Shriram Finance Q1FY27: PAT up 60%, AUM 15%

The key takeaway from Q1FY27 earnings

Shriram Finance reported a strong start to FY27, with standalone profit growth outpacing balance-sheet expansion in the quarter ended June 30, 2026. Standalone profit after tax (PAT) rose 59.79% year-on-year to ₹3,444.56 crore, supported by a sharp rise in net interest income (NII). Revenue momentum and operating efficiency were also in focus, with the cost-to-income ratio improving to 25.48% from 29.29% a year ago. The results were approved by the Board of Directors in a meeting held on July 24, 2026. The company said the unaudited standalone and consolidated financial results were prepared under Ind AS 34 and reviewed by joint statutory auditors M M Nissim & Co LLP and G. D. Apte & Co.

Headline numbers: profit, income, and AUM

Shriram Finance’s standalone NII for Q1FY27 came in at ₹8,055.70 crore, up 33.67% year-on-year from ₹6,026.43 crore. Revenue from operations increased to ₹13,393.68 crore in Q1FY27 from ₹11,535.63 crore in Q1FY26, a 15.99% rise. Total income was also reported at ₹13,412.11 crore, up 16.21% year-on-year. Assets under management (AUM) rose 15.26% year-on-year to ₹3,13,798.39 crore as of June 30, 2026, compared with ₹2,72,249.01 crore a year earlier. Earnings per share (basic) increased 29.41% to ₹14.83 from ₹11.46.

Beat versus Street estimates

The quarter included multiple references to performance versus estimates in the provided information. One data point said PAT was ₹3,444 crore, beating an estimate of ₹3,137 crore. Another reference highlighted standalone net profit at ₹34.5 billion (₹3,450 crore) versus analyst estimates of ₹30.65 billion (₹3,065 crore). While the figures are presented in slightly different formats across sources, the direction is consistent: profit was described as ahead of expectations. This matters for a lender because it typically signals that yield, funding costs, or credit performance came in better than consensus assumptions.

Margins and the interest income engine

Shriram Finance reported a net interest margin (NIM) of 9.04% in Q1FY27. The same data set compared this with 8.61% in Q4 on a sequential basis, indicating an improvement quarter-on-quarter. Another comparison cited NIM at 8.11% year-on-year, suggesting a step-up from the prior-year level. The company also indicated that the elevated NIM benefited from temporarily parked capital from a recent fundraise, according to the provided text. Investors typically track whether such margin gains are structural or timing-related, especially as liquidity and capital deployment normalise.

Costs, efficiency, and what moved profitability

Total expenses for Q1FY27 were listed at ₹8,790.00 crore versus ₹8,635.03 crore in Q1FY26, a 1.80% increase. The cost-to-income ratio improved to 25.48% from 29.29% year-on-year, indicating that income growth outpaced operating cost growth. The cost of liability was cited at 8.56% versus 8.59%. These metrics, taken together, point to operating leverage during the quarter.

Asset quality snapshot

On asset quality, the provided information cited gross stage 3 assets at 4.64% and net stage 3 assets at 2.33% for Q1FY27. One comparison referenced gross NPA at 4.64% versus 4.58% in Q4, while net NPA was described as steady at 2.33%. Credit cost to total asset was reported at 1.66% in Q1FY27. For NBFC investors, stability in net stage 3 or net NPA is a key check when growth accelerates.

Capital, leverage, and liquidity metrics

The quarter also included several balance-sheet and prudential indicators. Capital adequacy ratio (CRAR) was reported at 34.17% in Q1FY27, compared with 20.40% in Q4FY26 and 20.79% in Q1FY26. Leverage ratio was reported at 2.14x versus 3.82x. Liquidity coverage ratio was listed at 262.54%. Net worth was reported at ₹1,08,520.62 crore, up 83.97% year-on-year.

Business mix and disbursement growth details

Disbursement growth was reported at 19.51% year-on-year, reaching ₹49,974.49 crore in Q1FY27. In portfolio mix commentary, commercial vehicle AUM was said to have surged 47% to ₹1.47 lakh crore. Passenger and commercial vehicle loans were reported to be up 20%, while construction equipment loans were down 25%. These mix shifts can influence yield, risk costs, and the pace at which AUM translates into NII.

A quick look at other Q1FY27 filings mentioned

The same compilation of results also included two other earnings snapshots.

One standalone filing reported revenue of ₹404 crore in Q1FY27, up 12% year-on-year from ₹362 crore. However, profit after tax was a loss of ₹689 crore, widening from a loss of ₹276 crore, with total comprehensive income at a loss of ₹684 crore versus a loss of ₹277 crore. Basic and diluted EPS was reported at -₹4.05 versus -₹1.73. The commentary attributed the wider loss to higher employee benefits and other expenses despite revenue growth.

Another ticker reference, “531359”, reported quarterly revenue of ₹2,35,800 crore (+12% YoY), PAT of ₹19,200 crore (+17% YoY), and an EBITDA margin of 16.8%. The board declared a dividend of ₹10 per share, and the update also mentioned Jio adding 8 million subscribers.

Market reaction and what to watch next

One reference in the provided text said Shriram Finance shares declined 2.02% to 1,005.10 around the results, despite the strong year-on-year profit growth. The board meeting on July 24, 2026 also approved a resource mobilisation plan for debt securities issuance from August to October 2026, as per the information shared. Going forward, investors typically monitor whether NIM remains around the reported 9.04% as capital gets deployed, and whether stage 3 metrics remain stable alongside the reported disbursement growth.

Key figures table

Conclusion

Shriram Finance’s Q1FY27 results combined higher NII, a stronger cost-to-income ratio, and steady reported stage 3 metrics, resulting in PAT growth of nearly 60% year-on-year. The quarter also featured strong disbursement growth and a higher reported capital adequacy ratio. Separately, other filings in the same results stream showed mixed outcomes, including one company’s losses widening despite revenue growth and another reporting large-scale revenue and PAT growth with a dividend. The next visible milestone in Shriram Finance’s disclosures, as mentioned, is the planned debt securities issuance window from August to October 2026.

Source: Original filing PDF (exchange portal) and results excerpts provided in the input text.