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Shriram Finance Limited (SHRIRAMFIN)

Financial Services · Finance · NSE · Updated 16 June 2026

₹1,000.65 ↑ 47.99% (1Y)

🎯 Key Takeaways

Shriram Finance is in a phase of disciplined growth with improving profitability and asset quality, supported by strategic capital management and favorable credit rating upgrades. Management is focused on scaling operations while maintaining strict risk controls, particularly in subprime segments.
Revenue grew 6% QoQ to ₹10,698 in Q3FY25.
⚠️ 1) Subprime lending exposure remains a structural concern, as highlighted by Moody's despite rating improvement. 2) Rising employee stock option exerc

Market Cap

₹2.21 L Cr

P/E Ratio

23.3

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

Shriram Finance is in a phase of disciplined growth with improving profitability and asset quality, supported by strategic capital management and favorable credit rating upgrades. Management is focused on scaling operations while maintaining strict risk controls, particularly in subprime segments.

📰 What's Happening

In Q3FY25, the company reported revenue of ₹10,698 crore and operating profit of ₹9,226 crore, reflecting consistent top-line expansion. Management highlighted improved asset quality and capital efficiency during the quarter. A recent Baa3 rating upgrade from Moody's, driven by a ₹396 billion capital infusion from MUFG Bank, strengthened its balance sheet and funding profile. Additionally, the company has been actively issuing shares under its 2023 ESOP scheme, with two separate allotments in May and June 2026 increasing paid-up capital marginally, indicating ongoing employee incentive alignment.

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

Revenue has grown steadily from ₹7,966 crore in Q4FY23 to ₹10,698 crore in Q3FY25, with operating margins holding firm above 71% despite macroeconomic headwinds. Profitability improved significantly, with net profit rising to ₹3,249 crore in Q3FY25 from ₹1,288 crore a year ago, and EPS increasing to ₹17.27. This growth appears to be underpinned by expanding loan book volumes and efficient cost management, as highlighted in management commentary on operational resilience and portfolio diversification.

🔮 Management Outlook & What's Next

Management expects to maintain a Capital to Risk-Weighted Assets (TCE/TMA) ratio above 22% over the next 3-4 years, signaling a focus on capital adequacy and risk-adjusted growth. This target was cited following the Moody's upgrade, reflecting confidence in sustained financial flexibility and asset quality improvement despite persistent subprime exposure.

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

BAJFINANCE BAJAJFINSV JIOFIN PFC MUTHOOTFIN

⚠️ Risk Factors

1) Subprime lending exposure remains a structural concern, as highlighted by Moody's despite rating improvement. 2) Rising employee stock option exercises could exert downward pressure on share price through dilution. 3) Capital adequacy targets are being met, but any deterioration in asset quality or funding costs could pressure margins. 4) The company's growth trajectory depends on continued credit demand in the semi-urban and rural segments, which may be vulnerable to macroeconomic slowdowns.

📋 Recent Filings

🧠 Analyst's Read

Shriram Finance demonstrates consistent operational momentum and improving financial metrics, supported by strategic capital raises and rating validation. Investors should monitor quarterly asset quality trends, subprime portfolio performance, and the pace of ESOP-related dilution as key near-term catalysts.

Based on filing content and financial data. Not a recommendation.

✨ Deep Dive with AI on SHRIRAMFIN

Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-06-16.