Sundaram Finance Q1 FY26: PAT up 9%, AUM +17%

Key takeaway from the quarter

Sundaram Finance Ltd reported its first-quarter FY26 performance for the quarter ended 30 June 2025, showing year-on-year growth in revenue and profit alongside higher expenses. Consolidated profit after tax (PAT) for Q1 FY26 came in at ₹475.21 crore, up 9.28% year-on-year from ₹434.85 crore. Consolidated revenue from operations was reported at ₹2,348.93 crore, up 20.36% year-on-year. The company also disclosed business metrics across lending, general insurance and asset management, including assets under management (AUM) and asset quality indicators.

Earnings calendar: next reported date on the dataset

The dataset also lists an upcoming earnings date for Sundaram Finance Ltd as 25 May 2026. This is presented as a forward-looking calendar marker, separate from the Q1 FY26 numbers disclosed for the quarter ended 30 June 2025.

Consolidated income and profit: multiple reported line items

Across the provided figures, Q1 FY26 consolidated performance is described using slightly different income labels in different tables and extracts:

• A consolidated “Total Income” figure of ₹2,353.10 crore for Q1 FY26 is shown in one financial statement table, against ₹2,157.27 crore in Q4 FY25 and ₹1,959.65 crore in Q1 FY25.
• A separate extract lists “Revenue from Operations” at ₹2,348.93 crore for the quarter ended 30-06-2025, and compares it with ₹1,951.60 crore.
• Another quarterly table lists “Total Revenue” at ₹2,305.22 crore for Jun 25, compared with ₹2,535.41 crore for Mar 26 and ₹1,910.90 crore for Jun 24.

Despite these presentation differences, the direction is consistent in the dataset: revenue or total income is higher year-on-year for the quarter, and PAT is higher year-on-year.

Profitability snapshot: PAT, PBT and margin signals

PAT for Q1 FY26 is consistently shown at ₹475.21 crore in the dataset. Profit before tax (PBT) is reported as ₹575.32 crore in one table for Q1 FY26, with tax of ₹163.52 crore and profit after tax of ₹475.21 crore. Another section presents PBT at ₹638.73 crore with a quarter-on-quarter decline of 16.42% from ₹764.23 crore, while still showing net profit at ₹475.21 crore.

Separately, an earnings summary states:

• Revenue: ₹1,190 crore (₹11.9b), up 32% from 1Q 2025.
• Net income: ₹475 crore (₹4.75b), up 9.3% from 1Q 2025.
• Profit margin: 40% versus 48% in 1Q 2025, with the decline attributed to higher expenses.
• EPS: ₹43.12 versus ₹39.46 in 1Q 2025.

This margin commentary aligns with the expense growth shown in the quarterly tables.

Expenses moved higher; operating income showed mixed movement

Expense trends are highlighted in multiple places:

• One financial statement table shows total expenses at ₹1,591.14 crore in Q1 FY26, up 15.7% quarter-on-quarter from ₹1,374.87 crore and up 16.2% year-on-year from ₹1,369.18 crore.
• A quarterly table reports total operating expense at ₹1,777.78 crore for Jun 25 versus ₹1,816.53 crore for Mar 26 and ₹1,435.10 crore for Jun 24.
• The same quarterly table shows operating income at ₹527.44 crore for Jun 25, down from ₹718.88 crore for Mar 26, but up from ₹475.80 crore for Jun 24.

The dataset also includes a separate line stating operating profit at ₹1,167.27 crore (up 1.94% QoQ and 17.53% YoY) and PBDT at ₹219.39 crore (down 20.09% QoQ and up 28.55% YoY). These items are presented as part of the broader Q1 performance description without reconciliation to the other operating-income table.

Business momentum: disbursements and net interest income

On the standalone side, the dataset highlights growth in lending activity and core income:

• Disbursements grew 6% to ₹7,310 crore in Q1 FY26 from ₹6,908 crore in Q1 FY25.
• Net interest income (NII) grew 25% to ₹781 crore in Q1 FY26 from ₹623 crore in Q1 FY25.
• Profits from operations grew 14% to ₹436 crore in Q1 FY26 from ₹383 crore in Q1 FY25.
• The cost-to-income ratio improved to 29.84% in Q1 FY26 from 32.90% in Q1 FY25.

The same standalone section states that higher dividend income resulted in profit after tax rising 39% in Q1 FY26, with net profit at ₹429 crore compared with ₹308 crore in Q1 FY25. In another standalone extract table, profit after tax (PAT) is listed at ₹428.72 crore for the quarter ended 30-06-2025.

AUM growth: lending and general insurance led the increase

Sundaram Finance disclosed AUM across business lines:

• AUM in lending and general insurance stood at ₹80,939 crore as on 30 June 2025, compared with ₹69,234 crore as on 30 June 2024, representing 17% growth.
• AUM of the asset management business stood at ₹80,501 crore as on 30 June 2025, compared with ₹80,565 crore as on 30 June 2024.
• Standalone AUM grew 17% to ₹53,278 crore as on 30 June 2025, from ₹45,671 crore as on 30 June 2024.

These figures indicate that the main growth came from lending and general insurance AUM, while asset management AUM remained broadly stable year-on-year.

Asset quality and capital: NPAs and adequacy ratios

The dataset provides asset-quality indicators under RBI norms for NBFCs and stage-3 metrics:

• Gross stage 3 assets: 1.91% with 44% provision cover as on 30 June 2025, versus 1.56% with 47% provision cover as on 30 June 2024.
• Net stage 3 assets: 1.08% as on 30 June 2025, versus 0.84% as on 30 June 2024.
• Gross NPA: 2.66% and Net NPA: 1.71% as on 30 June 2025, versus 2.21% and 1.41% as of 30 June 2024.
• Capital Adequacy Ratio: 20.0% (Tier I 17.3%) as of 30 June 2025, compared with 19.3% (Tier I 16.2%) as of 30 June 2024.

The reported ratios show higher stressed-asset metrics year-on-year, alongside a higher capital adequacy position.

Sundaram Finance Holdings: a separate set of quarterly figures

The dataset separately summarizes Sundaram Finance Holdings Ltd for Q1 FY 2025-26:

• Total income: ₹181.02 crore versus ₹218.01 crore in the previous quarter, a 17.0% decline QoQ and 308.8% growth YoY.
• Total expenses: ₹139.96 crore versus ₹11.66 crore, up 1100.3% QoQ and 1320.9% YoY.
• Profit before tax: ₹41.06 crore versus ₹206.34 crore, down 80.1% QoQ.
• Profit after tax: ₹158.38 crore versus ₹269.32 crore, down 41.2% QoQ.
• EPS: 7.10 versus 12.10, down 41.3% QoQ.

These numbers are presented as a separate entity’s results and should not be mixed with Sundaram Finance Ltd’s consolidated performance.

Summary table: key reported Q1 FY26 figures

Management view and why investors track these lines

Harsha Viji, Executive Vice Chairman, said Q1 FY26 saw continued macroeconomic sluggishness over the past few quarters, with economic activity slower compared to Q1 FY25. In this context, investors typically track the interplay between growth and costs: revenue growth and AUM expansion versus higher expenses and changes in profit margin.

The quarter’s dataset also points to a split narrative. On one hand, PAT rose year-on-year and AUM expanded 17% in lending and general insurance. On the other hand, the margin commentary explicitly flags a drop in profit margin to 40% from 48% a year ago, driven by higher expenses. Asset-quality indicators, including gross and net stage 3 assets and GNPA/NNPA, were also higher than a year earlier, while capital adequacy improved.

Conclusion

Sundaram Finance’s Q1 FY26 disclosures show higher year-on-year revenue and PAT, supported by AUM growth in lending and general insurance, alongside higher expenses and weaker profit margin versus the year-ago quarter. The dataset lists the next earnings date as 25 May 2026, which will be a key checkpoint for updated financials and operating metrics.