Sundaram Finance Ltd (SUNDARMFIN)
🎯 Key Takeaways
- Sundaram Finance Ltd is in a phase of sustained, profitable growth with improving asset quality and expanding AUM, supported by strong capital adequacy and consistent profitability. Management emphasizes sustainable, best-in-class growth within a resilient macro environment, underpinned by its GQP philosophy and disciplined credit metrics.
- Revenue grew 3.3% QoQ to ₹2,644 in Q1FY27.
- ⚠️ 1) Macroeconomic headwinds from geopolitical tensions and global growth slowdown could impact auto sector performance, which is a key driver of disbur
- Market Cap
- ₹49,452
- P/E Ratio
- 22.1
- P/B Ratio
- 3.32
- ROE
- 14.9%
- ROCE
- 9.1%
- Debt/Equity
- 4.68
- Div Yield
- 0.54%
- Promoter
- 37.2%
📖 The Story
Sundaram Finance Ltd is in a phase of sustained, profitable growth with improving asset quality and expanding AUM, supported by strong capital adequacy and consistent profitability. Management emphasizes sustainable, best-in-class growth within a resilient macro environment, underpinned by its GQP philosophy and disciplined credit metrics.
📰 What's Happening
In Q1FY27, Sundaram Finance reported 22% YoY growth in PAT to Rs. 522 crores, driven by 22% disbursement growth to Rs. 8,947 crores and 17% AUM expansion to Rs. 62,275 crores, with net Stage 3 assets improving to 0.88%. The Board reappointed P N Srikant as Chief Compliance Officer for a five-year term through August 10, 2031, ensuring continuity in regulatory oversight. Shareholders approved the FY2026 audited financials, including a 19% net profit increase to Rs. 1,834 crores and a final dividend of Rs. 24 per share (total Rs. 40 including interim), alongside re-elections of directors Harsha Viji and Rajiv Lochan.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 2,386 | 2,514 | 2,560 | 2,644 |
| Operating Profit | 635 | 733 | 753 | 758 |
| OPM % | 26.6% | 29.2% | 29.4% | 28.7% |
| Net Profit | 491 | 522 | 581 | 569 |
| EPS | ₹44.29 | ₹49.12 | ₹50.28 | ₹57.71 |
Operating revenue has grown steadily over the last four quarters, rising from Rs. 2,386 crores in September 2025 to Rs. 2,644 crores in June 2026, with operating profit margin holding firm above 28%. Net profit increased from Rs. 491 crores to Rs. 569 crores over the same period, reflecting operational efficiency and scale expansion. This growth aligns with management's focus on sustainable profitability and asset quality improvement, as evidenced by rising AUM and declining Stage 3 asset ratio.
🔮 Management Outlook & What's Next
Management projects FY2027 growth of 6.5-7.0% amid 5.1% CPI inflation, maintaining its GQP strategy focused on sustainable growth and profitability. The Board emphasized continued discipline in credit management and capital allocation amid geopolitical and supply-side risks, while highlighting India's resilient 7.6% GDP growth and strong automotive sector performance as tailwinds for future expansion.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 110 | 110 | 110 | 110 |
| Reserves | 13,087 | 12,400 | 14,783 | 15,019 |
| Borrowings | 61,084 | 56,256 | 69,636 | 65,830 |
| Total Liabilities | 75,337 | 69,659 | 85,795 | 82,216 |
| Fixed Assets | 795 | 764 | 1,410 | 808 |
| Investments | 6,481 | 6,423 | 9,081 | 9,841 |
| Total Assets | 75,337 | 69,659 | 85,795 | 82,216 |
The balance sheet shows a significant rise in total assets from Rs. 75,337 crores in March 2025 to Rs. 85,795 crores in March 2026, driven by asset growth. Borrowings increased to Rs. 69,636 crores from Rs. 61,084 crores, while equity and reserves grew modestly to Rs. 14,893 crores. This indicates active capital deployment toward asset expansion, supported by stable funding structures and strong capital adequacy at 18.95%, reflecting prudent financial management.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | -5,892 |
| Investing | -1,371 |
| Financing | +7,478 |
| Net Cash Flow | +215 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 37.2% | 37.2% | 37.2% | 37.2% |
| FII | 19.1% | 19.1% | 19.0% | 18.6% |
| DII | 6.8% | 7.4% | 7.7% | 8.0% |
| Public | 26.7% | 26.6% | 26.4% | 26.4% |
| # Shareholders | 55,894 | 55,416 | 57,271 | 56,309 |
FII holdings have slightly declined from 19.13% in Q3FY26 to 18.58% in Q1FY27, while DII holdings rose marginally from 7.42% to 8%. Promoter holding remained stable at 37.21% over the last four quarters, and the number of public shareholders increased to 26.42% from 26.38%. The stable promoter stake and growing institutional base suggest sustained confidence, with minor shifts indicating balanced investor sentiment.
⚖️ Peer Comparison — Finance
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| BAJFINANCE | 6.13 L Cr | 30.2 | 10.4% | — | 3.82 |
| BAJAJFINSV | 2.80 L Cr | 27.5 | 11.4% | — | 5.50 |
| SHRIRAMFIN | 2.30 L Cr | 17.3 | 11.5% | — | 3.80 |
| ICICIAMC | 1.59 L Cr | 31.8 | 111.5% | — | 0.00 |
| JIOFIN | 1.45 L Cr | 68.4 | 2.3% | — | 0.17 |
| CHOLAFIN | 1.40 L Cr | 24.2 | 9.3% | — | 6.93 |
| TATACAP | 1.39 L Cr | 25.4 | 8.4% | — | 5.28 |
| BAJAJHLDNG | 1.21 L Cr | 13.6 | 12.4% | — | 0.00 |
| MUTHOOTFIN | 1.11 L Cr | 9.8 | 14.4% | — | 3.88 |
| PFC | 1.09 L Cr | 4.2 | 9.8% | — | 7.62 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Macroeconomic headwinds from geopolitical tensions and global growth slowdown could impact auto sector performance, which is a key driver of disbursements. 2) Rising borrowings to fund asset growth may pressure leverage ratios if growth moderates. 3) Regulatory and compliance risks remain, though mitigated by leadership continuity. 4) Asset quality pressure could emerge if economic conditions deteriorate, despite current Stage 3 asset ratio of 0.88%.
📋 Recent Filings
- Announcement2026-08-20Sundaram Finance Limited announced the exercise of stock options under its 2008 Employee Stock Option Scheme, granting 20 shares to a single employee …
- Announcement2026-08-19Sundaram Finance Limited announced the exercise of 871 stock options under its 2008 Employee Stock Option Scheme, granted in May 2023, by four option …
- Announcement2026-08-18Sundaram Finance announced that 25 stock options under ESOP Grant 14 and 40 under Grant 15 were exercised on August 18, 2026, transferring shares to o…
- Announcement2026-08-17Sundaram Finance Limited announced the exercise of stock options under its 2008 Employee Stock Option Scheme, granting 170 shares to two holders on Au…
- Announcement2026-08-13Sundaram Finance Limited announced the exercise of stock options under its 2008 Employee Stock Option Scheme, granting 132 shares to two holders on Au…
- Announcement2026-08-12Sundaram Finance announced that 1 employee held 80 options and 3 employees held 195 options under ESOP Grants 13 and 15, exercised on August 12, 2026,…
- Announcement2026-08-11Sundaram Finance Limited announced the exercise of stock options under its 2008 Employee Stock Option Scheme, granting 40 options to a single employee…
- 🔴 Financial Results2026-08-03Sundaram Finance reported a 22% YoY rise in profit after tax to Rs. 522 crores for Q1FY27, driven by 22% growth in disbursements to Rs. 8,947 crores a…
- 🟡 Board Meeting2026-08-03Sundaram Finance reappointed P N Srikant as Chief Compliance Officer and Company Secretary for five years effective August 11, 2026, extending his ten…
- 🟡 Board Meeting2026-07-22Sundaram Finance shareholders approved the adoption of audited financial statements for FY2026 showing a 19% net profit increase to ₹1,834 crores and …
🧠 Analyst's Read
Sundaram Finance demonstrates consistent profitability, strong asset growth, and improving credit metrics, supported by strategic leadership continuity and shareholder-friendly returns. Investors should monitor quarterly disbursement trends, asset quality trajectory, and macro-linked auto sector dynamics as key near-term indicators.
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 2026-09-30.
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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