Shriram Finance Q4 Profit Up 10%, AUM Growth Target 15%

Mumbai, Apr 25 (PTI) Leading non-bank lender Shriram Finance on Friday reported a 9.95 per cent rise in its January-March quarter net profit to Rs 2,139 crore compared to the year-ago period.

The company had reported a net profit of Rs 1,946 crore in the year-ago period. For FY25, its net profit jumped by over 35 per cent to Rs 9,761 crore from Rs 7,190 crore.

The core net interest income increased 13.40 per cent to Rs 6,051 crore in the reporting quarter on the back of an over 17 per cent growth in assets under management and a compression in the net interest margin at 8.25 per cent from 9.05 per cent in the year-ago period.

Its executive vice chairman Umesh Revankar attributed the NIM compression to the excess liquidity that the company was carrying and also an increase in the credit costs.

He said the company is confident of getting the NIM at 8.5 per cent in FY26, the same level as seen for the previous fiscal.

It is aiming for an AUM growth of 15 per cent, he said, adding that this will be broadbased one across various lending lines.


The company is observing some softness in the urban areas when it comes to credit pick up as government spends have not happened in the last year, Revankar said, adding that the credit quality is good.

Factors such as good winter crops and the prospect of a good monsoon make the company upbeat about the rural areas, he said.

The company grew its personal loan book by 11 per cent in Q4 on a sequential basis, largely because of the comfort that it has derived from the credit performance in this area, he said.

The gold loan book contracted due to elevated redemptions but the ongoing rally in the prices of the commodity makes the company confident of growth going ahead, he said.

The overall credit costs came at 2.07 per cent for the March quarter, and the company will improve the same to under 2 per cent in FY26, Revankar said.

Shriram Finance shares closed 5.93 per cent down at Rs 655.65 apiece on BSE as against a 0.74 per cent correction on the benchmark Sensex.