Sundaram Finance on Monday reported a 16% year-on-year rise in its standalone net profit for the second quarter at ₹394.2 crore, driven by higher disbursements during the festive season.
The NBFC reported an 18% increase in revenue from operations to ₹1,615 crore. Disbursements grew 18% to ₹8,113 crore, from ₹6,860 crore in the year-ago period. Net interest income rose 21% to ₹822 crore.
“The festival period has been strong,” MD Rajiv Lochan said, adding that the company expects the impact of GST 2.0 on consumption to be buoyant, rural demand to improve after a healthy monsoon, and private sector capex to pick up in the coming quarters. “Consequently, our post-festival outlook for Q3 and H2 is optimistic.”
Assets under management (AUM) grew 15% to ₹55,419 crore as of September 2025, compared with ₹48,058 crore a year earlier.
However, the asset quality witnessed some pressure, with gross Stage 3 assets rising to 2.03% from 1.62% in September 2024. Net Stage 3 assets increased to 1.13% from 0.89% in the same period.
At the consolidated level, Sundaram Finance reported a 12% year-on-year increase in net profit to ₹488 crore in Q2, supported by a 14% rise in consolidated revenue from operations to ₹2,386 crore.
The consolidated numbers include the performance of its subsidiaries — Sundaram Home Finance, Sundaram Asset Management, and joint venture Royal Sundaram General Insurance.
“Our group companies in asset management, general insurance and home finance have continued to record strong results. We continue to rely on our time-tested approach of steady and sustainable growth with best-in-class asset quality and consistent profitability,” said Harsha Viji, executive vice chairman.
The company reported its highest-ever disbursements of ₹15,423 crore in H1FY26, reflecting a 12% year-on-year increase. Consolidated AUM across the lending and general insurance businesses rose 15% year-on-year to ₹83,586 crore while the AUM of the asset management business stood at ₹82,608 crore, up from ₹76,845 crore in September 2024.
The board approved the acquisition of Capitalgate Investment Advisors by Sundaram Alternate Assets for a consideration of ₹35 crore. Shares of Sundaram Finance closed 2% higher at ₹4,691 on the NSE.