Shriram Finance Ltd(SHRIRAMFIN)

NSE: SHRIRAMFINBSE: 511218

₹ 823.5-5.02%refreshed 26 Oct, 03:30 pm ISTMarket cap: ₹ 1.94 L crWebsite: www.stfc.inUpdated: 27 Oct 2026

About

Shriram Finance is a retail finance NBFC that leads organised financing of pre-owned commercial vehicles and two-wheelers, and also lends against passenger vehicles, farm equipment, construction equipment and gold, and to MSMEs. Total AUM was INR3,13,798 cr in Q1 FY27, and FY26 revenue was Rs 48,132.95 cr. In April 2026 MUFG Bank bought a 20% stake for INR39,618 cr, after which all four domestic rating agencies rated it AAA and Fitch and S&P rated it BBB-, which is investment grade.^[1][2][3]

Loan book mix

FY25 AUM by product (Rs cr): commercial vehicles 118,560.50; passenger vehicles 54,104.49; MSME 37,413.55; construction equipment 17,878.16; two-wheelers 15,580.56; personal loans 9,609.71; farm equipment 5,206.60; gold 4,836.70.^[1]
Commercial vehicle AUM grew 19.49% YoY to INR1,41,666.6 cr as of FY26 end and remains the largest segment.^[4]
Gold loan AUM grew 45.78% YoY in Q1 FY27 to 2.39% of the total book; 2,200 branches are activated for gold lending.^[2]
Farm equipment AUM grew 37.49% YoY to INR6,566 cr (2.25% of AUM) in Q3 FY26; management's target is about 5% of AUM over time.^[5]
Construction equipment AUM fell 25.17% YoY and 7.04% QoQ in Q1 FY27.^[2]
New vehicles' share of disbursements rose to about 16% in Q1 FY27 from about 10% earlier.^[2]
The group reports a single segment: financing.^[1]

Key operating metrics

Total AUM was INR3,13,798 cr in Q1 FY27, up 15.26% YoY and 3.81% QoQ.^[2]
Disbursements were INR49,974 cr in Q1 FY27, up 19.51% YoY.^[2]
NIM was 9.04% in Q1 FY27, up from 8.11% in Q1 FY26.^[2]
Cost of liabilities was 8.56% in Q1 FY27; the cost of new borrowing was 7.77%.^[2]
Gross Stage 3 was 4.64% in Q1 FY27 (+11 bps YoY), Net Stage 3 was 2.33% (-24 bps YoY), and credit cost was 1.66% of total assets.^[2]
Cost-to-income ratio was 25.48% in Q1 FY27, 381 bps better YoY.^[2]
FY26 credit cost on total assets was 1.68%, against 2.07% in Q4 FY25; NPA provision coverage was 50.34%, up from 43.28%.^[4]

Distribution and customers

The company had 3,220 branches and other offices across India as of March 31, 2025, including 627 rural centres, and a business team of 61,673.^[1]
There were 3,225 branches as of Q2 FY26; about 150 more are planned in FY27.^[6]
The customer base was over 95.56 lakh as of FY25.^[1]
The MSME product has been rolled out across all regions since the merger, extending a mainly southern base to the whole country.^[6]
Its EV financing partners include the makers Montra, Bajaj, TVS, Hero, Ola, Ather, Ape, Mahindra and Tata (FY25).^[1]

Capital and funding

Capital adequacy was 34.17% in Q1 FY27, against 20.66% as of March 31, 2025.^[2][1]
Debt-to-equity fell to 2.14x in Q1 FY27 from 3.82x in March 2026 after the MUFG equity came in.^[2]
Liquidity coverage was 262.54% in Q1 FY27. Of the MUFG proceeds, INR37,451 cr was used: INR15,000 cr to repay borrowings, INR17,833 cr for lending and INR4,618 cr for general purposes.^[2]
In FY25 the borrowing limit was proposed to rise to Rs 2,95,000 cr from Rs 2,35,000 cr, and the securitisation limit to Rs 75,000 cr.^[1]
New borrowing through NCDs, subordinated debt, ECBs and securitisation is planned for Aug-Oct 2026.^[2]

Credit ratings

After the MUFG deal, ICRA, CRISIL and India Ratings upgraded the company to AAA/Stable, and Fitch upgraded it to BBB-/Stable on April 14, 2026.^[4]
CARE upgraded the company to AAA/Stable on December 31, 2025, and S&P to BBB-/Stable/A-3 on January 15, 2026.^[5]

Expansion and new initiatives

Gold loans are targeted to grow from about 2.5% to about 5% of AUM over 3 years.^[2]
New vehicles are targeted at 20-25% of disbursements over 2-3 years and 30%+ of AUM in the medium term.^[2]
MSME lending is targeted to grow from about 15% to about 20% of the book as the business expands in North and Central India.^[2]
Personal loans are to be offered to gold loan and MSME customers as well as two-wheeler customers.^[2]
The Shriram Green Finance vertical, launched in FY25, finances EVs, charging infrastructure and renewables; its target is an AUM of Rs 5,000 crore in 3-4 years.^[1]
Its subsidiary Shriram Overseas Investments received RBI in-principle approval on April 15, 2026 to start a primary dealer business in government securities.^[2]
In FY25 the company proposed to offer prepaid payment instruments, payment gateway and UPI services, subject to RBI approval.^[1]

Recent developments

On April 8, 2026, MUFG Bank was allotted a 20% stake for INR39,617.98 cr at INR840.93 per share.^[4]
Headcount fell to 76,241 at FY26 end from about 79,000; the plan is to rebuild to about 80,000.^[4]
The housing finance subsidiary was sold to Warburg Pincus for Rs 4,630.00 crores, with a one-time gain of Rs 1,489 crores (FY25).^[1]

Market Cap

₹1,93,773 Cr

High / Low

₹1,154 / 696

Stock P/E

15.3

Price / Book

2.5

Book Value

₹350

EPS

₹53.3

No. of Shares

188.16 Cr

ROE

16.4%

Debt / Equity

3.80

Sales

₹48,133 Cr

Net Profit

₹10,024 Cr

Promoter holding

20.3%

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