Shriram Finance Q4FY26: Stock drops 5%, targets +19%

What happened to Shriram Finance shares

Shriram Finance shares fell nearly 5% on the NSE after the company reported its March 2026 quarter (Q4FY26) results. The stock touched an intraday low of ₹963.75, even as the company posted higher profit and revenue for the quarter.

At around 11:50 AM, the stock was trading 3.4% lower at ₹976.90 versus the previous close of ₹1,011.30. The move came even as the broader market was positive, with the Nifty50 up 0.49% at 24,015.30.

Shriram Finance’s market capitalisation was reported at ₹2,29,000 crore (₹2.29 trillion). The stock was also down about 13% from its 52-week high of ₹1,108, which it hit on February 28, 2026.

Q4FY26 profit rises 41% year-on-year

For Q4FY26, Shriram Finance reported a net profit of ₹3,014 crore, up 41% from ₹2,139 crore in the year-ago period. Revenue for the quarter rose 9% to ₹12,509 crore versus ₹11,454 crore a year ago.

Net interest income (NII) increased 15.58% to ₹6,994 crore. Alongside earnings growth, the company’s commentary in the coverage indicated continued demand across key lending segments.

A separate financial summary in the provided data listed Q4 FY25-26 revenue at ₹12,513 crore, gross profit at ₹9,234 crore, and net profit at ₹3,014 crore, with QoQ and YoY change rates also stated.

Growth in vehicle lending and AUM

Shriram Finance reported that loans for commercial vehicles grew 19.5% and lending for passenger vehicles increased 19.05%. These two segments together account for around two-thirds of its assets under management.

Total AUM was reported at ₹3,20,000 crore (₹3.2 trillion), up around 15%. The data positions vehicle financing as a key contributor to the balance sheet, with growth being tracked closely by brokerages.

The company’s performance in these segments matters because they influence both disbursement momentum and credit costs, especially in a quarter where investors appeared to react despite headline growth.

Asset quality and dividend announcement

On asset quality, gross non-performing assets (NPA) were 4.58% compared with 4.54% on a quarter-on-quarter basis. Net NPA was 2.33% versus 2.38% in the previous quarter.

Shriram Finance also announced a final dividend of ₹6 per share for FY26. The record date for the dividend was set as July 3, 2026.

For investors, the NPA numbers and the dividend timeline are among the key near-term reference points from the quarterly update.

Key numbers at a glance

What brokerages said: MOFSL and Antique

Motilal Oswal Financial Services (MOFSL) said Shriram Housing Finance delivered a steady operating performance, supported by demand across key lending segments and a strong capital position after the MUFG equity infusion. It added that disciplined cost control and stable credit metrics supported profitability and efficiency.

MOFSL said the evolving macro environment needs close tracking, and that the April to June 2026 quarter is expected to offer clearer signals on credit trends and demand. It expects AUM CAGR of around 17% and PAT CAGR of about 26% over FY26 to FY28, with RoA/RoE of roughly 3.8%/13.1% by FY28.

The brokerage maintained a Buy rating with a target price of ₹1,200, based on 2.2x FY28E book value.

Antique Stock Broking also maintained a Buy rating and set a 12-month target price of ₹1,185, valuing the stock at 2.2x FY28E price-to-book value. Antique projected RoA expansion from around 3.3% in FY26 to about 3.8% by FY28E, supported by an estimated 18% AUM growth over FY26 to FY28E.

Street targets and implied upside

With the stock at ₹1,011.30 at the previous close referenced in the data, MOFSL’s target of ₹1,200 implies upside of about 19%. Multiple broker notes in the provided text were constructive on the medium-term outlook, while also flagging macro tracking as a key monitorable.

Separately, the data said all 12 research reports available with Informist had a ‘buy’ (or equivalent) recommendation, with the highest target price at ₹1,225. The same section reported an average target price of ₹1,023.

Trading activity, returns, and valuation snapshot

The dataset also noted higher trading activity, with over 9 million shares changing hands on the NSE on Friday versus nearly 2 million during the same period on Wednesday.

It included recent price-return metrics and valuation indicators at the time of compilation.

Why the market reaction matters

The session’s move showed that price action can diverge from headline earnings growth, especially when a stock is judged against expectations and near-term risk factors. In this case, the stock fell even as profit rose 41% YoY and NII rose 15.58%.

The reported gross and net NPA levels, and how they trend through the April to June 2026 quarter, are likely to remain important markers because they directly affect credit costs and investor confidence in earnings quality. Brokerages also pointed to the macro environment as something to watch closely.

The dividend announcement adds a defined date for investors tracking payouts, with July 3, 2026 set as the record date.

Conclusion

Shriram Finance’s Q4FY26 results showed higher profit, revenue, and NII, alongside AUM growth to ₹3,20,000 crore. Yet the stock fell up to 5% on the day, even as benchmark indices were higher.

Brokerages cited steady performance and retained Buy ratings, with targets such as ₹1,200 and ₹1,185 indicating meaningful upside from the prior close. The next key checkpoint, as highlighted in brokerage notes, is how credit trends and demand look in the April to June 2026 quarter.