Shriram Finance Q3 PAT up 21%, excluding one-time gain

Shriram Finance, a leading vehicle financing company, announced a 21% year-on-year increase in net profit to ₹2,522 crore for the December quarter (Q3FY26), excluding a one-time gain of ₹1,489 crore recorded in the same period last fiscal year from the sale of its stake in Shriram Housing Finance. When including last year’s exceptional gain, the current quarter’s net profit reflects a 29% decline compared to Q3FY25.

The company’s net interest income (NII) grew 16% year-on-year to ₹6,764 crore. Net interest margin (NIM) improved to 8.58% from 8.19% in the previous quarter, attributed to reduced funding costs following Shriram Finance’s strategic partnership with Japan’s MUFG Bank. This collaboration – involving a ₹40,000 crore investment by MUFG for a 20% stake – prompted multiple credit agencies to revise their outlooks on Shriram Finance from stable to positive, with one agency upgrading its credit rating.

Shriram Finance’s assets under management (AUM) expanded 15% year-on-year to ₹2.91 lakh crore as of December 2025. Commercial vehicles constituted 46% of the loan portfolio, followed by passenger vehicles at 22%.

Asset quality showed improvement with gross stage-3 assets declining by 3 basis points quarter-on-quarter to 4.54%, while net stage-3 assets fell 11 basis points to 2.38%. The company’s board is convening to deliberate on debt fundraising plans scheduled between February and April 2026.

Published on January 23, 2026