SHRIRAMFIN's Q2 FY27 numbers came in strong, with revenue of Rs. 13,801.84 Cr (+15.77% YoY) and PAT growth of +59.19% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 23, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 13,801.84 Cr (+15.77% YoY) |
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| PAT (Q2) | Rs. 3,683.81 Cr (+59.19% YoY) |
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| EPS (Q2) | Rs. 15.66 (+27.32% YoY) |
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| Market cap | Rs. 203,542.01 Cr |
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| CMP | Rs. 865.00 |
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Quarter Snapshot
Shriram Finance delivered 59% PAT growth on 15.8% revenue growth, with PPOP up 53% YoY driven by a 10% YoY fall in finance costs following the fully-utilised Rs.39,617.98 Cr MUFG infusion that lifted CRAR to 33.24% and cut debt-equity to 2.12x. AUM growth of 16.96% met the >15% marker and keeps the 18% FY27 target arithmetically on track, though impairment rose 40.81% YoY and gross Stage-3 assets (+19.44% YoY) are drifting ahead of AUM growth. The guided securitization/DA resumption did not occur in Q2, and the 18% AUM hold/cut decision is the stated call agenda.
Key Investment Insights
Key Positives
- Consolidated PAT grew 59.19% YoY to Rs.3,683.81 Cr; standalone PAT +59.37% YoY to Rs.3,677.03 Cr
- NII (company definition) grew 38.20% YoY to Rs.8,661.04 Cr; PPOP grew 53.16% YoY to Rs.6,809.74 Cr
- Finance costs fell 10.13% YoY and 4.60% QoQ while the loan book grew ~17%; September 2026 NCD priced at 7.80% coupon
- AUM grew 16.96% YoY to Rs.3,29,021.72 Cr, meeting management's >15% marker; H1 added 8.85% vs the 8.41% H2 addition needed for the 18% FY27 target
- MUFG Rs.39,617.98 Cr preferential issue fully utilised; CRAR 33.24% (vs 20.68% YoY), debt-equity 2.12x (vs 3.88x), total borrowings down 5.75% over H1 while loans grew 8.99%
- Net NPA improved to 2.31% (from 2.49% YoY); provision coverage rose 478 bps YoY to 51.48%; LCR at 303.84%
- Interim dividend of Rs.6.50/share (325%) declared; NCD resource-mobilisation plan (Nov 1, 2026–Jan 31, 2027) and Rs.35,000 Cr private-placement postal ballot approved
- Headcount at 82,292, meeting the guided return to 80,000
Risk Factors
- Impairment on financial instruments rose 40.81% YoY and 28.30% QoQ to Rs.1,877.40 Cr; annualized H1 credit-cost proxy of 2.26% is above the ~2% guide
- Gross Stage-3 assets grew 19.44% YoY, outpacing AUM growth of 16.96%; GS3 ratio flat at 4.65% vs 4.57% a year ago
- Securitization/DA resumption guided for 'towards the end of the quarter' did not materialize — no assignment transfers in Q2
- Cost-to-income at 28.29% in Q2 (27.54% YoY), above the guided 26-27% FY27 band on H1 basis (27.52%)
- GST Section 74 orders of Rs.11.18 Cr (Rs.5.59 Cr tax + equal penalty) received; tax-consultant opinion pending
- Operating cash flow negative at Rs.(23,029.65) Cr for H1 (CFO/PAT −3.23x) on a Rs.28,483.88 Cr loan build