Shriram Finance Q4 FY26: PAT rises 40.86%, NIM 8.61%

Key dates investors tracked

Shriram Finance Ltd. (NSE: SHRIRAMFIN) reported its last earnings for Q3 FY25-26 on January 23, 2026. The company’s upcoming results were scheduled for Q4 FY25-26 on April 24, 2026, which also matches the date referenced for its Q4 FY26 earnings call in the provided material. The latest disclosures included quarterly operational and profitability indicators, along with management commentary on macro conditions.

Macro backdrop flagged on the call

Management linked the operating environment to changes in India’s growth and tax collections. India’s GDP growth was cited at 7.8% in Q3 FY26 versus 8.4% in the previous quarter. FY26 growth projection was stated to have been revised to 7.6% from 7.1% in the commentary shared.

The call also referenced the IMF projection of 6.5% growth for FY27, while noting risks such as high oil prices and geopolitical tensions. On domestic activity indicators, GST collections in March were said to be up 8.8% year-on-year to over INR 200,000 crore, compared with INR 183,000 crore in March 2025. Gross GST revenue for FY25-26 was reported at INR 2,200,000 crore, up 8.3% over INR 2,000,000 crore in the previous year.

Disbursements increased year-on-year in Q4 FY26

Shriram Finance reported disbursement growth of 14.91% year-on-year for Q4 FY26. Disbursements in Q4 FY26 were stated at INR 50,952.30 crore versus INR 44,340.57 crore in Q4 FY25.

Separately, the provided highlights also referenced Q3 metrics, including disbursement growth of 14.17% year-on-year to INR 48,645 crore. Taken together, the data points show the company ending FY26 with sequential momentum in disbursements from Q3 to Q4, based on the numbers shared.

AUM crossed INR 3,00,000 crore as of March 31, 2026

Assets under management (AUM) as of March 31, 2026 were reported at INR 302,273.75 crore. This represented a 14.85% year-on-year increase over Q4 FY25 and a 3.62% sequential increase over Q3 FY26.

For comparison, the call noted AUM of INR 263,190.27 crore a year earlier and INR 291,709.03 crore in Q3 FY26. In the Q3 highlights embedded in the material, AUM was also referenced as having grown 14.63% year-on-year to INR 291,709.03 crore.

NII growth and NIM movement in Q4 FY26

Net interest income (NII) in Q4 FY26 was reported at INR 6,994.08 crore, up 15.58% year-on-year from INR 6,051.19 crore in Q4 FY25. Net interest margin (NIM) for Q4 FY26 was stated at 8.61%, compared with 8.25% in Q4 FY25 and 8.58% in Q3 FY26.

The Q3 highlights in the provided text also cited NII of INR 6,764.09 crore and NIM of 8.58% for Q3 FY26, indicating a modest quarter-on-quarter increase in NII and NIM from Q3 to Q4.

Profit after tax grew 40.86% year-on-year

Profit after tax (PAT) for Q4 FY26 was reported at INR 3,013.57 crore, compared with INR 2,139.39 crore in Q4 FY25 and INR 2,521.67 crore in Q3 FY26. The company described this as 40.86% year-on-year growth in Q4 FY26.

Earnings per share (EPS) for the quarter was stated at INR 16.02, versus INR 11.38 in Q4 FY25 and INR 13.40 in Q3 FY26. In the summary section provided separately, Shriram Finance was also described as reporting a net profit of Rs 3,014 for Q3 FY25-26, and the same net profit figure was repeated in the extracted performance panel.

Asset quality, credit cost, and operating efficiency

Asset quality for Q4 FY26 was reported with gross Stage 3 at 4.58% and net Stage 3 at 2.33%. This compared with 4.55% gross and 2.64% net in Q4 FY25, and 4.54% gross and 2.38% net in Q3 FY26.

Credit cost on total assets for FY26 was stated at 1.68%, versus 2.07% for Q4 FY25 and 1.62% for Q3 FY26, as mentioned in the material. The cost-to-income ratio was reported at 25.32% in Q4 FY26 versus 27.65% in Q4 FY25. Management commentary also reiterated a longer-term range of 26% to 27% for cost-to-income.

Liquidity position discussed on the call

The company stated overall liquidity at roughly INR 13,000 crore, describing it as sufficient for more than two months of liability repayment. It also said liquidity was reduced in anticipation of large capital funds being targeted for the first week of April, which was referenced as INR 40,000 crore.

Snapshot of key Q4 FY26 numbers

How management framed growth and segments

In the Q&A excerpts included, a question highlighted that most segments, except CV and farm equipment, were seeing rapid growth in Q4. Management also said it ended the year with around 12% to 15% growth in most segments, adding that even flat sales volumes could translate into growth if customer retention and penetration improve.

On one of the growth prompts, management stated: “Yeah, 15%, 20%, it may grow by 5% to 10% - another 5% to 10% over the next two quarters.” The material also included a discussion on whether any contingent provisions or management overlay were contemplated, but no specific numeric outcome was provided in the excerpt.

Additional disclosed indicators in the material

The provided text also listed a market snapshot including operating revenue of INR 41,834.42 crore, net profit of INR 9,761 crore, promoter holding of 25.38%, and EPS (TTM) of INR 38.78. It also cited sales growth of 19.65 and ROE of 18.64%.

A separate section on Q2 FY26 stated PAT of INR 2,307.18 crore and total income of INR 11,916.73 crore, with AUM at INR 281,309.46 crore. It also referenced an interim dividend of INR 4.80 per share, branch network of 3,225, and customer base of 96.64 lakh, alongside Total CRAR of 20.68% and LCR of 297.21%.

Why the Q4 FY26 print mattered for investors

The quarter combined mid-teens growth in disbursements and AUM with year-on-year expansion in NII and a sharp rise in PAT, based on the reported figures. Margins were described as stable to improving, with NIM at 8.61% in Q4 FY26 versus 8.58% in Q3 FY26.

At the same time, asset quality indicators were broadly steady on a sequential basis, with gross Stage 3 moving from 4.54% in Q3 FY26 to 4.58% in Q4 FY26. Management also drew attention to operating leverage, citing a lower cost-to-income ratio in Q4 FY26.

Conclusion

Shriram Finance’s Q4 FY26 disclosures highlighted higher disbursements, AUM above INR 300,000 crore, NII growth, and PAT of INR 3,013.57 crore, alongside relatively stable Stage 3 ratios. The next set of updates will hinge on subsequent quarterly results and any further detail the company provides on segment trends, funding costs, and liquidity positioning.