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  5. Shriram Finance shares fall over 6% following Q2 results; here is what analysts at JP Morgan, CITI, HSBC said

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Shriram Finance shares fall over 6% following Q2 results; here is what analysts at JP Morgan, CITI, HSBC said

Abha Raverkar
By Abha Raverkar

4 min read | Updated on October 26, 2026, 12:44 IST

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SUMMARY

Shriram Finance's board of directors also declared an interim dividend of ₹6.50 per equity share, with a face value of ₹2 each, at 325% for FY27.

Stock list

SHRIRAMFIN
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Shriram Finance Q2

Shriram Finance has a total market capitalisation of ₹1.93 lakh crore as of October 26, 2026, according to data on the NSE. | Image: Shutterstock

Shriram Finance share price: Shares of the non-banking financial company (NBFC) Shriram Finance declined as much as 6.34% to hit an intraday low of ₹810.20 apiece on the National Stock Exchange (NSE) on Monday, October 26, compared with Friday’s closing price of ₹865 per unit.
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The stock came under selling pressure as the NBFC’s assets quality disappointed investors, with analysts taking note of elevated credit costs. However, the company reported strong growth in its other key earnings metrics, including net interest income, asset under management, and profit, during the second quarter of the 2026-27 financial year (Q2 FY27).

Shriram Finance Q2 results

According to a regulatory filing, the company saw its standalone profit after tax (PAT) rise 59.37% year-on-year (YoY) to ₹3,677.03 crore during the quarter under review, as against ₹2,307.18 crore in the September quarter of the 2025-26 fiscal year (Q2 FY26).

The firm recorded a net interest income (NII) of ₹8,661.04 crore in Q2 FY27, reflecting a 38.20% YoY surge from ₹6,266.84 crore in the same period of the preceding fiscal year.

Its total assets under management (AUM) grew 16.96% YoY to ₹3.29 lakh crore as on September 30, 2026, compared with ₹2.81 lakh crore as on September 30, 2025.

Shriram Finance's board of directors also declared an interim dividend of ₹6.50 per equity share, with a face value of ₹2 each, at 325% for FY27.

They fixed Thursday, October 29, 2026, as the record date, and Friday, November 20, 2026, as the payment date for the same.

Asset quality

The company saw its gross non-performing assets (GNPA) rise by 1 basis point (bps) quarter-on-quarter (QoQ) to 4.65% in the July-September quarter of FY27, from 4.64% in the quarter-ago period.

However, its net non-performing assets (NNPA) improved marginally, declining by 2 bps QoQ to 2.31% for the reporting quarter, in comparison to 4.64% in the first quarter of FY27 (Q1 FY27).

Also read: Q2 Results, Oct 26: Paytm, Tata Consumer, Ather Energy, Mankind Pharma, REC, Bank of Maharashtra, Sona BLW Precision, others to post earnings

What analysts said

Analysts at JP Morgan said that the NBFC reported mixed Q2 results. While Shriram Finance’s operating metrics, such as NII and pre-provisional operating profit (PPOP), beat JP Morgan’s estimates, its asset quality trends disappointed, with provisions and credit costs rising sequentially.

The management’s post-earnings commentary confirmed that elevated credit costs could continue for at least another quarter or two before normalising, indicating that the company is likely to miss its 2% credit cost guidance for FY27. The company highlighted it to be a temporary issue, attributing it to agri-stress due to deficient rains (El Niño) in certain geographies, worsened by seasonality, and affirming that the deterioration was not broad-based and limited to select products.

CITI analyst noted that Shriram Finance’s Q2 was in line with expectations, as the company reported sharper-than-expected net interest margin (NIM) expansion at 9.52% in Q2 FY27 versus 9.04% in the quarter-ago period, which was driven by accretive deployment of excess liquidity and was counterbalanced by elevated credit costs. It added that the AUM growth was robust, anchored by a rebound in gold, passenger vehicle, commercial vehicle, and micro, small and medium enterprises (MSME) loans.

The management conservatively guided AUM growth for FY27 at 15-17%, despite rising 9% year-to-date (YTD). They added that the equity buffer should keep NIMs elevated near-term, before normalising.

In an analyst note, HSBC stated that the emerging risks will likely weigh on stock performance, with Q2 profit being impacted by higher credit costs amid rising stage two and stage 3 assets across several segments. They added that improving NIM and operational efficiencies should be partly offset by high credit costs. They increased the estimated earnings per share (EPS) to 2.8-6.5% in FY27-29. It added that the growth target was curtailed as asset quality stress built up.

At around 11:41 AM, the stock was trading 5.01% lower at ₹821.65 per equity share.

Shriram Finance has a total market capitalisation of ₹1.93 lakh crore as of October 26, 2026, according to data on the NSE.

Disclaimer: This article is written purely for informational purposes and should not be considered investment advice from Upstox. Securities mentioned are illustrative and not recommendations. Please consult a financial advisor before making any investment decisions.

About The Author

Abha Raverkar
Abha Raverkar is a post-graduate in economics from Christ University, Bengaluru. She has a strong interest in the markets and loves to unravel the nitty-gritties of the latest happenings in the world of markets, business, and the economy.

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