Shriram Finance sees 9.52 percent margin before easing for Shriram Finance stock

Published on 10/29/2026 at 15:37 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Credit costs reached 2.03 percent in the September quarter. Shriram Finance stock carries a 15-17 percent fiscal 2027 growth range.

What changes for Shriram Finance

Second-quarter profit after tax rose 59.37 percent year over year.
Assets under management increased 16.96 percent to INR 329,021.72 crore as of September 30, 2026.
The board declared an interim dividend of INR 6.50 per share with an October 29, 2026 record date.

Shriram Finance, INE721A01013, Illustration mit AI erstellt.

Shriram Finance (ISIN INE721A01013) lifted its net interest margin to 9.52 percent in the second quarter ended September 30, 2026, according to the Shriram Finance earnings-call transcript filed with the National Stock Exchange. Management expects the margin to ease toward about 9 percent over the medium term and 8.50 percent over the longer term.

The new conclusion is that the margin benefit is powerful but temporary. Company executives linked the expansion to fresh capital, while higher borrowing costs and a greater share of lower-yielding new-vehicle loans could weigh on the longer-term level.

Credit costs temper the margin gain

Credit cost on total assets reached 2.03 percent in the September quarter, up from 1.68 percent a year earlier, the transcript said. Management retained a long-term 2 percent credit-cost expectation but warned that selected regions and products could see a temporary increase of 30 to 40 basis points.

The lender also reduced its fiscal 2027 assets-under-management growth range to 15-17 percent from an earlier 18 percent. The cautious range reflects weaker monsoon conditions in some regions and keeps asset quality central to the market interpretation.

Strong growth supports the balance

Profit after tax rose 59.37 percent year over year to INR 36.77 billion in the September quarter. Assets under management grew 16.96 percent year over year to INR 329,021.72 crore, while disbursements increased 25.71 percent to INR 54,079.02 crore.

The board also declared an interim dividend of INR 6.50 per share on October 23, 2026, with October 29, 2026 set as the record date. For investors, the central question is whether earnings growth can offset the expected normalization of margins and temporary credit pressure.