Sundaram Finance on Monday reported a 22% year-on-year increase in standalone net profit to ₹522 crore for the quarter ended June 2026 (Q1FY27), driven by higher interest income on the back of strong loan disbursements.
Standalone interest income rose 12% to ₹1,764 crore during the quarter, while net interest income (NII) grew 19% to ₹925 crore. Loan disbursements increased 22% year-on-year to ₹8,947 crore in Q1FY27.
Harsha Viji, Executive Vice Chairman, said the company opened the financial year with stronger demand despite a more complex macro backdrop marked by West Asia tensions, higher energy and commodity prices, supply-chain disruption and monsoon uncertainty.
Assets under management (AUM) grew 17% year-on-year to ₹62,275 crore as of the end of June 2026. Asset quality improved during the quarter, with gross Stage 3 assets declining to 1.71% from 1.91% a year earlier, while net Stage 3 assets fell to 0.88% from 1.08%. Under the Reserve Bank of India’s asset classification norms for NBFCs, gross and net NPAs improved to 2.28% and 1.35%, respectively, from 2.66% and 1.71% in the corresponding quarter last year.
On a consolidated basis, net profit rose 34% year-on-year to ₹636 crore, supported by a 13% increase in interest income to ₹2,644 crore. The consolidated performance includes subsidiaries Sundaram Home Finance, Sundaram Asset Management, and joint venture Royal Sundaram General Insurance.
Consolidated AUM across the lending and general insurance businesses stood at ₹92,887 crore at the end of Q1FY27, registering a 15% year-on-year increase. The asset management business reported AUM of ₹90,089 crore, compared with ₹80,501 crore a year earlier.
Sundaram Finance Managing Director Rajiv Lochan said, “The operating environment is turning more supportive for growth, even as key external monitorables such as geopolitical uncertainty and monsoon shortfalls remain.”
Shares of Sundaram Finance closed 3% higher at ₹4,825.90 on the NSE.