Shriram Finance Q2 Results, October 23, 2026: Profit Up 59% to ₹3,677 Crore

The Shriram Finance Q2 results landed on October 23, 2026, and the headline is hard to miss: standalone profit after tax rose 59.37% to ₹3,677.03 crore for the September quarter, against ₹2,307.18 crore a year ago. Net interest income (NII) grew 38.20% to ₹8,661.04 crore. All figures here are from the company’s board meeting outcome, press release and investor update filed on NSE.

But read one line further and you see why the stock story is a little more nuanced than a 59% jump. Basic earnings per share rose 27.38% to ₹15.63, from ₹12.27. Profit grew far faster than per-share earnings, and the reason sits in the notes to the accounts.

Shriram Finance Q2 results: the MUFG money is doing a lot of work

In April 2026 the board allotted 47,11,21,055 shares to Japan’s MUFG Bank at ₹840.93 each, raising ₹39,617.98 crore for a 20% stake on a fully diluted basis. The filing says the entire amount has now been deployed, with ₹2,166.76 crore of it used during the September quarter.

That capital shows up everywhere. Net worth stood at ₹1,10,563 crore at the end of September, up 82.42% from ₹60,610 crore a year earlier. Total capital adequacy rose to 33.24% from 20.68%. Borrowings, meanwhile, barely moved, up just 0.84% year on year, even as total assets grew 18.62%.

The effect on the P&L is direct. Interest expense fell 9.90% year on year to ₹5,007.83 crore while interest income rose 15.59%. Net interest margin (NIM) widened to 9.52% from 8.19% a year ago and 9.04% in the June quarter. Cheaper funding of that kind is a big part of why profit raced ahead.

The flip side is dilution. Return on equity, which the company calculates on closing net worth, slipped to 13.19% from 15.10%, even though return on assets improved to 3.95% from 2.89%. More equity earning a similar spread means a lower ROE, at least until the balance sheet is levered up again.

Loan book and asset quality

Assets under management (AUM) rose 16.96% year on year to ₹3,29,021.72 crore, and 4.85% over June. Commercial vehicles are still the backbone at 46.51% of AUM, growing 19.42% from a year ago. Passenger vehicle loans grew 20.14%.

A few segments stood out:

• Gold loans jumped 68.17% year on year to ₹8,974 crore, the fastest-growing book, though still only 2.73% of AUM.
• MSME loans grew 10.06% in a single quarter, to ₹46,184 crore.
• Construction equipment shrank 22.36% year on year, so the company is clearly pulling back there.

Asset quality was broadly stable. Gross Stage 3 assets were 4.65% of loans, against 4.64% in June and 4.57% a year ago. Net Stage 3 improved to 2.31% from 2.49%, as provision coverage on Stage 3 rose to 51.48% from 46.70%. Cost-to-income fell to 22.52% from 27.76%.

Dividend and the half-year view

The board declared an interim dividend of ₹6.50 a share (325% on the ₹2 face value). The record date is October 29, 2026, and payment is due before November 20, 2026.

For the first half of FY27, standalone profit rose 59.57% to ₹7,121.59 crore and NII rose 35.98% to ₹16,716.74 crore.

What we’d watch

This was a strong quarter, but a chunk of the margin gain comes from replacing debt with MUFG’s equity, and that’s a one-time shift. From here, the question is whether Shriram can keep growing AUM in the high teens while holding Stage 3 near 4.6%, and how fast it puts that very high capital buffer to work to pull ROE back up. If you want a framework for reading lender results like these, our guide on how to analyse quarterly results covers it step by step. For another financial services print from the same day, see our note on SBI Card’s Q2 results.

Disclaimer: This article is for information and education only and is not investment advice. Please do your own research or consult a SEBI-registered adviser before making investment decisions.