Shriram Finance reports a net profit of Rs3,014 crore, up 41 per cent as compared to Rs2,139 crore in the year-ago period; Shriram Finance falls 5% after Q4 results; brokerages see up to 19% upside

NATIONAL/ MUMBAI, GPN/ SACHIN MURDESHWAR 📞 8108510506: In the March 2026 quarter, Shriram Finance Limited reported a net profit of Rs3,014 crore, up 41 per cent as compared to Rs2,139 crore in the year-ago period. The company posted a 9 per cent increase in revenue at Rs12,509 crore in Q4FY26 against Rs11,454 crore in Q4FY25.

Shriram Finance’s loans for commercial vehicles grew 19.5 per cent, while lending for passenger vehicles increased 19.05 per cent. The two segments account for around two-thirds of its Rs3.2 trillion assets under management (AUM), which jumped around 15 per cent.

Its net interest income (NII) increased 15.58 per cent to Rs6,994 crore. Gross non-performing assets (NPA) grew marginally to 4.58 per cent from 4.54 per cent on a quarter-on-quarter basis, while net NPA stood at 2.33 per cent, up from 2.38 per cent in the last quarter.Additionally, the company announced a final dividend of Rs6 per share for FY26, and the record date for the dividend will be July 3, 2026.

Analysts at Motilal Oswal Financial Services said Shriram Housing Finance delivered a steady operating performance, supported by healthy demand across key lending segments and a strong capital position after the MUFG equity infusion, which provides significant headroom for growth.The brokerage also noted that disciplined cost control and stable credit metrics have supported profitability and efficiency. While the near-term outlook remains positive, it said the evolving macro environment needs close tracking, with the April–June 2026 quarter expected to provide clearer signals on credit trends and demand.

MOFSL expects the company to post an AUM CAGR of around 17 per cent and PAT CAGR of about 26 per cent over FY26–28, with RoA/RoE of roughly 3.8 per cent/13.1 per cent by FY28. It has maintained a ‘Buy’ rating with a target price of Rs1,200, based on 2.2x FY28E book value.On a similar note, Antique Stock Broking said Shriram Housing Finance is expected to deliver a steady improvement in profitability over the coming years, with return on assets (RoA) projected to expand from around 3.3 per cent in FY26 to about 3.8 per cent by FY28E. This improvement will be driven by multiple factors, including an estimated 18 per cent AUM growth over FY26-FY28E, supported by strong momentum in gold loans and new vehicle financing. It also expects margins to improve, aided by a potential AAA rating upgrade, while credit costs are likely to remain contained at below 2 per cent, further supporting earnings growth and operational efficiency.Antique highlighted that the company continues to report a stable operating performance, backed by healthy demand across key lending segments and a strong capital base following the MUFG equity infusion, which provides significant room for growth. It also pointed to disciplined cost management and stable credit metrics as key factors supporting profitability and efficiency.

While the outlook remains positive, the brokerage cautioned that the evolving macroeconomic environment warrants close monitoring, with the April-June 2026 quarter expected to provide clearer visibility on credit trends and underlying demand conditions.Antique maintained a ‘Buy’ rating on SHFL, valuing the stock at 2.2x FY28E price-to-book value, leading to a 12-month target price of Rs1,185.Shares of non-banking finance company (NBFC) Shriram Finance slipped nearly 5 per cent to hit a low of Rs963.75 on the National Stock Exchange (NSE) despite the company reporting strong numbers in the March 2026 quarter (Q4FY26).

Around 11:50 AM, Shriram Finance stock was trading 3.4 per cent lower at Rs976.90, compared to the previous session’s close of Rs1,011.30 on the NSE. In comparison, the NSE Nifty50 was quoting at 24,015.30 levels, up by 117.35 points or 0.49 per cent. The market capitalisation of the company stood at Rs2.29 trillion. The stock price has declined around 13 per cent from its 52-week high of Rs1,108 touched on February 28, 2026.