Strong guidance positive for Shriram Finance on robust Q2 performance

Shriram Finance delivered a better-than-expected Q2FY26, with stronger margins, stable credit costs, and improving vehicle and MSME trends, supporting a confident outlook for the rest of the year

Shriram Finance (SHFL) posted a beat on estimates for Q2FY26, with good growth and improved asset quality.

 

There was improved net Stage-3 and reduced non-performing loans (NPLs).

 

Credit cost remains moderate at well under 2 per cent of average assets under management (AUM), which is the guidance target for FY26.

 

The guidance was confident and stable for volume growth driven by market share gains and hopes of better demand in H2FY26.

 

While AUM growth guidance is unchanged at 15 per cent, the management believes AUM growth for FY26 would surpass the guidance.

 

AUM growth was good across used commercial vehicles