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Shriram Finance Ltd
NSE: SHRIRAMFIN BSE: 511218 INE721A01047 Financial Services NBFC 🔎 Screen
NIFTY 50 NIFTY 100 NIFTY 200 NIFTY 500 Fin. Services
₹172,777 Cr
Market Cap
2.64
P/B
8.61%
NIM
16.4%
ROE
GNPA
Fin. Margin
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📈 Price History
Ratio Health
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About

Business Overview Shriram Transport Finance Company Ltd is a part of the SHRIRAM Group conglomerate which has a significant presence in the financing business. STFC is engaged in the business of commercial vehicle financing mainly focusing on trucks from preowned to new ones. It's a Deposit-taking NBFC comprising 1,758 branches, 831 rural centers, and partnerships with ~500 private financiers.

✓ Strengths 2
  • Company has delivered good profit growth of 32.0% CAGR over last 5 years
  • Company has been maintaining a healthy dividend payout of 20.9%
! Concerns

No concerns data yet.

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Solid quarter with PAT +40.9% YoY driven by strong revenue growth and lower credit costs, but GNPA inched up and employee costs rose from Labour Code changes. quarter Investor Presentation One-Pager? Mar 2026
Revenue from Operations
₹12,508.72 Cr
+9.2% YoY (₹11,454.23 Cr)
Net Profit Margin
24.05%
+538bps YoY (18.67%)
PAT
₹3,013.57 Cr
+40.9% YoY (₹2,139.39 Cr)
Gross NPA Ratio
4.58%
+3bps QoQ (4.55%) but Net NPA improved to 2.33% from 2.64%
What Went Right
  • PAT surged 40.9% YoY in Q4 to ₹3,013.57 Cr; full-year PAT ₹9,998.15 Cr (core +2.4% ex-exceptional).
  • Net NPA ratio improved to 2.33% (vs 2.64% Q4 FY25); provision coverage rose to 50.34% from 43.28%.
  • Liquidity coverage ratio jumped to 323.17% from 286.73%, indicating strong liquidity position.
  • Total dividend for FY26 increased to Rs.10.80 per share (540%), up from prior year's Rs.4.80 interim alone.
  • Strategic equity infusion of ₹39,618 Cr from MUFG (post-period) strengthens capital and growth runway.
What to Watch
  • Gross NPA ratio crept up to 4.58% from 4.55% in Q4 FY25, though absolute stage-3 loans grew in line with portfolio.
  • Employee costs spiked ₹196.95 Cr due to new Labour Codes (gratuity + compensated absences), pressuring margins.
  • Full-year net profit margin (ex-exceptional) improved only 99bps to 20.75% despite faster revenue growth, as finance costs rose 16.6%.
  • Cash and equivalents dropped sharply to ₹5,741 Cr from ₹10,681 Cr, though partly due to deployment in loans and investments.
Investor Lens
The thesis remains intact: Shriram Finance delivered double-digit revenue growth, controlled credit costs, and improved net NPA metrics, all while absorbing one-off Labour Code expenses. The large MUFG equity infusion (20% stake) will boost capital adequacy well above the current 20.40% and support aggressive AUM expansion. However, investors should monitor rising finance costs (NIM pressure) and whether GNPA stabilizes; also watch quarterly trends in disbursement growth and co-lending performance. Post-dilution EPS will take a temporary hit but the enlarged capital base positions the company to capture market share in its core vehicle and MSME lending segments.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong profit growth of 40.9% YoY; financing margin expands to 33%
Revenue
Revenue grew 9.2% YoY to ₹12,513 Cr, supported by higher lending income. Sequentially, revenue rose 2.8% from the previous quarter.
Profitability
Net profit surged 40.9% YoY to ₹3,021 Cr, with EPS rising from ₹11.40 to ₹16.06. PBT stood at ₹3,917 Cr, while the effective tax rate was 23%.
Margins
Financing margin improved sharply to 33% from 26% a year ago and 29% last quarter, indicating better spread management. This drove strong profitability.
Cash Flow
Skip — not applicable for banking/financial companies
Balance Sheet
Total assets stood at ₹321,375 Cr, with reserves of ₹65,542 Cr. ROE improved to 16.4%. Specific borrowing and capital adequacy data are not disclosed.
Key Risks
Potential NIM compression if funding costs rise; asset quality stress in unsecured lending; regulatory changes affecting NBFC operation costs.
Outlook
Strong loan growth and margin expansion support earnings momentum. However, asset quality and competitive pressures remain key monitors.
Generated by AI · Mar 2026 results · Not investment advice
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NIM, GNPA, CASA, CAR, ROA, ROE and more — extracted from investor presentations
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