Sundaram Finance Limited Earnings Summary — Q4 FY2026
Sundaram Finance Consolidated Profit Grows to ₹554 Crores Driven by Strong Financing Margins
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 9 consecutive quarters.
- Revenue of ₹2,644 Cr is 12.6% higher year-on-year.
- Revenue has compounded at 9.5% 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 ₹636 Cr is 33.9% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 46.9% annualised across the period.
- Operating margin stands at 78.1% in Q1 FY2027.
- Operating margin expanded by 185 bps year-on-year.
- Over the last two years operating margin has contracted by 136 bps.
- PBT margin is 29.0%.
- Expense growth of 3.8% remained below revenue growth of 12.6%.
- Operating profit of ₹2,064 Cr is 15.3% 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 80/100 (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 | Stable | 2,644 | 2,560 | 2,514 | 2,386 | 2,349 | 2,259 | 2,190 | 2,085 | 1,952 | 2,156 |
| Expenses | Improving | 580 | 544 | 509 | 515 | 559 | 368 | 462 | 436 | 402 | 524 |
| Operating Profit | Stable | 2,064 | 2,017 | 2,005 | 1,871 | 1,790 | 1,891 | 1,729 | 1,649 | 1,550 | 1,632 |
| Operating Margin | Stable | 78.1% | 78.8% | 79.8% | 78.4% | 76.2% | 83.7% | 78.9% | 79.1% | 79.4% | 75.7% |
| Other Income | Volatile | 9 | 20 | -51 | 15 | 4 | 41 | 17 | 11 | 8 | -90 |
| Interest | Improving | 1,247 | 1,197 | 1,209 | 1,176 | 1,163 | 1,104 | 1,087 | 1,050 | 985 | 948 |
| Depreciation | Stable | 60 | 67 | 63 | 60 | 56 | 63 | 58 | 53 | 48 | 53 |
| Profit Before Tax | Improving | 767 | 773 | 682 | 650 | 575 | 765 | 601 | 557 | 525 | 541 |
| Tax | Improving | 198 | 192 | 160 | 159 | 164 | 211 | 150 | 151 | 122 | 152 |
| Net Profit | Improving | 636 | 554 | 541 | 488 | 475 | 553 | 455 | 436 | 435 | 268 |
| Net Margin | Improving | 24.1% | 21.6% | 21.5% | 20.5% | 20.2% | 24.5% | 20.8% | 20.9% | 22.3% | 12.4% |
Key Takeaways
- Revenue reached a record quarterly high of ₹2,560 crore, representing 13.3% YoY growth.
- Financing Margin remained steady at 32% for two consecutive quarters, reflecting disciplined cost-of-funds management.
- Quarterly net profit rose slightly to ₹554 crore, achieving the highest profit level in the reported multi-year period.
- Interest expenses decreased marginally to ₹1,197 crore from ₹1,209 crore in the prior quarter, supporting bottom-line growth.
- The company maintains a high-leverage model typical of NBFCs with total borrowings expanding to ₹69,636 crore.
- A consistent tax rate of 25% was observed for the quarter, in line with historical averages.
Management Guidance
Management emphasizes a conservative 'Sundaram Way' philosophy, prioritizing asset quality and liquidity over aggressive market share expansion.
Sentiment Shift
Stable
Performance remains consistent with high-quality compounding trends, despite a slight decline in financing margins compared to the year-ago period.
Outlook
The company is positioned as a high-quality compounder with robust presence in commercial vehicle financing and high institutional trust, though it remains sensitive to CV cycles.
From the Annual Report (Key Quotes)
“The company maintains a conservative 'Sundaram Way' philosophy, prioritizing asset quality over aggressive growth.”
“Management emphasizes 'safety, liquidity, and profitability' in that order.”
“Robust presence in home finance, general insurance, and asset management via subsidiaries.”
Official Quarterly Documents
This summary is AI-generated from Sundaram Finance Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.