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Shriram Finance Ltd

| Audited Standalone Financial Results for Q4 and Year Ended March 31, 2026

BULLISH SENTIMENT

Report Source

⬤24th Apr 26

Summary : Shriram Finance reports strong FY26 growth, boosted by strategic investment and credit rating upgrades.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Total Expenses (Standalone FY26): Rs. 34,885.72 crores.
  2. Total Expenses (Consolidated FY26): Rs. 34,892.46 crores.
  3. Finance costs (Standalone FY26): Rs. 21,520.41 crores.
  4. Impairment on financial instruments (Standalone FY26): Rs. 5,339.07 crores.
  5. Employee benefits expenses (Standalone FY26): Rs. 4,126.01 crores.
  6. Total Revenue from operations (Standalone FY26): Rs. 48,117.89 crores.
  7. Total Revenue from operations (Consolidated FY26): Rs. 48,132.95 crores.
  8. Net Interest Income (Standalone FY26): Rs. 26,051.44 crores, up 14.09% YoY.
  9. Net Interest Income (Consolidated FY26): Rs. 26,051.44 crores, up 14.09% YoY.
  10. Net cash flows from operating activities (Standalone FY26): (Rs. 12,981.43 crores).
  11. Net cash flows from investing activities (Standalone FY26): (Rs. 543.77 crores).
  12. Net cash flows from financing activities (Standalone FY26): Rs. 8,584.84 crores.
  13. Net cash flows from operating activities (Consolidated FY26): (Rs. 13,281.43 crores).
  14. Net cash flows from investing activities (Consolidated FY26): (Rs. 242.83 crores).
  15. Net cash flows from financing activities (Consolidated FY26): Rs. 8,586.79 crores.
  16. Total Assets (Standalone FY26): Rs. 321,155.16 crores.
  17. Total Assets (Consolidated FY26): Rs. 321,374.52 crores.
  18. Loans (Standalone FY26): Rs. 282,452.44 crores.
  19. Equity (Standalone FY26): Rs. 65,704.93 crores.
  20. Total Debts to Total Assets (Standalone FY26): 0.78.
  21. Net Worth (Consolidated FY26): Rs. 65,459.01 crores, up 15.05% YoY.
  22. Disclosure of Related Party Transactions on a consolidated basis for H2 FY26 filed via XBRL.
  23. Both standalone and consolidated financial results are presented.
  24. Auditors issued unmodified opinion for both.

Corporate Overview

  1. Pan-India network with 3,225 branches.
  2. Branches distributed across Metro, Urban, Semi-Urban, and Rural areas.
  3. Risks and uncertainties associated with expectations.
  4. Ability to successfully implement strategy.
  5. Changes in government policies.
  6. Ability to successfully implement strategy.
  7. Changes in government policies.
  8. Flagship company of Shriram group, a retail asset financing NBFC.
  9. Holistic finance provider for Small Road Transport Operators and small business owners.
  10. Leader in organized financing of pre-owned commercial vehicles and two-wheelers.
  11. Offers financing for passenger commercial vehicles, MSMEs, tractors, gold, personal loans.
  12. Positive and forward-looking, highlighting growth and strategic expansion.
  13. Emphasizes robust foundation for long-term strategic expansion.
  14. Small Road Transport Operators.
  15. Small business owners.
  16. Micro, Small, and Medium Enterprises (MSMEs).
  17. Banks, NBFCs, Insurance Companies, OEMs, Dealers, Leasing and Rental Companies, Aggregators, Brokers, Transporters, Contractors, End Users (for SAMIL).
  18. Commercial Vehicles
  19. Passenger Vehicles
  20. Construction Equipments
  21. Farm Equipments
  22. MSME
  23. Two Wheelers
  24. Gold
  25. Personal Loans
  26. Assets Under Management (AUM) above Rs. 3.02 trillion.
  27. Network of 3,225 branches.
  28. Employee strength of 76,241.
  29. Servicing over 9.73 million customers.
  30. Resource mobilisation plan for FY 2026-27 for debt securities (NCDs, subordinated debentures, ECB, securitisation).
  31. Preferential allotment of equity shares to MUFG Bank Ltd. for Rs. 39,617.98 crores to bolster capital adequacy and support long-term strategic expansion.
  32. In-principle approval for Shriram Overseas Investments Limited to commence Primary Dealer business.

Risk Factors

  1. Successful strategy implementation is crucial.
  2. Changes in government policies.
  3. Economic uncertainties may impact expectations.
  4. New labor codes require monitoring.

Key Drivers

  1. MUFG Bank Ltd. strategic equity investment.
  2. Multiple credit rating upgrades received.
  3. Strong AUM growth, increased profitability.
  4. Resource mobilization for future expansion.

Auditor’s Report

  1. Unmodified audit opinion on standalone annual financial results.
  2. Unmodified audit opinion on consolidated annual financial results.

Board Commentary

  1. Re-appointment of Mr. Parag Sharma as MD & CEO for 5 years (Dec 13, 2026 to Dec 12, 2031).
  2. Appointment of Mr. Morihiko Fuji and Mr. Shinichi Fujinami as Non-Executive Non-Independent Directors (MUFG Bank Ltd. nominees).
  3. Transfer of Mr. R. Chandrasekar (Key Managerial Person) to a new role within Shriram Group.
  4. Final dividend of Rs. 6/- per share (300%) for FY 2025-26.
  5. Total dividend for FY 2025-26 is Rs. 10.80/- per share (540%), including interim dividend of Rs. 4.80/-.
  6. Final dividend payable by August 09, 2026, subject to AGM approval.
  7. Risks and uncertainties associated with expectations.
  8. Ability to successfully implement strategy.
  9. Changes in government policies.
  10. Impact of new Labour Codes (Code on wages 2019, Social Security 2020, Industrial Relation Code 2020, Occupational Safety, Health and Working Condition Code 2020) effective from November 21, 2025.
  11. Company monitoring finalisation of Central/State Rules and clarifications regarding new Labour Codes.
  12. Approved resource mobilisation plan for FY 2026-27 for debt securities.
  13. Approved audited annual financial statements for FY ended March 31, 2026.
  14. Preferential allotment of 471,121,055 equity shares to MUFG Bank Ltd. for Rs. 39,617.98 crores.

Corporate Governance

  1. Adherence to Code of Ethics issued by ICAI.
  2. Appointment of Non-Executive Non-Independent Directors.
  3. Nomination & Remuneration Committee.
  4. Audit Committee.

Management Discussion & Analysis

Future Strategy

  1. Long-term strategic expansion.
  2. Resource mobilisation for FY 2026-27 through various debt instruments.
  3. Commence Primary Dealer business through Shriram Overseas Investments Limited.
  4. Growth in business volumes and profits, NIM, product innovation, branch expansion, digitalisation.

Operational Focus Areas

  1. Steering business performance and profitability.
  2. Enhancing credit rating.
  3. Optimizing surplus short-term funds.
  4. Growing new businesses and effective fund mobilization.
  5. Leading executive team for business results delivery.
  6. Implementing digital roadmap (digitalisation).

Performance Drivers

  1. Net Interest Income increased by 15.58% (Q4) and 14.09% (FY26).
  2. Profit After Tax increased by 40.86% (Q4) and 20.87% (FY26, excluding exceptional items).
  3. Earnings Per Share increased by 40.77% (Q4) and 20.80% (FY26, excluding exceptional items).
  4. Assets Under Management (AUM) increased by 14.85% to Rs. 3,022,737.5 mn.
  5. Preferential allotment to MUFG Bank Ltd. bolstering capital adequacy.
  6. Credit rating upgrades from ICRA, CRISIL, India Ratings, and Fitch.

Critical Risks

  1. Risks and uncertainties associated with expectations.
  2. Ability to successfully implement strategy.
  3. Changes in government policies.