shriram Finance’s net profit for the quarter ended March stood at Rs 3,013.6 crore up nearly 41% on year on the back of rising income. However, the asset quality of the non-bank lender deteriorated for the reporting quarter.
The net interest income for Jan-Mar increased 15.6% on year to Rs 6,994.1 crore. The net interest margin stood at 8.61% as against 8.58% a quarter ago. The assets under management rose by 14.8% to Rs 3.02 lakh crore as on March 31.
Commercial vehicles, the segment contributing the most towards the AUM, grew 19.5% on year, followed by passenger vehicles which was up 19.05% on year. Gold loans and farm equipment segments grew over 30% on year. Construction equipment book saw a decline of nearly 26% on year.
Segmental Performance
Operational performance remained robust during the quarter, with the liquidity coverage ratio rising to 323.17% as of March 31, 2026, compared with 286.73% in the same period last year. The cost-to-income ratio improved to 25.32% in Q4 FY26 from 27.65% a year ago.
For the quarter, the company posted a return on assets of 3.63% and a return on equity of 19.13%, inclusive of exceptional items.
Further, the board approved the reappointment of Parag Sharma as managinf director and CEO for a period of five years, from December 13 to December 12, 2031, subject to shareholder approval.
The board also approved the appointment of Morihiko Fuji and Shinichi Fujinami, nominees of MUFG Bank, as Additional Directors in the category of Non-Executive, Non-Independent Directors.
Strategic Leadership
The non-bank lender has also approved fund raising plan for FY27, through debt instruments such as non-convertible debentures (NCDs), subordinated debentures, external commercial borrowings, securitisation, and other borrowing avenues in domestic and international markets.
The board also recommended a final dividend of Rs 6 per equity share of face value Rs 2 each for FY26, subject to shareholders’ approval. On Friday, the shares of the company closed 0.2% higher at Rs 1,011.30 on NSE.