Shriram Finance Q3 FY26 Results: Net profit down 22% YoY; NII up 16% - AUM rises 15%

Shriram Finance Limited (SFL) on Friday said its Board of Directors has approved the unaudited financial results for the third quarter ended December 31, 2025.

On a year-on-year basis, Shriram Finance’s consolidated interest income rose 14.5 per cent to Rs 11,839 crore in the December quarter, while revenue from operations increased 13.8 per cent to Rs 12,171 crore and total income grew 13.9 per cent to Rs 12,197 crore. Total expenses rose 11.2 per cent to Rs 8,833 crore during the quarter.

Consolidated net profit declined 22.1 per cent year-on-year to Rs 2,530 crore, compared with Rs 3,247 crore in the same period last year.

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Profit after tax rose 21.21 per cent year-on-year on an adjusted basis, excluding exceptional gains, while profit declined 29.36 per cent compared with the year-ago period that included one-time gains.

Assets under management increased 14.63 per cent year-on-year to Rs 2,91,709 crore as on December 31, 2025.

On a standalone basis, net interest income (NII) for the quarter rose 16.17 per cent year-on-year to Rs 6,764 crore, from Rs 5,823 crore in the same period last year.

Profit after tax (PAT) on a standalone basis stood at Rs 2,522 crore. The company said PAT increased 21.21 per cent compared with Rs 2,080 crore in the corresponding quarter of the previous year, excluding a one-time exceptional gain related to the sale of stake in Shriram Housing Finance Limited. However, PAT declined 29.36 per cent compared with Rs 3,570 crore recorded in the same period last year, including the exceptional gain.

Earnings per share (basic) for the quarter stood at Rs 13.40. EPS increased 21.05 per cent compared with Rs 11.07 in the year-ago period, excluding exceptional gain, while declining 29.44 per cent compared with Rs 18.99 reported in the same period last year, including exceptional gain.

The company’s assets under management (AUM) as on December 31, 2025, stood at Rs 2,91,709 crore, registering a 14.63 per cent year-on-year increase from Rs 2,54,470 crore as on December 31, 2024. AUM also rose from Rs 2,81,309 crore as on September 30, 2025.

The Board of Directors had earlier approved, on December 19, 2025, a proposal to raise funds of Rs 39,618 crore through a preferential issue of 47.11 crore fully paid-up equity shares of face value Rs 2 each at an issue price of Rs 840.93 per share to MUFG Bank Ltd, a Japan-based entity. The proposed issue represents 20 per cent of the post-preferential equity share capital on a fully diluted basis.

The company said the requisite resolutions were approved by shareholders at an extraordinary general meeting held on January 14, 2026. The preferential issue is currently awaiting statutory and regulatory approvals. Upon completion, MUFG Bank Ltd will become a minority public shareholder of the company.

Shriram Finance said its overseas subsidiary, Shriram Overseas Investments Limited (SOIL), formerly known as Shriram Overseas Investments Private Limited, became a wholly-owned subsidiary on May 9, 2025.

SOIL holds an 81.63 per cent stake in Bharat Investments Pte. Limited, Singapore, which has an associate entity in Bahrain.