Shriram Finance shares drop after Q3 profit slips 22% YoY; outlook here

Centrum Broking said that while Shriram Finance's fundamentals remain sound, the sharp re-rating has already priced in near-term growth and margin tailwinds

Shares of Shriram Finance Ltd. slipped nearly 2 per cent on Tuesday after the company reported a 22 per cent year-on-year (Y-o-Y) decline in net profit, with analysts flagging valuation concerns that could cap near-term upside.

 

The non-banking financial company's (NBFC) stock fell as much as 1.9 per cent during the day to ₹984.2 per share, the biggest intraday fall since January 23 this year. Shriram Finance stock pared losses to trade 0.45 per cent lower at ₹999.3 apiece, compared to a 0.26 per cent advance in Nifty 50 as of 10:35 AM. 

 

Shares of the company fell for the second straight session and currently trade at 1.2 times the average 30-day trading volume, according to Bloomberg. The counter has risen 0.3 per cent this year, compared to a 3.8 per cent decline in the benchmark Nifty 50. Shriram Finance has a total market capitalisation of ₹1.88 trillion.   CATCH STOCK MARKET UPDATES TODAY LIVE

 

Shriram Finance Q3 results 

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.

Analysts on Shriram Finance earnings 

Centrum Broking said that while fundamentals remain sound, the sharp re-rating has already priced in near-term growth and margin tailwinds, warranting a more cautious stance at current levels.

 

With limited upside, the brokerage downgraded the stock to 'Neutral' from 'Buy' and set a target price of ₹1,024, preferring to wait for a more attractive entry point. It added that the quarter highlighted the resilience of Shriram Finance’s retail-focused operating model and continued balance-sheet stability.  ALSO READ | SBI up 6% in Jan, pips ICICI Bank in market cap ranking after 6 years 

JM Financial said Shriram Finance's well-diversified and largely secured lending portfolio continues to support steady growth and strong profitability. The brokerage added that the recent strategic equity infusion by MUFG has further strengthened the company’s capital position, improved balance-sheet stability and governance, and provided long-term growth capital.

 

Analysts at Motilal Oswal said moderation in credit costs and disciplined balance-sheet management position the company well for sustained earnings growth. The brokerage added that a diversified assets under management mix, improved access to lower-cost funding following the credit rating upgrade, and the strategic partnership with MUFG further strengthen the franchise.

 

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