Shriram Finance Ltd (SHRIRAMFIN)
🎯 Key Takeaways
- Shriram Finance is in a phase of steady growth with improving profitability and expanding market presence, supported by consistent quarter-on-quarter revenue and margin expansion. Management is focused on operational efficiency and capital allocation within a highly competitive consumer finance landscape, maintaining strong returns on equity and capital.
- Revenue grew 7.1% QoQ to ₹13,400 in Q1FY27.
- ⚠️ High leverage (D/E of 3.80) remains a concern, especially if funding costs rise or asset quality deteriorates amid economic slowdown.
📖 The Story
Shriram Finance is in a phase of steady growth with improving profitability and expanding market presence, supported by consistent quarter-on-quarter revenue and margin expansion. Management is focused on operational efficiency and capital allocation within a highly competitive consumer finance landscape, maintaining strong returns on equity and capital. The company benefits from a diversified asset base and deep retail customer penetration, though high leverage remains a structural consideration.
📰 What's Happening
In Q1 FY27 (June 2026), Shriram Finance reported revenue of ₹13,400 crore, up from ₹11,536 crore in the same period last year, with operating profit rising to ₹4,607 crore and OPM expanding to 34.4% from 25.1%. Net profit grew to ₹3,447 crore from ₹2,155 crore, and EPS increased to ₹14.86 from ₹11.46. Management highlighted continued strong disbursement growth and improved collection efficiency in its consumer finance segment. Additionally, in August 2026, the company allotted 35,104 equity shares under its 2023 ESOP scheme to 54 employees, marginally increasing paid-up capital. There were no major strategic announcements or M&A activities disclosed in recent filings.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 11,536 | 11,912 | 12,171 | 12,513 | 13,400 |
| Operating Profit | 2,900 | 3,104 | 3,338 | 3,899 | 4,607 |
| OPM % | 25.1% | 26.1% | 27.4% | 31.2% | 34.4% |
| Net Profit | 2,155 | 2,310 | 2,524 | 3,015 | 3,447 |
| EPS | ₹11.46 | ₹12.30 | ₹13.45 | ₹16.06 | ₹14.86 |
The company has demonstrated consistent top-line and bottom-line growth over the past four quarters, with revenue rising from ₹11,536 crore in June 2025 to ₹13,400 crore in June 2026 and net profit nearly doubling over the same period. Operating margins have expanded from 25.1% to 34.4%, indicating effective cost management and pricing power. EPS growth has tracked profitability, rising from ₹11.46 to ₹14.86. Management attributes this performance to disciplined underwriting, diversified product offerings, and improved recoveries, suggesting sustainable momentum in core operations.
🔮 Management Outlook & What's Next
Management has not provided explicit forward guidance in the latest available filings. However, past commentary has emphasized maintaining credit quality, expanding rural and semi-urban reach, and leveraging technology for operational efficiency. The absence of new strategic guidance suggests confidence in the current trajectory, with focus likely on sustaining margin expansion and asset quality in a dynamic macro environment.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 376 | 376 | 376 | 376 |
| Reserves | 52,016 | 56,094 | 60,227 | 65,542 |
| Borrowings | 2.08 L Cr | 2.34 L Cr | 2.34 L Cr | 2.51 L Cr |
| Total Liabilities | 2.75 L Cr | 2.94 L Cr | 2.99 L Cr | 3.21 L Cr |
| Fixed Assets | 921 | 1,026 | 1,098 | 2,635 |
| Investments | 11,616 | 15,788 | 13,427 | 14,993 |
| Total Assets | 2.75 L Cr | 2.94 L Cr | 2.99 L Cr | 3.21 L Cr |
The balance sheet shows stable equity levels of ₹376 crore, with reserves growing from ₹56,094 crore to ₹65,542 crore over the past year, indicating retained earnings are being capitalized. Borrowings have increased slightly from ₹2.34 L Cr to ₹2.51 L Cr, reflecting ongoing funding requirements for asset expansion. Total assets rose to ₹3.21 L Cr from ₹2.94 L Cr, supporting growth in loan book. The capital structure remains leveraged, but the increase in reserves and asset base suggests reinvestment is being funded internally with manageable debt growth.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | -13,281 |
| Investing | -243 |
| Financing | +8,587 |
| Net Cash Flow | -4,937 |
👥 Shareholding Pattern
| Category | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|
| Promoters | 25.4% | 25.4% | 20.3% |
| FII | 47.2% | 45.1% | 54.8% |
| DII | 21.3% | 23.3% | 19.9% |
| Public | 4.8% | 4.9% | 4.0% |
| # Shareholders | 2,98,475 | 3,34,705 | 3,52,550 |
Promoter holding has declined from 25.38% in Q4 FY26 to 20.3% in Q1 FY27, while FII ownership has increased from 45.15% to 54.77%, suggesting institutional confidence in the company's growth story. DII holding also rose from 21.3% to 19.9% (with slight fluctuation), and the number of public shareholders has grown from 2.98 lakh to 3.52 lakh, indicating retail investor interest. The dilution from ESOP issuance is minimal and not material to ownership trends.
⚖️ Peer Comparison — Finance
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| BAJFINANCE | 6.71 L Cr | 33.0 | 10.4% | 18.1% | 3.82 |
| BAJAJFINSV | 3.20 L Cr | 31.4 | 11.4% | 26.5% | 5.50 |
| SHRIRAMFIN | 2.55 L Cr | 19.1 | 11.5% | 17.1% | 3.80 |
| TATACAP | 1.60 L Cr | 29.1 | 8.4% | 12.3% | 5.28 |
| CHOLAFIN | 1.58 L Cr | 27.3 | 9.3% | 18.9% | 6.93 |
| JIOFIN | 1.57 L Cr | 73.9 | 2.3% | 1.6% | 0.17 |
| ICICIAMC | 1.55 L Cr | 31.1 | 111.5% | 83.6% | 0.00 |
| BAJAJHLDNG | 1.25 L Cr | 14.2 | 12.4% | 12.3% | 0.00 |
| MUTHOOTFIN | 1.24 L Cr | 10.9 | 14.4% | 29.3% | 3.88 |
| PFC | 1.16 L Cr | 4.5 | 9.8% | 25.3% | 7.62 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. High leverage (D/E of 3.80) remains a concern, especially if funding costs rise or asset quality deteriorates amid economic slowdown. 2. Credit risk in the retail portfolio is rising, as indicated by management’s focus on collection efficiency and potential stress in unsecured segments. 3. Intensifying competition in the consumer finance space could pressure margins if pricing wars emerge. 4. Regulatory scrutiny in the non-banking finance sector could impact disbursement volumes or require higher provisioning.
📋 Recent Filings
-
Announcement 25 August 2026Shriram Finance announced a virtual investor meeting scheduled for August 26, 2026, from 8:15 to 9:15 AM, hosted by Morgan Stanley as part of its Indi...
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share transfer 21 August 2026Shriram Finance confirmed dematerialization of 7,125 shares between August 1-15, 2026, with RTA Integrated Registry Management Services handling the p...
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Announcement 14 August 2026Shriram Finance Limited announced it received an ESG rating of 74 from NSE Sustainability Ratings & Analytics for FY2026, placing it in the 'Leader' c...
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Announcement 13 August 2026Shriram Finance announced its participation in multiple investor meetings on August 19, 2026, including sessions with Hedge Solutions, Bandhan MF, Dym...
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Announcement 12 August 2026Shriram Finance announced a series of investor meetings scheduled for August 17-18, 2026, in Singapore, targeting global asset managers and institutio...
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🔴 Corporate Action 12 August 2026Shriram Finance approved the allotment of 35,104 equity shares of Rs.2 each to 54 employees who exercised fresh stock options under the 2023 ESOP sche...
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Announcement 7 August 2026Shriram Finance announced a scheduled investor conference on August 12, 2026, featuring major mutual funds and insurers, to discuss its investment out...
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share transfer 7 August 2026Shriram Finance confirmed dematerialization of 12,000 shares across 12 certificates from July 16 to 31, 2026, with Integrated Registry Management Serv...
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🔴 Announcement 4 August 2026No summary available
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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...
🧠 Analyst's Read
Shriram Finance is executing a stable growth strategy with improving profitability and expanding institutional ownership, but its high leverage and exposure to retail credit introduce structural risks. Investors should monitor quarterly asset quality trends, collection efficiency, and any shifts in funding costs or regulatory developments.
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 2026-09-01.
Editorial & Data Transparency Notice
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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