Shriram Finance down 5% as company receives GST penalty order from tax dept

Shriram Finance shares slipped 5.3 per cent on the BSE, registering the day’s low at ₹943.95 per share. The selling on the counter came after the company received a tax order from the Commercial Tax Officer, Chennai. 

At 12:54 PM, Shriram Finance’s share price was trading 5.05 per cent lower at ₹946.6 per share on BSE. In comparison, BSE Sensex gained 0.44 per cent at 81,074.5.  

Shriram Finance informed stock exchanges that it has received an order from the Office of the Commercial Tax Officer, Chennai South (Tamil Nadu) levying a penalty of ₹46,91,115 for FY 2022–23, relating to the erstwhile Shriram City Union Finance Ltd, which was amalgamated with Shriram Finance with effect from April 1, 2022. 

The demand for FY 2022-2023 has arisen on account of the following:

• Disallowance of input tax credit (ITC) taken on payment of the reverse charge mechanism (RCM).
• Credit notes issued.

Shriram Finance stated that the order is not expected to have a material impact on its financials, operations, or other activities. However, it added that, given the amount involved and “commercial prudence”, it is awaiting an opinion from its tax consultant on the Tamil Nadu demand order.  ALSO READ | Shilchar Technologies jumps 10% after posting Q3 results; PAT up 22% YoY 

That apart, in Q3, Shriram Finance posted a 22 per cent decline in net profit during the third quarter of 2025–26 (FY26) to ₹2,529.65 crore. This is against ₹3,248.64 crore during the same period last financial year (FY25). Shriram Finance’s total income rose 14 per cent to ₹12,196.53 crore. 

Total assets under management, as of December 2025, increased by 14.63 per cent to ₹2.91 trillion. This compares to ₹2.54 trillion as of December 2024 and ₹2.81 trillion as of September 2025. Net interest income for the third quarter ended December 2025 increased by 16.17 per cent to ₹6,764.09 crore. This is against ₹5,822.69 crore in the same period of the previous year. 

Total assets under management — as of December 2025 — increased by 14.63 per cent to Rs 2.91 trillion. This compares to Rs 2.54 trillion as of December 2024 and Rs 2.81 trillion as of September 2025.