Shriram Finance Ltd (SHRIRAMFIN) Q2FY27 Concall Summary - Sep-2026 Qtr
Key Takeaways
- Management projects a temporary 30-40 bps rise in credit costs for 1-2 quarters due to monsoon-related stress in specific geographies, before normalizing to its 2% target.
- The current elevated 9.52% NIM is expected to moderate to 9% in the medium-term as low-cost capital is absorbed and the portfolio mix evolves.
- Full-year AUM growth guidance is now a more cautious 15-17%, revised down from 18%, reflecting management's conservative stance amid rural economic uncertainty.
Performance Overview
- Shriram Finance posted a strong quarter with AUM reaching 3.29 lakh crores, up 16.96% YoY, and disbursements growing 25.71% YoY to 54,079 crores.
- Profitability improved significantly, with PAT rising 59.37% YoY to 3,677.03 crores, driven by a 38.2% YoY increase in NII and an expanded NIM of 9.52%.
- Asset quality remained largely stable with Gross Stage 3 at 4.65% and Net Stage 3 at 2.31%, despite seasonal stress in certain drought-affected geographies.
- Management revised its full-year AUM growth guidance down slightly to 15-17% from 18%, citing caution due to weak monsoons and geopolitical uncertainty.
- The company declared an interim dividend of 6.5 per share and maintained a strong capital adequacy ratio of 33.24%.
Financial Metrics
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Operating Performance / Business Segments
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Key Discussions & Insights
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Outlook and Guidance
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Challenges / Concerns
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Industry / Competitive Landscape
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Overall Summary
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Tone & Disclosure
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