Shriram Finance to redraw biz plan in FY27; to focus on new vehicles
Shriram Finance is set to revamp its strategy, focus on new vehicle financing and boost growth as Japan's MUFG completes a $4.4 billion investment
 "Shriram Finance to redraw biz plan in FY27; to focus on new vehicles")
Shriram Finance Ltd (SFL), one of the largest retail non-banking financial companies (NBFCs) in India, is set to redraw its business plan by coming out with a new strategic outlook in 2026-27 (FY27), along with the completion of a $4.4 billion investment by Japan’s MUFG Bank. According to the road map, the company will focus more on new vehicle financing, a top company official told Business Standard.
"As the business comes in during the next financial year, we will have a totally different business plan, which includes getting deeper into transportation financing, including new vehicle financing," said Umesh Revankar, executive vice-chairman, Shriram Finance. This is seen as a strategy to retain existing customers who move out over a period as they grow and require new vehicles or larger-ticket-size loans.
Revankar said through this, the company's assets under management (AUM) growth, which is around 15 per cent now, will increase to 18 per cent soon. Its total AUM was seen at ₹2.91 trillion in December 2025. According to a report by ICICI Securities, around 80 per cent of the company's AUM mix comes from the wheels segment, which includes commercial vehicles (CVs), passenger vehicles (PVs), commercial equipment (CE), farm equipment (FE), and two-wheelers (2Ws). Out of this wheels business, 97 per cent is coming from used vehicles and new vehicles are only 3 per cent.
"We have been doing mostly used vehicles. We would like to increase new vehicle funding. Our customers have been going to the competition. We would like to address them directly by offering better terms," Revankar said.
The report indicates that the company's plan is to double its new vehicle portfolio over the next three years, focusing on existing customers. The current share of such customers who move out over a period of time is reportedly 30 per cent.
Through the largest foreign direct investment (FDI) in India’s financial services sector, MUFG Bank will take around a 20 per cent stake in Shriram Finance, the country's second-largest retail NBFC. The company is targeting to close the deal by the end of this financial year (FY26).
Taking the Japanese major on board is likely to be beneficial for the Indian firm's future fundraising. "Because they are a bank, and more than a 100-year-old one with international best practices, there will be a lot of value additions on the governance front. On the technology side, they are ahead, being a bank with a presence in other Asian countries like Indonesia, Thailand, Vietnam, and the Philippines. That is going to have some impact on the way we will go ahead with the retail implementation of our digital technology," Revankar said.
"The third one is going to be on the fundraising. As they have a strong presence in the international market, we will be able to raise resources at much more reasonable prices going forward. It will be a huge positive within the next couple of years. One or two rating agencies have already increased our ratings, another one has provisionally increased," he added.
Early this month, SFL shareholders have approved three proposals related to the non-bank lender's deal with MUFG.