Shriram Finance Q2 net profit rises 59% as lower interest costs lift margins
Shriram Finance's standalone net profit rose 59.4% to 3,677 crore in the September quarter, per Moody's. Net interest margin hit 9.52% from 8.19%.
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what happened
Shriram Finance, in which Japan's MUFG holds a significant stake, reported a 59.4% year-on-year rise in standalone net profit. The company earned 3,677 crore in the quarter ended September 2026, up from 2,307 crore a year earlier, according to Moody's.
Net interest income climbed 38% to 8,661 crore, driven by a 15.6% rise in interest income and a 9.9% fall in interest expenses. Net interest margin widened to 9.52% from 8.19%. Loan losses and provisions, however, jumped 41% to 1,877 crore.
Assets under management grew 17% year on year to 3.29 lakh crore at the end of September. CEO Parag Sharma told ET he expects the margin to stay around 9% over the next two quarters, while the long-term guidance is about 8.5%.
why it matters
Lower interest costs were the main engine of the profit jump, feeding directly into margins. For markets, this shows cheaper funding is helping Indian non-bank lenders, while the sharp rise in provisions keeps credit quality in focus for investors.
market impact
Indian NBFCs: lower funding costs support margins, while rising provisions weigh on profit growth
tags
instruments
sources
- Shriram Fin Q2 Net up 59% — Moody's, 24 October 2026 at 04:14 UTC
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