Sundaram Finance posted a standalone profit after tax (PAT) of ₹608 crore in Q4FY26, registering an 11.4% growth compared with ₹546 crore in the corresponding quarter last year. Total standalone income for the quarter rose 14.1% to ₹2,103 crore from ₹1,843 crore a year ago.
For the full year FY26, standalone PAT increased 18.9% to ₹1,834 crore against ₹1,543 crore in FY25. Total income climbed 17.3% to ₹7,734 crore compared with ₹6,596 crore in the previous fiscal.
Disbursements and AUM maintain momentum
The company’s disbursements for FY26 grew 14% to ₹32,321 crore from ₹28,405 crore in FY25. Q4FY26 disbursements rose 17% year-on-year to ₹8,051 crore.
Assets under management (AUM) expanded 16% to ₹59,908 crore as on March 31, 2026, compared with ₹51,476 crore a year earlier, reflecting sustained demand across lending segments despite a muted first half impacted by global tariff-related uncertainties.
Net interest income (NII) for FY26 rose 21% to ₹3,376 crore from ₹2,793 crore in FY25, while Q4FY26 NII increased 20% to ₹901 crore.
Asset quality remains stable
Gross stage 3 assets stood unchanged at 1.44% as of March 31, 2026, while provision coverage improved to 53% from 49% a year ago. Net stage 3 assets improved to 0.69% against 0.75% in FY25.
Under RBI norms for NBFCs, gross NPA improved marginally to 2.14% from 2.17%, while net NPA reduced to 1.27% from 1.38%.
The company also said it refined its Expected Credit Loss (ECL) methodology during the year by incorporating more recent historical data and machine learning-based enhancements.
Operating efficiency strengthens
Sundaram Finance reported an improvement in its cost-to-income ratio to 28.71% in FY26 from 30.80% in FY25, indicating better operating leverage and tighter cost management.
The company also maintained a comfortable capital adequacy ratio of 19.1%, while return on assets improved to 3.03% from 2.85% in FY25.
During FY26, the company accounted for ₹75 crore under exceptional items towards the incremental impact of new Labour Codes.
Management commentary
Managing Director Rajiv Lochan said : “Our overall performance for the year has been well balanced across growth, asset quality and profitability.”
Executive Vice Chairman Harsha Viji said the second half of FY26 witnessed stronger momentum aided by GST 2.0 reforms, monetary policy transmission and fiscal stimulus measures.
Management remains optimistic on India’s macroeconomic outlook, citing resilient domestic consumption, public capital expenditure and a gradual revival in private investments, while continuing to monitor geopolitical risks.
Analytical view
Sundaram Finance’s FY26 performance reflects a balanced growth strategy rather than aggressive expansion. The company has delivered double-digit growth in disbursements, AUM, NII and profitability while maintaining stable asset quality, a key indicator for NBFCs amid uncertain global conditions.
The strong rise in NII suggests healthy lending spreads and improved yields, while the decline in cost-to-income ratio indicates operational efficiency gains. Stable stage 3 assets and better provision coverage further strengthen investor confidence in the lender’s underwriting discipline.
The improvement in return on assets and sustained capital adequacy position the company well for future growth. With demand recovery visible in H2FY26 and continued infrastructure-led economic activity, Sundaram Finance appears strategically placed to gain market share in the vehicle and equipment financing segments.
The board has declared a final dividend of ₹24 per share (240%).