Shriram Finance reported a 29.36% year-on-year (YoY) decline in its Q3FY26 net profit to Rs 2,521.67 crore from Rs 3,569.76 crore reported in Q3FY25.
Revenue from operations stood at Rs 11,833.14 crore in Q3FY26, up 14.43% YoY from Rs 10,340.84 crore reported in Q3FY25.
On a sequential basis, profit increased 9.30% from Rs 2,307.18 crore reported in Q2FY26, while revenue rose 2.45% from Rs 11,550.56 crore reported in Q2FY26.
Shriram Finance awaiting regulatory nod for Rs 39,618 crore MUFG preferential issue
The company in its Q3 press release reiterated that it is awaiting regulatory approvals for its preferential issue to MUFG Bank.
Under the plan, Shriram Finance will issue 471.12 million equity shares at Rs 840.93 per share, raising Rs 39,617.98 crore. Once completed, MUFG Bank will become a minority shareholder.
“Employee benefits expenses for the quarter include incremental impact on gratuity of Rs. 131.71 crores and on long-term compensated absences of Rs. 65.24 crores due to change in definition of wages under the New Labour Codes. The Company continues to monitor the final isation of Central/ State Rules and clarifications from the Government on other aspects of the New Labour Codes and would provide appropriate accounting effect on the basis of such developments as required,” the company said in its Q3 release.
Shriram Finance asset quality steady; net NPA at 2.38%
Shriram Finance maintained stable asset quality during the quarter. The gross NPA ratio stood at 4.54%, while the net NPA ratio was at 2.38%.
The company’s capital adequacy ratio remained healthy at 20.27%, while the liquidity coverage ratio stood at 334.93%.
Total income for the quarter rose to Rs 12,191.58 crore from Rs 10,705.47 crore in Q3 FY25, driven by steady growth in lending activity.
Shriram Finance share price
The share price of Shriram Finance hit an intraday low of 3.30% on Friday. However, over the past few months, the stock has gained significantly. It has risen 53.19% in the past six months and 41.1% in the past three months.