Shriram Finance Ltd., one of India’s leading non-banking financial companies (NBFCs), had a very good financial performance in the first quarter of FY27 with strong growth in profitability, net interest income (NII), expansion of margins and improvement in asset quality.
The company’s Board also approved a resource mobilisation plan to raise funds through debt securities in domestic and international markets between August 1 and October 31, 2026, to support future business growth.
Profit Jumps Nearly 60%
Shriram Finance posted a net profit on a standalone basis of ₹3,445 crore in the quarter ended June 2026, from a net profit of ₹2,156 crore for the same quarter last year.
On a year-on-year basis, net profit grew by 14.3 percent to ₹3,014 crore as against ₹3,012 crore in the March quarter.
Net Interest Income (NII) Grows Strongly
The company’s Net Interest Income (NII) grew 33.7% year-on-year to ₹8,056 crore in Q1 FY27 from ₹6,026 crore in Q1 FY26.
Quarterly NII increased 16.8% from ₹6,899 crore as the loan growth and lending performance were good, and were also good in 2-3 months.
Net Interest Margin Expands
Shriram Finance's Net Interest Margin (NIM) increased significantly to 9.04% from:
8.11% in Q1 FY26
8.61% in Q4 FY26
The margin expansion indicates stronger profitability from the lending operations of the company.
Operating Profit Rises 45%
Operating profit in the year-ago period increased 45.2% YoY to ₹6,085 crore from ₹4,192 crore in the previous quarter.
On a sequential basis, operating profit was also up 14.3%, which is another sign of operational momentum.
Asset Quality
The company’s asset quality remained stable with an improvement in net bad loans.
- Gross Stage 3 Assets: 4.64%.
- 4.53% a year ago.
- 4.58% in the previous quarter.
- Net Stage 3 Assets: 2.33%.
- Improved from 2.57% a year earlier.
- Unchanged from the March quarter.
The decline in net Stage 3 assets is reflective of better recovery and credit quality despite a slight increase in gross Stage 3 assets.
Q1 FY27 Financial Highlights
Metric Q1 FY27 Q1 FY26 Growth
Net Profit ₹3,445 crore ₹2,156 crore +59.8%
Net Interest Income ₹8,056 crore ₹6,026 crore +33.7%
Operating Profit ₹6,085 crore ₹4,192 crore +45.2%
Net Interest Margin 9.04% 8.11% Improved
Gross Stage 3 Assets 4.64% 4.53% Stable
Net Stage 3 Assets 2.33% 2.57% Improved
Fundraising Plan Approved
The Board approved a resource mobilisation programme to raise funds through:
Redeemable Non-Convertible Debentures (NCDs)
Subordinated Debentures
Bonds
Notes
Other debt instruments
The fundraising could be done in one or more tranches in domestic and overseas markets between August and October 2026.
MUFG Investment Update
Shriram Finance also disclosed that during the quarter, it utilised ₹37,451 crore from the proceeds raised through the preferential allotment to MUFG.
The remaining ₹2,167 crore has been invested in liquid mutual funds until deployment.
Outlook
The strong growth in earnings, healthy expansion in net interest margins, improving asset quality, and planned capital raising position Shriram Finance well for future growth. Investors will continue to monitor loan growth, asset quality, funding costs, and management guidance in the coming quarters.
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