Shriram Finance shares soar nearly 4% as Q1 PAT rises 9% YoY to ₹2,156 crore; asset quality improves

Shares of Shriram Finance surged 3.73% to an intra-day high of ₹638.85 apiece on the National Stock Exchange (NSE) on Monday, July 28, following the release of its first quarter earnings.

On Friday, the NBFC reported an 8.84% year-on-year (YoY) rise in standalone profit after tax (PAT) to ₹2,155.73 crore in the June quarter of FY26, compared to ₹1,980.59 crore in the corresponding quarter of the previous fiscal year.

Its net interest income (NII) increased by 12.55% YoY to ₹6,026.43 crore during the quarter under review, as against ₹5,354.47 crore in the first quarter of FY25.

Its revenue from operations stood at ₹11,173.22 crore in Q1FY26, jumping 19.34% YoY from ₹9,362.79 crore in the year ago period.

Shriram Finance’s overall asset quality improved, as its gross non performing assets (GNPA) contracted to 4.53%, compared to 5.39% in Q1FY25. Similarly, its net NPA (NNPA) also decreased to 2.57% from 2.71% YoY.

The company clocked a total assets under management (AUM) of ₹2.72 lakh crore as of June 30, 2025, soaring 16.62% YoY from ₹2.33 lakh crore as of the same period in the last fiscal year.

Its basic earning per share increased by 8.73% YoY to ₹11.46, as against ₹10.54 recorded in the Q1FY25, the firm said in a regulatory filing.

Shriram Finance acquires 100% stake in Shriram Overseas Investment

During the June FY26 quarter, Shriram Finance acquired 100% stake in Shriram Overseas Investment Private Ltd for a total consideration of ₹501.2 million.

On April 26, the firm’s board of directors had approved the acquisition, subsequent to RBI’s approval earlier in April.

Post the acquisition, Shriram Overseas Investment Ltd became a wholly-owned subsidiary of the company with effect from May 09, 2025.

Board to consider fundraiser via NCDs

In a separate filing on Friday, Shriram Finance’s board of directors also considered a fundraiser through the issuance of redeemable non-convertible debt securities, including bonds in onshore or offshore markets on a private placement basis.

The company has yet to disclose the financial specifications of the fundraiser.

The fundraiser will be subject to market conditions and in this regard, the meetings of the concerned committee, such as the Banking and Finance Committee and Allotment Committee.

“NCDs will be held to consider and approve the issue and allotment of redeemable non-convertible debt securities and bonds during the period from August 1 to October 31, 2025, as per their respective terms of reference, subject to such terms and conditions, including the issue price of debt securities/ bonds, as the said committees may deem fit,” Shriram Finance said.

The stock of Shriram Finance was trading 3.11% higher at ₹635 per equity share at around 12:42 pm.

The NBFC has a total market capitalisation of ₹1.19 lakh crore, as of July 28, 2025, as per data on the NSE.