Shriram Finance net profit up 60% in Q1 on NII growth

Shriram Finance reported on Friday that its standalone net profit for Q1 FY27 (quarter ended June 2026) jumped 60% to ₹3,445 crore, up from ₹2,156 crore a year earlier. The increase was driven by stronger core net interest income and other income.

Net interest income for Q1 FY27 rose about 34% to ₹8,056 crore, compared with ₹6,026 crore in the same quarter last year.

Besides strong growth of 21% in passenger‑vehicle finance and 19% in commercial‑vehicle finance, interest income got a boost from a 45% rise in gold‑loan advances. Other income also climbed 44% to reach ₹1,105 crore.

Commercial‑vehicle assets under management formed the biggest chunk at ₹1,47,034 crore, representing 47% of total AUM. Passenger‑vehicle AUM stood at ₹68,650 crore (22%). Construction‑equipment AUM fell 25% during the quarter.

Total assets under management as of June 30 grew 15.3% to ₹3,13,798 crore, up from ₹2,72,249 crore a year earlier and ₹3,02,274 crore at end‑March 2026. The firm had forecast an AUM increase of 18% for FY27 in its April earnings call.

Asset quality showed slight pressure on a gross basis but stayed stable net‑wise. Gross NPA (or gross stage‑3 assets) was 4.64% at end‑June 2026, versus 4.58% in the March quarter and 4.53% a year ago. Net NPA held steady at 2.33% sequentially, down from 2.57% in the same quarter last year. The deterioration was mainly traced to the construction‑equipment and MSME portfolios.

Loan‑loss provisions for the quarter amounted to ₹1,463 crore, compared with ₹1,286 crore in June 2025.

During the period, MUFG Bank – the Japanese arm of Mitsubishi UFJ Financial Group – finalized its purchase of a 20% equity stake in Shriram Finance, marking the largest cross‑border investment in India’s financial‑services industry to date.

Shriram Finance is the flagship entity of the Shriram group, which also operates in consumer finance, life insurance, general insurance, stock broking and distribution. The company serves small road‑transport operators and small businesses, leading the organised financing of used commercial vehicles and two‑wheelers. It operated 3,225 branches as of June 2026.

Published on July 24, 2026