| Stock Details | |
| Market Cap. (₹Cr.) | 2,24,152 |
| Equity (₹Cr.) | 470.54 |
| Face Value (₹) | 2 |
| 52 Wk. high/low | 1108 / 566.50 |
| BSE Code | 511218 |
| NSE Code | SHRIRAMFIN |
| Book Value (₹) | 349.20 |
| Sector | NBFC |
Result Highlights:
- Shriram Finance reported a better performance, with Net Interest Income (NII) at ₹6,994.08 crore in Q4FY26, registering a 3.4% QoQ and 15.6% YoY growth. For FY26, NII stood at ₹26,051.44 crore, reflecting a healthy 14.1% YoY increase, indicating sustained momentum in lending operations.
- It demonstrated robust operating efficiency, with Q4FY26 operating profit at ₹5,499.66 crore, up 13.5% QoQ and 22.0% YoY. On a full-year basis, operating profit came in at ₹19,330.08 crore, growing 4.1% YoY, highlighting stable earnings delivery despite macro challenges.
- Profitability remained strong, with PAT at ₹3,013.57 crore in Q4FY26, marking a 41% YoY and 19.5% QoQ growth. For FY26, PAT stood at ₹9,998.15 crore versus ₹9,761 crore in FY25, translating into a modest 2.4% YoY growth, reflecting some margin normalization at the annual level.
- Asset quality performance was mixed, as GNPA marginally increased to 4.58% in Q4FY26 (vs. 4.55% YoY and 4.54% QoQ), while NNPA improved to 2.33% (vs. 2.64% YoY and 2.38% QoQ), indicating better recoveries and controlled incremental stress.
- Net Interest Margin (NIM) remained stable and healthy at 8.61%, improving from 8.25% in Q4FY25 and 8.58% in Q3FY26, reflecting stable and strong performance.
- The Board recommended a final dividend of ₹6 per share, taking the total dividend for FY26 to ₹10.8 per share, reinforcing the company’s commitment to consistent shareholder returns.
- AUM stood at ₹3.02 lakh crore in Q4FY26, registering 14.8% YoY and 3.6% QoQ growth, driven primarily by strong traction in the commercial and passenger vehicle segments, which together contribute over ~68% of total AUM.
- Segment-wise, commercial and passenger vehicles grew ~19% YoY, while farm equipment and gold loan segments delivered 30%+ YoY growth. However, the construction equipment segment declined by 25.6% YoY, whereas other segments maintained healthy double-digit growth.
- The company continues to expand its distribution footprint, serving ~9.73 million customers through a network of 3,225 branches, including a strong rural presence, which is expected to support long-term growth.
- A key strategic milestone during the year was the preferential allotment to MUFG Bank, resulting in MUFG acquiring a 20% stake in the company on a fully diluted basis, strengthening its capital base and global partnership.
Management Commentary:
- Management has guided for 18% AUM growth in FY27; however, it remains cautiously optimistic and intends to reassess this trajectory after Q1, factoring in monsoon performance, fuel price volatility, and broader macroeconomic conditions impacting demand.
- It expects to sustain NIM at around 8.5% going forward, while guiding for a long-term cost-to-income ratio of 26%–27%, reflecting continued focus on operational efficiency, cost discipline, and maintaining profitability despite external uncertainties.
- Liquidity remains robust at ~ ₹13,000 crore, providing coverage for over two months of liability obligations, while capital adequacy remains strong at ~34% CAR, supported by recent capital infusion from Mitsubishi UFJ Financial Group (MUFG).
- It is gradually increasing its exposure to new vehicle financing, which currently contributes around 15–20% of disbursements, while continuing to maintain its core strength in used vehicle financing and a retail-focused lending approach.
- Growth in the MSME segment is expected to remain moderate at 13–15%, with management maintaining a cautious stance by focusing primarily on secured lending such as loans against property, amid ongoing macroeconomic and supply chain uncertainties.
- Management acknowledged risks from potential monsoon weakness, elevated fuel prices, and a marginal uptick in GS3 to 4.58%, emphasizing continued focus on underwriting discipline and proactive asset quality monitoring.
- It continues to benefit from a stable and experienced leadership team, with no major changes anticipated, enabling consistent execution of its long-term strategy focused on customer expansion, portfolio diversification, and sustainable growth delivery.
Outlook
Shriram Finance has delivered a stable performance in Q4FY26, with NII growing 15.6% YoY and profit rising sharply by 41% YoY in Q4FY26 over Q4FY25. In FY26, it has posted NII growth of 14.1% and PAT also increased by 2.4% YoY as compared to FY25, reflecting strong business momentum. Margins remained stable, with NIM improving to 8.61% in Q4FY26 from 8.58% in Q3FY26, while asset quality also strengthened as NNPA improved to 2.33% in Q4FY26 from 2.64% in Q3FY26.
The overall business continued to expand, with AUM reaching ₹3.02 lakh crore, growing 14.8% YoY in Q4FY26 over Q4FY25, mainly driven by commercial and passenger vehicle loans contributing around 68% of the portfolio. Additionally, the 20% stake acquisition by MUFG has strengthened its capital position and brings global expertise, supporting long-term growth.
Looking ahead to FY27, management has guided for 18% AUM growth; however, it remains cautiously optimistic and plans to reassess this trajectory after Q1, considering monsoon trends, fuel price volatility, and broader macroeconomic conditions. NIM is expected to remain stable at 8.5%, while the company continues to gradually increase its exposure to new vehicle financing (currently at 15-20%). MSME growth is likely to remain moderate at 13–15%.
At the current market price of ₹953, the stock is available at a P/Ex of 17.9x based on FY26 EPS of ₹53.15. Overall, we maintain a positive view on Shriram Finance, supported by strong operating performance, improving asset quality, disciplined growth strategy, and attractive valuations, positioning the company well for outperformance over the medium term to long term.
Results:
| Particulars (In Cr) | Q4FY26 | Q4FY25 | Q3FY26 | YoY% | QoQ% | FY26 | FY25 | YoY% |
| Operating Income | 12302.0 | 11245.0 | 12028.2 | 9.4 | 2.3 | 47493.4 | 41324.8 | 14.9 |
| Other Operating Income | 206.7 | 209.2 | 137.5 | -1.2 | 50.3 | 624.5 | 509.6 | 22.5 |
| Other Income | 19.2 | 6.0 | 25.8 | 218.8 | -25.7 | 60.1 | 1681.8 | -96.4 |
| Total Income | 12527.9 | 11460.3 | 12191.6 | 9.3 | 2.8 | 48178.0 | 43516.2 | 10.7 |
| Operating Expenditure | ||||||||
| Interest | 5335.8 | 5224.0 | 5259.1 | 2.1 | 1.5 | 21520.4 | 18454.6 | 16.6 |
| Employee Expenses | 968.4 | 905.7 | 1237.3 | 6.9 | -21.7 | 4126.0 | 3651.2 | 13.0 |
| Other Expenses | 724.1 | 824.2 | 848.1 | -12.1 | -14.6 | 3201.5 | 2847.5 | 12.4 |
| TOTAL OPERATING EXPENDITURE | 7028.3 | 6953.9 | 7344.5 | 1.1 | -4.3 | 28847.9 | 24953.2 | 15.6 |
| Operating Profit Before Prov. & Cont. | 5499.7 | 4506.3 | 4847.1 | 22.0 | 13.5 | 19330.1 | 18563.0 | 4.1 |
| Provisions & Write Offs | 1409.7 | 1563.3 | 1310.3 | -9.8 | 7.6 | 5339.1 | 5311.7 | 0.5 |
| Depreciation | 174.6 | 171.1 | 176.6 | 2.1 | -1.1 | 698.8 | 645.3 | 8.3 |
| TOTAL EXPENDITURE | 8612.6 | 8688.3 | 8831.4 | -0.9 | -2.5 | 34885.7 | 30910.2 | 12.9 |
| PBT | 3915.3 | 2772.0 | 3360.2 | 41.2 | 16.5 | 13292.3 | 12606.0 | 5.4 |
| Tax | 1031.0 | 498.0 | 1118.3 | 107.0 | -7.8 | 4157.9 | 3590.9 | 15.8 |
| Deferred Tax | -129.3 | 134.6 | -279.7 | -196.1 | -53.8 | -863.8 | -745.9 | 15.8 |
| PAT | 3013.6 | 2139.4 | 2521.7 | 40.9 | 19.5 | 9998.2 | 9761.0 | 2.4 |
| GNPA % | 4.58 | 4.55 | 4.54 | 4.58 | 4.55 | |||
| NNPA % | 2.33 | 2.64 | 2.38 | 2.33 | 2.64 |
Source: Company website, EWL Research
Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014
Elite Wealth Limited (Elite Wealth Limited is wholly owned subsidiary of InCred Capital Financial Services Limited) does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.
For analyst certification and other important disclosures, see the Disclosure Appendix, or go to www.elitewealth.in. Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India. (SEBI Registration No.: INH100002300)
Disclosure Appendix
Analyst Certification (For Reports)
Vindhyachal Prasad, Elite Wealth Limited, vindhyachal@elitestock.com
The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.
As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:
- All of the views expressed in the report accurately reflect his or her personal views about any and all of
the subject securities or issuers; and
- No part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.
Research Excerpts
This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please visit www.elitewealth.in.
Company-Specific Disclosures
Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting https://www.elitewealth.in, or emailing research@elitestock.com with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research. For important disclosures for these companies, please e-mail research@elitestock.com.
Options related research:
If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at https://www.elitewealth.in
Other Disclosures
All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person.
Ownership and material conflicts of interest Disclosure
Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Limited. Analyst as officer or director: Elite Wealth Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, board member or employee of any company in the analyst’s area of coverage.
Country Specific Disclosures
India – For private circulation only, not for sale. Legal
Entities Disclosures
Elite Wealth Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and Exchange Board of India. Telephone: 011-43035555, Facsimile: 011-22795783 and Website: www.elitewealth.in
EWL discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research report, details of associates and such other information as is necessary to take an investment decision, including the following:
- Reports
- EWL or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
- EWL or its associates or relatives, have no actual/beneficial ownership of one %. or more in the securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;
- EWL or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;
- Compensation
- EWL or its associates have not received any compensation from the subject company in the past twelve months;
- EWL or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
- EWL or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
- EWL or its associates have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
- EWL or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research
- In respect of Public Appearances
- EWL or its associates have not received any compensation from the subject company in the past twelve months;
- The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided by EWL
