Shriram Finance Q2 profit rises 7% to ₹2,314 cr, asset quality improves

Shriram Finance's Q2 FY26 profit rose 7 per cent year-on-year to Rs 2,314 crore as total income surged 18 per cent and NPAs declined; the firm expects up to 20 per cent loan growth

Shriram Finance Ltd, one of the largest retail non-banking financial companies (NBFCs) in India, posted a 7 per cent rise in consolidated net profit for the second quarter of 2025-26 (Q2 FY26) to Rs 2,314 crore, compared with Rs 2,153 crore during the July–September quarter of FY25.

 

For the period under review, total income rose 18 per cent to Rs 11,921 crore, from Rs 10,097 crore at the end of September 2024. Interest income during the period also increased 18 per cent to Rs 11,551 crore, versus Rs 9,815 crore in Q2 FY25.

 

Asset quality strengthens amid broad-based growth

 

The company witnessed an improvement in asset quality, with gross non-performing assets (NPAs) declining to 4.57 per cent of gross advances during the second quarter of this fiscal, compared with 5.32 per cent during the same period last year. Net NPA also reduced to 2.49 per cent from 2.64 per cent in Q2 FY25.

 

Umesh Revankar, Executive Vice-Chairman, Shriram Finance, said the company expects 15–20 per cent loan growth over the next two quarters of FY26 and aims to close the year with around 17 per cent growth. “The second quarter normally sees strain in asset quality. This time, it improved. Overall, monsoon spread was also good during the period,” he said.

 

Expenses rise 20 per cent; interim dividend declared

 

The NBFC’s total expenses during the period under review stood at Rs 8,808 crore, up 20 per cent from Rs 7,345 crore during the same period in FY25. The board declared an interim dividend of 240 per cent, or Rs 4.80 per share.

 

Total assets under management (AUM) as of September 2025 increased 15.74 per cent to Rs 2.81 trillion, compared with Rs 2.43 trillion in September 2024 and Rs 2.72 trillion in June 2025.

 

Board approves key leadership changes

 

The board on Friday approved the re-appointment of Jugal Kishore Mohapatra as an independent director of the company for a second term of three consecutive years, commencing December 4, 2025, to December 3, 2028. He also serves as chairman of the board.

 

It cleared the re-designation of Parag Sharma, currently chief financial officer, as managing director and chief financial officer, effective December 5, in place of Y S Chakravarti.