Shriram Finance reported a 59% year-on-year rise in consolidated net profit for the September quarter. The Q2 results reflected higher income and lower borrowing costs. The company also announced an interim dividend of Rs 6.50 per share for the financial year 2026-27.
Shriram Finance Q2 Results: Profit and Income Rise
Shriram Finance reported a consolidated net profit of Rs 3,683.81 crore for the quarter ended September 30, compared with Rs 2,314.16 crore in the same quarter last year. Profit also rose 6.7% from Rs 3,452.77 crore in the June quarter.
For the first half of the financial year, consolidated net profit stood at Rs 7,136.58 crore, up from Rs 4,473.55 crore a year earlier.
Total income increased 15.8% year-on-year to Rs 13,801.84 crore. Interest income, the company's largest income component, grew 15.9% to Rs 13,385.84 crore. Basic earnings per share stood at Rs 15.66, compared with Rs 12.30 in the year-ago quarter.
Key highlights:
- Consolidated net profit rose 59% year-on-year to Rs 3,683.81 crore.
- Total income increased 15.8% to Rs 13,801.84 crore.
- The board declared an interim dividend of Rs 6.50 per share.
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Finance costs fell 10.1% to Rs 4,964.90 crore during the quarter. This supported an increase in profit before tax to Rs 4,932.34 crore from Rs 3,112.96 crore a year earlier. The net profit margin improved to 26.69% from 19.41%.
However, impairment on financial instruments rose 40.8% to Rs 1,877.40 crore. For the first half, the impairment charge increased 27.6% to Rs 3,340.66 crore.
The company's consolidated loan book reached Rs 3,07,833.55 crore at the end of September, compared with Rs 2,82,452.44 crore at the end of March. This represented a 9% increase in six months. Total assets grew 10.4% over the same period to Rs 3,54,762.11 crore.
Shriram Finance Dividend and Share Price
Shriram Finance declared an interim dividend of Rs 6.50 per share, equivalent to 325% of the face value of Rs 2 per share. Shareholders on the company's register as of October 29 will be eligible for the dividend. Payment is scheduled before November 20.
The board also approved a borrowing plan through debt securities for the period from November 1, 2026, to January 31, 2027. It cleared a private placement of debentures and approved a postal ballot seeking shareholder approval to renew the issuance limit for such securities up to Rs 35,000 crore.
Despite the strong Q2 results, Shriram Finance shares fell 3.67% at market close on October 23. The stock declined 13.9% over the past month but gained 22.1% over the past year. The quarter's performance highlighted stronger earnings and lower finance costs, while rising impairment charges remained an area to watch.
