Shriram Finance Q2 Profit Rises 59% to Rs 3,677 Crore
The lender also declared an interim dividend of Rs 6.50 per share for FY27.
Key Takeaways
- Standalone Q2 FY27 profit was about Rs 3,677 crore, up about 59.4% year on year.
- Consolidated profit was about Rs 3,684 crore, up about 59.2%.
- AUM rose about 17% to about Rs 3.29 lakh crore, and net interest margin widened to 9.52% from 8.19%.
- The interim dividend is Rs 6.50 per share, with a record date of October 29, 2026.
Shriram Finance, the Indian non-banking lender, reported about 59% higher profit for the July to September 2026 quarter (Q2 FY27). Standalone profit after tax was about Rs 3,677 crore, compared with about Rs 2,307 crore a year earlier. The board also declared an interim dividend of Rs 6.50 per share.
Consolidated profit was about Rs 3,684 crore, up about 59% from about Rs 2,314 crore in Q2 FY26. Assets under management (AUM) stood at about Rs 3.29 lakh crore on September 30, 2026, up about 17% year on year. All growth rates in this post are year on year unless stated.
Shriram Finance Q2 FY27 at a glance
| Detail | Value |
|---|---|
| Quarter | July to September 2026 (Q2 FY27), results announced October 23, 2026 |
| Standalone profit after tax | About Rs 3,677 crore, up about 59.4% from about Rs 2,307 crore |
| Consolidated profit | About Rs 3,684 crore, up about 59.2% from about Rs 2,314 crore |
| Standalone net interest income | About Rs 8,661 crore, up about 38.2% from about Rs 6,267 crore |
| Assets under management | About Rs 3.29 lakh crore, up about 17% |
| Net interest margin | 9.52%, against 8.19% a year earlier |
| Interim dividend | Rs 6.50 per share (325% of the Rs 2 face value) |
| Dividend record date | October 29, 2026 |
How a vehicle lender grew profit faster than its loan book
Shriram Finance is best known for loans on commercial vehicles, and it also lends for two-wheelers and to small businesses. It took its current form in December 2022, when Shriram Transport Finance merged with Shriram City Union Finance.
The quarter's numbers show profit growing far faster than the loan book. AUM rose about 17%, but net interest income, which is interest earned minus interest paid, rose about 38.2%. The net interest margin widened to 9.52% from 8.19%, so the company kept more of every rupee it lent.
| When | What happened |
|---|---|
| December 2022 | Shriram Transport Finance and Shriram City Union Finance merge into Shriram Finance |
| Q2 FY26 | Standalone profit of about Rs 2,307 crore, the base for this year's comparison |
| October 23, 2026 | Q2 FY27 results and the Rs 6.50 interim dividend announced |
Asset quality barely moved even as profit jumped
Gross Stage 3 assets, the measure of loans that have turned bad, were 4.65% against 4.57% a year earlier. Net Stage 3 assets fell to 2.31% from 2.49%. So bad loans edged up slightly before provisions, but the part not covered by provisions came down.
What the margin jump says for lenders and borrowers
For investors, the quarter shows how much a wider margin can lift profit when the loan book grows at a steady pace. Profit rose about 59%, while AUM rose about 17%. The gap came mostly from the margin, not from lending more.
For small businesses and transporters who borrow from such lenders, a higher margin means the lender earns more on each loan. Borrowers can compare rates across lenders before they sign.
Shareholders get Rs 6.50 per share by November 20
Shareholders on the register on October 29, 2026, the record date, will receive the interim dividend of Rs 6.50 per share. Reports say it will be paid on or before November 20, 2026. The dividend is for the financial year 2026-27.
