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Sundaram Finance Ltd
NSE: SUNDARMFIN BSE: 590071 INE660A01013 Financial Services NBFC 🔎 Screen
NIFTY 500 Midcap 150
₹49,498 Cr
Market Cap
3.35
P/B
4.80%
NIM
15.0%
ROE
GNPA
30.0%
Fin. Margin
+20.4%
% from 52W High
52
α RS
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

Sundaram Finance is a registered deposit taking NBFC established in 1954. The Co. is engaged in retail finance across multiple domains like Vehicle finance, Home Finance, Mutual Funds, General insurance and Financial service distribution

✓ Strengths 1
  • Company has been maintaining a healthy dividend payout of 21.6%
! Concerns 2
  • Stock is trading at 3.43 times its book value
  • Company has low interest coverage ratio.
Key Ratios Snapshot
📊 Sector Averages
📈 Growth Pattern
📊 Quick Scorecard
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3-Statement Financial Model
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Strong beat – AUM, NII, and PAT grew in double digits with ROA above 3% and cost-to-income at best-in-class 28.7%. quarter Investor Presentation One-Pager? Mar 2026
Revenue (Q4)
₹2,066 Cr
+14% YoY (total revenue including dividend income)
Cost-to-Income (FY26)
28.71%
Improved from 30.80% in FY25
PAT (Q4)
₹608 Cr
+11% YoY (excluding exceptional items)
AUM (Mar 26)
₹59,908 Cr
+16.4% YoY; ROA 3.03% vs 2.85%
What Went Right
  • AUM grew 16.4% YoY to ₹59,908 Cr; disbursements up 14% to ₹32,321 Cr.
  • NII rose 21% to ₹3,376 Cr; PAT up 19% to ₹1,834 Cr for FY26.
  • ROA improved to 3.03% from 2.85%; cost-to-income fell to 28.71% from 30.80%.
  • Asset quality stable: Gross Stage 3 at 1.44% with provision cover up to 53%.
What to Watch
  • Core ROE (ex-subsidiaries) slipped to 18.4% from 19.0%.
  • Impairment surged in Q4 to ₹81 Cr vs negative ₹1 Cr in Q4FY25.
  • Royal Sundaram insurance subsidiary reported a Q4 PAT loss of ₹53 Cr and combined ratio worsened to 115.5%.
  • Labour Code exceptional item of ₹75 Cr for FY26 dented net profit.
  • Market cap declined to ₹48,614 Cr from ₹50,824 Cr despite earnings growth.
Investor Lens
Sundaram Finance delivered a robust FY26 with double-digit growth in AUM, NII, and PAT. ROA broke above 3% and cost control remains best-in-class. However, core ROE (ex-subsidiaries) declined, and the insurance arm dragged on consolidated performance. Asset quality held steady despite industry headwinds, aided by tight underwriting and improved recoveries. The key negative was a sharp increase in impairment in Q4, which warrants monitoring. Management declared a generous 400% dividend but offered no explicit forward guidance. Thesis remains intact given strong core lending franchise and market positioning; watch credit costs and insurance turnaround in FY27.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Revenue up 13% but profit flat; margin compression persists
Revenue
Revenue rose 13.3% YoY to ₹2,560 Cr, with a modest 1.8% QoQ increase. This reflects steady loan growth, but the pace appears to be decelerating sequentially.
Profitability
Net profit was nearly flat at ₹554 Cr (+0.2% YoY, +2.4% QoQ), with EPS of ₹49.88 versus ₹49.77 a year ago. PBT stood at ₹773 Cr, and the tax rate was 25%, indicating margin pressures are offsetting revenue gains.
Margins
Financing margin contracted to 32% from 35% YoY, remaining unchanged QoQ. Higher cost of funds is compressing spreads, a key concern for profitability.
Cash Flow
Skip — not applicable for banking/financial companies.
Balance Sheet
Total assets stood at ₹85,795 Cr and reserves at ₹14,783 Cr. ROE was 15.3%, but no details on asset quality or capital adequacy were provided.
Key Risks
NIM compression due to elevated funding costs is the primary risk. Asset quality could weaken if economic growth slows. Additionally, regulatory changes for NBFCs may impact compliance costs or lending norms.
Outlook
Margin pressure is likely to persist until interest rates ease. Loan growth may sustain, but earnings recovery depends on stabilizing spreads and maintaining credit quality.
Generated by AI · Mar 2026 results · Not investment advice
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Revenue by Segment

Segment Q2FY26 Q3FY26 Trend
Asset Financing
2,200
EBIT 583
2,337
EBIT 678
Others
178
EBIT 71
b) Others
186
EBIT 73
Total 2,386 2,515

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

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NIM, GNPA, CASA, CAR, ROA, ROE and more — extracted from investor presentations
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📊 Analysis Methodology

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