Synopsis: NBFC stock jumped 5.7 percent from its day low after reporting a nearly 60 percent rise in Q1 FY27 profit, while AUM increased 15.26 percent to Rs 3.14 lakh crore.
The share of this company, which is a leading lender in pre-owned commercial vehicles, trucks, two-wheelers, tractors, gold loans, and SME financing, gained investor traction after posting strong Q1 numbers
With a market capitalization of Rs 2,45,130 crore, Shriram Finance Ltd’s share on Friday made a day high of Rs 1,050 per share, up 5.7 percent from today’s day low of Rs 992.75 per share. The share of the company gave a return of 58 percent over the last year.
Result Overview
QoQ View
On a QoQ basis, Net Interest Income grew by 15.18 percent to Rs 8,055.70 crore in Q1 FY27 from Rs 6,994.08 crore in Q4 FY26, and Operating Profit grew by 14.28 percent to Rs 6,085.37 crore in Q1 FY27 from Rs 5,325.04 crore in Q4 FY26. Accompanied by a Profit After Tax (PAT) growth of 14.30 percent to Rs 3,444.56 crore in Q1 FY27 from Rs 3,013.57 crore in Q4 FY26.
YoY View
The Net Interest Income grew by 33.67 percent YoY to Rs 8,055.70 crore in Q1 FY27 from Rs 6,026.43 crore in Q1 FY26, and Operating Profit grew by 45.15 percent YoY to Rs 6,085.37 crore in Q1 FY27 from Rs 4,192.42 crore in Q1 FY26. Accompanied by a Profit After Tax (PAT) growth of 59.79 percent YoY to Rs 3,444.56 crore in Q1 FY27 from Rs 2,155.73 crore in Q1 FY26.
Segment-wise AUM Performance
Shriram Finance reported a total Assets Under Management (AUM) of Rs 3,13,783.9 crore in Q1 FY27, registering a growth of 15.26 percent compared to Rs 2,72,249 crore in Q1 FY26. On a quarter-on-quarter basis, AUM increased 3.81 percent from Rs 3,02,237.5 crore in Q4 FY26, showing steady growth across major segments.
Geographically, Metro AUM rose to Rs 36,650 crore from Rs 33,200 crore, Urban AUM increased to Rs 90,740 crore from Rs 70,270 crore, and Semi-Urban and Rural AUM grew to Rs 1,86,410 crore from Rs 1,68,780 crore, highlighting broad-based growth across markets.
Commercial Vehicles remained the largest contributor to the company’s AUM, accounting for 46.86 percent of the total portfolio. The segment’s AUM stood at Rs 1,47,034.2 crore in Q1 FY27, growing 19.41 percent year-on-year and 3.79 percent sequentially. Passenger Vehicles also showed strong growth, with AUM rising 21.22 percent YoY to Rs 68,650.2 crore.
The MSME segment continued to expand, with AUM reaching Rs 41,962.4 crore in Q1 FY27, up 8.08 percent year-on-year and 1.74 percent quarter-on-quarter. Two-Wheeler loans recorded AUM growth of 12.35 percent YoY to Rs 17,813.8 crore, while Farm Equipment loans increased 20.65 percent YoY to Rs 7,030.5 crore.
Other segments also reported growth during the quarter. Gold loan AUM increased 45.78 percent YoY to Rs 7,513.7 crore, while Personal Loan AUM grew 11.04 percent YoY to Rs 11,420.7 crore. However, Construction Equipment AUM declined 25.17 percent YoY and 7.04 percent QoQ to Rs 12,372.6 crore in Q1 FY27.
Conclusion
Shriram Finance’s 59.79 percent YoY jump in profit was mainly driven by higher net interest income, strong operating profit growth, and steady expansion in its loan book. Growth across commercial vehicles, passenger vehicles, MSME, and gold loans helped the company earn more interest income during the quarter.
Apart from strong lending growth, the company’s AUM increased 15.26 percent YoY to Rs 3,13,784 crore, with broad-based growth across metro, urban, and semi-urban/rural markets. This increase in the loan book, along with better operating performance, was the key reason behind the sharp rise in Q1 FY27 earnings.
About the Company
Shriram Finance Ltd is a part of the SHRIRAM Group conglomerate, which has a significant presence in the financing business. The company is engaged in the business of commercial vehicle financing, mainly focusing on trucks, from pre-owned to new ones. It serves millions of customers, primarily focusing on the common man, small road transport operators, and small business owners.
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