Growth guidance and margin recovery positive for Shriram Finance

SHFL's Q1FY26 net rose 9% year-on-year with stable credit costs, strong disbursement trends and margin guidance of 8.5% by Q4 despite high liquidity on the balance sheet

Shriram Finance (SHFL) reported a stable Q1FY26. It reported net profit growth of 9 per cent year-on-year (Y-o-Y) and 1 per cent quarter-on-quarter (Q-o-Q), with return on assets (RoA) at 2.5 per cent and return on equity (RoE) at 15 per cent during the period. Disbursement growth moderated to 11 per cent Y-o-Y, leading to assets under management (AUM) growth moderation to 17 per cent Y-o-Y and 3 per cent Q-o-Q.

 

The net interest income (NII) growth was low at 10 per cent Y-o-Y and flat Q-o-Q, as net interest income (NIM) (calculated) was down 35 basis points (bps) Q-o-Q