Shriram Finance Limited Earnings Summary — Q4 FY2026
Shriram Finance Post Record Quarterly Profit of ₹3,021 Cr Amidst Expanding Financing Margins
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 10 consecutive quarters.
- Revenue of ₹13,400 Cr is 16.2% higher year-on-year.
- Revenue has compounded at 16.6% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹3,453 Cr is 59.9% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 27.2% annualised across the period.
- Operating margin stands at 74.6% in Q1 FY2027.
- Operating margin expanded by 113 bps year-on-year.
- Over the last two years operating margin has expanded by 228 bps.
- PBT margin is 34.5%.
- Expense growth of 11.2% remained below revenue growth of 16.2%.
- Operating profit of ₹9,995 Cr is 17.9% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 82/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 13,400 | 12,513 | 12,171 | 11,912 | 11,536 | 11,454 | 10,698 | 10,090 | 9,605 | 9,484 |
| Expenses | Stable | 3,406 | 3,104 | 3,397 | 3,109 | 3,062 | 3,293 | 3,033 | 2,836 | 2,661 | 2,712 |
| Operating Profit | Improving | 9,995 | 9,409 | 8,774 | 8,803 | 8,474 | 8,161 | 7,665 | 7,254 | 6,944 | 6,771 |
| Operating Margin | Stable | 74.6% | 75.2% | 72.1% | 73.9% | 73.5% | 71.3% | 71.7% | 71.9% | 72.3% | 71.4% |
| Other Income | Volatile | 18 | 19 | 26 | 9 | 6 | 6 | 1,574 | 86 | 54 | 87 |
| Interest | Improving | 5,204 | 5,336 | 5,259 | 5,525 | 5,401 | 5,224 | 4,751 | 4,350 | 4,129 | 3,988 |
| Depreciation | Stable | 183 | 175 | 177 | 175 | 173 | 171 | 162 | 159 | 153 | 153 |
| Profit Before Tax | Improving | 4,626 | 3,917 | 3,363 | 3,113 | 2,906 | 2,772 | 4,326 | 2,830 | 2,715 | 2,717 |
| Tax | Improving | 1,178 | 902 | 840 | 803 | 751 | 633 | 1,081 | 680 | 686 | 698 |
| Net Profit | Improving | 3,453 | 3,021 | 2,530 | 2,314 | 2,159 | 2,144 | 3,247 | 2,140 | 2,023 | 2,009 |
| Net Margin | Improving | 25.8% | 24.1% | 20.8% | 19.4% | 18.7% | 18.7% | 30.4% | 21.2% | 21.1% | 21.2% |
Key Takeaways
- Net profit reached a record high of ₹3,021 crore for Q4 FY2026, a significant increase from ₹2,144 crore in the year-ago quarter.
- Financing Margin improved sharply to 33% in the latest quarter, compared to 26% in Q4 FY2025 and 29% in the preceding quarter.
- The company demonstrated strong cost control as expenses fell to ₹3,104 crore from ₹3,397 crore in the previous quarter despite revenue growth.
- Interest expenses rose moderately to ₹5,336 crore, showing stabilization in the cost of funds relative to the prior quarter.
- Balance sheet strength improved with reserves growing to ₹65,542 crore by fiscal year-end March 2026.
- Earnings per share (EPS) surged to ₹16.06 for the quarter, up from ₹11.40 in the same period last year.
Management Guidance
Management is prioritizing 'cross-selling' to its existing base of 8 million+ customers following the successful integration of its merged finance entities.
Sentiment Shift
Improving
The sharp uptick in financing margins to 33% and the record net profit suggest that merger synergies and operational leverage are now fully reflecting in the bottom line.
Outlook
The outlook remains robust as Shriram Finance leverages its position as India’s largest retail asset NBFC with a specialized focus on the semi-urban and rural 'Bharat' market. Continuous expansion of the high-margin multi-product retail lending book (MSME, Gold, and Personal loans) is expected to sustain an ROE above 15%.
From the Annual Report (Key Quotes)
“SFL demonstrates high-scale efficiencies and a successful transition from a mono-line truck financier to a multi-product retail lending powerhouse.”
“The focus has clearly shifted toward 'cross-selling' to the existing 8 million+ customer base.”
“Management has demonstrated deep expertise in assessing the creditworthiness of the 'unbanked' semi-urban and rural populations.”
Official Quarterly Documents
This summary is AI-generated from Shriram Finance Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.