Shriram Finance Ltd.Record 60% PAT Growth Amid Monsoon Concerns

Shriram Finance delivered exceptional first quarter results with profit after tax surging 59.79% year-on-year to ₹3,444.56 crores, driven by robust net interest margin expansion of 93 basis points to 9.04%.

Net interest income grew 33.67% to ₹8,055.70 crores while disbursements increased 19.51% to ₹49,974.49 crores across diverse segments. Management maintains 18% full-year growth guidance but acknowledges significant uncertainty from a 24% monsoon deficit that could impact rural demand and agricultural output. The company is executing a strategic transformation toward lower-risk products, targeting new vehicle financing to reach 30% of portfolio from current 16-17% mix, expanding MSME presence from 15% to 20%, and doubling gold loan book to 5% within three years.

Capital position remains fortress-strong with 34.1% CAR and 262.54% LCR following ₹39,600 crore capital raise. Near-term NIM of 9%+ is expected for two quarters before normalizing to 8.5% medium-term as product mix evolves. Asset quality remains stable with GNPA at 4.64% and credit costs maintained at approximately 2% guidance.