Vehicle loans major Shriram Finance on Friday reported 21 per cent year-on-year (y-o-y) rise in net profit for the quarter ended December at ₹2,522 crore, excluding one-time gain of ₹1,489 crore from the sale of the non-banking lender’s stake in subsidiary Shriram Housing Finance in the same period of the previous year. Including the gain in Q3FY25, net profit decreased 29 per cent in Q3FY26.
Net interest income (NII) of Shriram Finance rose 16 per cent y-o-y to ₹6,764 crore. Net interest margin (NIM), meanwhile, rose to 8.58 per cent from 8.19 per cent last quarter, as funding cost reduced post the NBFC’s deal with Japanese lender MUFG Bank. A host of credit rating agencies have changed outlook on Shriram Finance to positive from stable, and one rating agency has upgraded its credit rating after the NBFC signed a pact with MUFG Bank, wherein the latter will invest nearly ₹40,000 crore in the company for a 20 per cent stake.
Assets under management (AUM) of Shriram Finance rose 15 per cent y-o-y to ₹2.91 lakh crore. Commercial vehicles formed 46 per cent of the NBFC’s AUM, while passenger vehicles had the second largest share of 22 per cent.
Gross stage-3 ratio fell 3 basis points (bps) on quarter to 4.54 per cent, while net stage-3 ratio fell 11 bps to 2.38 per cent. The NBFC’s officials are meeting to consider raising funds via debt for the period between February-April 2026.
Published on January 23, 2026
