Shriram Finance sees growth amidst economic optimism, strong Q2 results

Shriram Finance Limited announced a solid performance for Q2 FY'26, with disbursements reaching INR 43,019.17 crore, a 10.24% year-on-year increase. Assets Under Management (AUM) grew by 15.74% year-on-year to INR 2,81,309.46 crore. Net interest income for the quarter was INR 6,266.84 crore, up 11.77% year-on-year, with a net interest margin of 8.19%. Profit after tax increased by 11.39% to INR 2,307.18 crore.

The company's asset quality showed improvement, with gross stage 3 at 4.57% and net stage 3 at 2.49% for Q2 FY'26, down from 5.32% gross and 2.64% net in Q2 FY'25. Management noted a strong demand outlook, particularly in October, with expectations of a further 2% AUM growth in the second half of the year.

The board declared an interim dividend of INR 4.8 per share (240%), with November 7, 2025, as the record date. Despite some muted government infrastructure spending impacting construction equipment, the rural economy's strength and robust commercial vehicle sales contributed positively to the company's performance.