Shriram Finance Ltd has reported around 60% year-on-year jump in its standalone net profit in the June quarter, driven by strong growth in lending, higher net interest income and expansion of its loan portfolio.
The non-banking financial company (NBFC) posted a profit after tax (PAT) of ₹3,444.56 crore for the first quarter ended June 30, 2026, up 59.79% from ₹2,155.73 crore in the corresponding quarter last year.
Total income rose 16.21% year-on-year to ₹13,412 crore, reflecting healthy business growth across its lending operations.
Lending business gathers pace
Shriram Finance’s Net Interest Income (NII)—a key indicator of a lender’s core earnings—increased 33.67% to ₹8,055.70 crore, compared with ₹6,026.43 crore in the year-ago quarter.
The sharp rise in NII indicates continued growth in the company’s loan book and improved income from lending activities despite a competitive borrowing environment.
The company’s Assets Under Management (AUM) expanded 15.26% year-on-year to ₹3,13,798 crore as of June 30, 2026, from ₹2,72,249 crore a year earlier. On a sequential basis, the AUM increased from ₹3,02,274 crore at the end of March 2026, highlighting sustained credit demand during the quarter.
Shareholder returns improve
Basic earnings per share (EPS) climbed 29.41% to ₹14.83, compared with ₹11.46 in the corresponding quarter of the previous financial year, reflecting the company’s improved profitability.
The performance underscores Shriram Finance’s ability to sustain growth in its retail lending business even as the NBFC sector navigates changing interest rate dynamics and rising competition from banks.
Industry analysts believe continued expansion in commercial vehicle finance, MSME lending and rural credit demand is supporting growth for diversified retail lenders such as Shriram Finance.
With strong growth in earnings, net interest income and assets under management, the company has begun FY27 on a solid footing, positioning itself to benefit from sustained demand for retail and commercial credit across the country.