Shriram Finance Q3 Net Profit Falls 22% to ₹2,530 Crore: Full Breakdown

For the quarter ending December 2025, Shriram Finance, a prominent non-banking finance company, saw its consolidated net profit decline 22% to ₹2,530 crore. In comparison, the same period last year saw a profit of ₹3,249 crore, while the previous quarter recorded ₹2,314 crore.

The dip reflects changes in one-time gains from past periods and a focus on core lending operations.

Market Snapshot

• BSE Closing Price (Jan 23, 2026): ₹1,003.45, down 0.29%
• Benchmark Index: Sensex fell 0.94%

Despite the lower net profit, Shriram Finance’s stock outperformed the benchmark slightly, indicating sustained market confidence in the company’s operations.

Financial Performance in Q3

Consolidated Figures:

• Net Profit: ₹2,530 crore (down 22% YoY)
• Previous Year Q3: ₹3,249 crore
• Previous Quarter: ₹2,314 crore

Standalone Figures:

• Net Profit: ₹2,522 crore (down from ₹3,570 crore YoY)
• Reason for Drop: Previous year benefited from the sale of the housing finance division

Core Operational Highlights:

• Net Interest Income (NII): ₹6,765 crore, up 16%
• Assets Under Management (AUM): Growth of 14.63%
• Net Interest Margin (NIM): Expanded to 8.58%, up 0.10%
• Other Income: ₹1,153 crore, up nearly 18%

The numbers highlight Shriram Finance’s strong lending operations, with steady growth in NII and other income, showing resilience in its core business segments.

Strategic Focus Areas

Shriram Finance is targeting growth in key segments to strengthen its portfolio:

• Used Commercial Vehicles (CVs):
  • Current share of new CVs in AUM: under 5%
  • Target for next 2 years: 10–15% of total CV AUM
• Gold Loans:
  • Current contribution to AUM: 2%
  • Goal: Increase to 5% in 18 months
• Funding Plans:
  • Regulatory approvals underway for ₹39,000 crore infusion from Japan’s MUFG
• Acquisition Strategy:
  • No acquisitions are planned at this stage

The company aims to expand lending in high-potential segments while keeping borrowing costs manageable and maintaining healthy margins.

Key Takeaways from Q3

1. Profit Decline: Net profit dropped 22% YoY due to lower one-off gains in comparison to last year.
2. Operational Strength: Core NII and other income continued to grow.
3. Strategic Focus: Expansion in used CVs and gold loans is underway.
4. Market Response: Stock closed slightly lower but outperformed the benchmark.

Shriram Finance’s Q3 performance shows a company navigating a transitional phase. While profits are down, growth in NII, AUM, and focused lending segments points to sustainable operational strength.

Source: The Hindu