Shriram Finance Limited (SHRIRAMFIN)
🎯 Key Takeaways
- Shriram Finance is in a high-growth phase driven by strong auto sector tailwinds, particularly in electric vehicles, and expanding its asset base across vehicle financing and gold loans. Management is targeting 18% full-year growth for FY'27 despite near-term rural income volatility from monsoon uncertainty.
- Revenue grew 6% QoQ to ₹10,698 in Q3FY25.
- ⚠️ 1) Rural income volatility due to monsoon uncertainty could impact loan demand and repayment capacity. 2) Potential dilution from future NCD/bond issu
📖 The Story
Shriram Finance is in a high-growth phase driven by strong auto sector tailwinds, particularly in electric vehicles, and expanding its asset base across vehicle financing and gold loans. Management is targeting 18% full-year growth for FY'27 despite near-term rural income volatility from monsoon uncertainty. The company has demonstrated consistent profitability and asset quality improvement, supported by robust disbursement and AUM growth.
📰 What's Happening
In Q1 FY'27, Shriram Finance reported 19.51% YoY disbursement growth and 15.26% AUM growth, with PAT surging 59.79% YoY to ₹3,444.56 crores, driven by 33.67% YoY net interest income growth and 94.8% YoY growth in EV sales. The Board approved a ₹39,617.98 crore preferential issue to MUFG Bank at ₹840.93 per share to raise 20% equity, which was fully deployed for business funding and borrowings repayment. Additionally, the company announced plans to explore raising funds via private placement of NCDs and subordinated bonds between August and October 2026, subject to regulatory and committee approvals.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Q4FY23 | Q1FY24 | Q2FY24 | Q3FY24 | Q4FY24 | Q1FY25 | Q2FY25 | Q3FY25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 7,966 | 8,293 | 8,884 | 9,301 | 9,904 | 9,605 | 10,090 | 10,698 |
| Operating Profit | 5,639 | 6,069 | 6,344 | 6,557 | 7,099 | 6,949 | 7,261 | 9,226 |
| OPM % | 70.6% | 73.2% | 71.3% | 70.5% | 71.5% | 72.3% | 71.9% | 71.7% |
| Net Profit | 1,288 | 1,712 | 1,792 | 1,874 | 2,021 | 2,031 | 2,153 | 3,249 |
| EPS | ₹34.01 | ₹45.53 | ₹47.61 | ₹49.70 | ₹53.47 | ₹53.82 | ₹56.93 | ₹17.27 |
The company has delivered sequential improvement in profitability and efficiency, with operating profit margin expanding to 71.7% in Q3FY25 from 70.5% in Q3FY24, while net profit growth outpaced revenue expansion. EPS rose sharply to ₹17.27 in Q3FY25 from ₹56.93 in Q2FY25 (though this reflects a base effect), indicating strong bottom-line momentum. Despite high OPM levels, management expects NIM to gradually decline to 8.5% in the medium term as the loan book shifts toward new vehicle mix (20-25% of book) and gold loans double to 5% of total assets.
🔮 Management Outlook & What's Next
Management expects 18% growth for FY'27 but has deferred final guidance pending reassessment in Q2 amid monsoon-related rural income uncertainty. They highlighted a strategic shift toward new vehicle financing (targeting 20-25% of book) and doubling the gold loan portfolio to 5% of total assets. While no formal forward guidance was provided in the latest board meeting filing, prior commentary underscores a focus on asset quality, cost efficiency (25.48% cost-to-income ratio), and expanding into higher-growth segments like EVs.
Extracted from official company announcements. Not StockFin.ai's opinion.
⚖️ Peer Comparison — Finance
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| Bajaj Finance Limited | 5.67 L Cr | 30.9 | 22.4% | 18.6% | 1.37 |
| Bajaj Finserv Limited | 2.77 L Cr | 14.4 | — | 13.4% | — |
| Shriram Finance Limited | 2.21 L Cr | 23.3 | — | — | — |
| Jio Financial Services Limited | 1.54 L Cr | 92.1 | — | — | — |
| Power Finance Corporation Limited | 1.47 L Cr | 5.0 | — | — | — |
| Muthoot Finance Limited | 1.33 L Cr | 26.6 | — | — | — |
| Cholamandalam Investment and Finance Company Limited | 1.32 L Cr | 31.9 | — | — | — |
| Tata Capital Limited | 1.31 L Cr | — | — | — | — |
| Indian Railway Finance Corporation Limited | 1.29 L Cr | 18.4 | — | — | — |
| Bajaj Holdings & Investment Limited | 1.15 L Cr | 15.3 | — | — | — |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Rural income volatility due to monsoon uncertainty could impact loan demand and repayment capacity. 2) Potential dilution from future NCD/bond issuance or equity raises may pressure EPS. 3) NIM compression to 8.5% in medium term may affect profitability if funding costs rise. 4) Regulatory changes in labor laws or NBFC compliance could increase operational costs.
📋 Recent Filings
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Announcement 31 July 2026Shriram Finance Limited received an upgraded ESG Impact Rating of 83 (Outstanding) from ICRA ESG Ratings on July 31, 2026, reflecting improved environ...
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🟡 Board Meeting 27 July 2026Shriram Finance disclosed its Monitoring Agency Report for the June 2026 quarter, confirming utilization of Rs **39,617.98 crores** from a Rs **39,617...
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🔴 Financial Results 27 July 2026Shriram Finance reported robust Q1 FY'27 performance with 19.51% YoY disbursement growth, 15.26% AUM growth, and 59.79% YoY PAT growth, driven by stro...
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🟡 Board Meeting 24 July 2026Shriram Finance approved Q1 FY27 unaudited results showing profit after tax of ₹3,444.56 crores, up 59.79% YoY, with EPS at [amount not verified]The b...
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Announcement 24 July 2026Shriram Finance announced on July 24, 2026, that its board approved unaudited Q1 FY27 financial results and a debt securities issuance plan. The filin...
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🟡 deviation variation 24 July 2026Shriram Finance Limited raised Rs 39,617.98 crores via preferential issue in Q1 FY26 and utilized 94% of proceeds for business purposes, with no devia...
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🟡 Board Meeting 24 July 2026Shriram Finance announced it will explore raising funds through private placement of redeemable non-convertible debentures (NCDs) and subordinated bon...
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Announcement 24 July 2026Shriram Finance announced unaudited Q1 FY2026 results showing profit after tax of Rs 3,452.77 crore, up sharply from Rs 2,159.39 crore a year earlier,...
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share transfer 24 July 2026Shriram Finance Limited confirmed via SEBI filing that its registrar, Integrated Registry Management Services, completed dematerialization of seven sh...
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🟡 Board Meeting 21 July 2026Shriram Finance announced that its board recommended and shareholders approved a final dividend of 300% i.e. Rs.6 per share with face value Rs.2 for F...
🧠 Analyst's Read
Shriram Finance is executing a disciplined growth strategy with strong profitability and asset quality, supported by sector tailwinds in auto and gold financing. Investors should monitor rural demand trends, progress on EV financing targets, and the outcome of the planned NCD issuance, which could influence capital structure and funding costs.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-08-02.
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This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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