Shriram Finance Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Shriram Finance Ltd filed with BSE on 27 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Shriram Finance reported disbursement growth of 19.51% year-on-year and assets under management growth of 15.26% year-on-year for Q1 FY'27. Net interest income grew 33.67% and profit after tax grew 59.79%, with net interest margin at 9.04% compared to 8.11% a year earlier. Management attributed part of the margin gain to surplus liquidity from a recent capital infusion and discussed plans to grow the new vehicle, MSME and gold loan portfolios.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Disbursements: INR49,974.49 crores (Q1 FY'27)
p. 4
“Our disbursement in Q1 FY '27 this year aggregated to INR49,974.49 crores versus INR41,816.75 crores in Q1 FY '26.”
Parag Sharma, page 4 of the filed PDF · View the filing
Assets under management: INR3,13,798.39 crores (as on 30th June 2026)
p. 4
“Our assets under management stood at INR3,13,798.39 crores as against INR2,72,249.01 crores a year ago and INR3,02,273.75 crores in Q4 FY '26.”
Parag Sharma, page 4 of the filed PDF · View the filing
Net interest income: INR8,055.70 crores (Q1 FY'27)
p. 4
“We earned a net interest income of INR8,055.70 crores in Q1 FY '27 this year as compared to INR6,026.43 crores in Q1 FY '26.”
Parag Sharma, page 4 of the filed PDF · View the filing
Profit after tax: INR3,444.56 crores (Q1 FY'27)
p. 4
“Our profit after tax grew by 59.79% and stands at INR3,444.56 crores in Q1 FY '27 as against INR2,155.7 crores in Q1 FY '26.”
Parag Sharma, page 4 of the filed PDF · View the filing
Net interest margin: 9.04% (Q1 FY'27)
p. 5
“Our net interest margin in Q1 FY '27 was 9.04% as against 8.11% in Q1 FY '26 and 8.61% in Q4 FY '26.”
Parag Sharma, page 5 of the filed PDF · View the filing
Earnings per share: INR14.83 (Q1 FY'27)
p. 5
“Our earnings per share for the quarter stood at INR14.83 as against INR11.46 in Q1 FY '26.”
Parag Sharma, page 5 of the filed PDF · View the filing
Gross Stage 3: 4.64% (Q1 FY'27)
p. 5
“On asset quality, gross Stage 3 in Q1 FY '27 stood at 4.64% and net Stage 3 at 2.33% as against 4.53% gross and 2.57% net in Q1 FY '26 and was 4.58% gross and 2.33% net in Q4 FY '26.”
Parag Sharma, page 5 of the filed PDF · View the filing
Credit cost to total assets: 1.66% (Q1 FY'27)
p. 5
“Our credit cost to total asset for Q1 FY '27 stood at 1.66% as against 1.64% for Q1 FY '26 and 1.68% for Q4 FY '26.”
Parag Sharma, page 5 of the filed PDF · View the filing
Cost-to-income ratio: 25.48% (Q1 FY'27)
p. 5
“Our cost-to-income ratio was 25.48% in Q1 FY '27 as against 29.29% recorded in FY '26.”
Parag Sharma, page 5 of the filed PDF · View the filing
Cost of liability: 8.56% (Q1 FY'27)
p. 5
“The cost of liability has also come down from 8.59% to 8.56%, 3 basis point reduction.”
Parag Sharma, page 5 of the filed PDF · View the filing
Incremental cost of borrowing: 7.77% (Q1 FY'27)
p. 5
“The incremental cost is at 7.77%.”
Parag Sharma, page 5 of the filed PDF · View the filing
Liquidity coverage ratio: 262.54% (Q1 FY'27)
p. 5
“The liquidity coverage ratio for the company was healthy at 262.54% and liquidity is well maintained for 6 months of liability repayment.”
Parag Sharma, page 5 of the filed PDF · View the filing
Leverage ratio: 2.14x (Q1 FY'27)
p. 5
“The leverage ratio came down because of this large capital infusion, is at 2.14x versus 3.82x as of March.”
Parag Sharma, page 5 of the filed PDF · View the filing
Capital adequacy ratio: 34.1% (Q1 FY'27)
p. 5
“The capital adequacy ratio for the company was healthy at 34.1%.”
Parag Sharma, page 5 of the filed PDF · View the filing
MSME disbursement: INR6,184 crores (Q1 FY'27)
p. 9
“MSME, INR6,184 crores; 2-wheelers, INR3,548 crores; gold, INR5,153 crores; personal loans, INR2,773 crores, total INR49,974 crores.”
Sunder Subramanian, page 9 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
AUM/disbursement growth — 18% · FY27
stated conditionally by Umesh Revankar
p. 6
“Our earlier guidance of 18% will hold good unless after second quarter, we revise it.”
Umesh Revankar, page 6 of the filed PDF · View the filing
Growth rate next quarter — more than 15% · next quarter
stated conditionally by Umesh Revankar
p. 6
“But we are confident that we'll be able to grow more than 15% at least for next quarter.”
Umesh Revankar, page 6 of the filed PDF · View the filing
New vehicle mix — 30% plus of book · medium term
stated as an aspiration by Umesh Revankar
p. 7
“So definitely, new vehicle book will be around 30% of our book, 30% plus in our book maybe in the medium term.”
Umesh Revankar, page 7 of the filed PDF · View the filing
Gold loan portfolio — double, to around 5% of overall book · next 3 years
stated as an aspiration by Umesh Revankar
p. 7
“So we expect the portfolio to grow double in the next 3 years from around 2.5% of the overall book to around 5% because we feel that there's a very big opportunity for us to grow in the gold.”
Umesh Revankar, page 7 of the filed PDF · View the filing
MSME portfolio share — around 20% of the book
stated as an aspiration by Umesh Revankar
p. 8
“So from around 15% of the portfolio, the MSME will become around 20% of the book.”
Umesh Revankar, page 8 of the filed PDF · View the filing
Cost-to-income ratio
stated firmly by Umesh Revankar
p. 8
“Stable, I should say.”
Umesh Revankar, page 8 of the filed PDF · View the filing
Credit cost — around 2% · near term or medium term
stated firmly by Umesh Revankar
p. 9
“Yes, I think it will hold good, but our -- see, our guidance has been around 2%. So it will remain around that in the near term or even in the medium term.”
Umesh Revankar, page 9 of the filed PDF · View the filing
Branch additions — around 150 branches · FY27
stated firmly by Umesh Revankar
p. 14
“Tentatively around 150 branches.”
Umesh Revankar, page 14 of the filed PDF · View the filing
MSME growth — higher than 18% overall guidance · FY27
stated as an aspiration by Umesh Revankar
p. 14
“MSME growth will be definitely higher than this because we are projecting CV at around 15%.”
Umesh Revankar, page 14 of the filed PDF · View the filing
Construction equipment book — next quarter
stated as an aspiration by Umesh Revankar
p. 15
“So we should start growing that book from next quarter.”
Umesh Revankar, page 15 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said it would wait another quarter before revising growth guidance, expecting at least 15% growth next quarter.
Answered by Umesh Revankar
Asked by Renish Bhuva: Is the company aspiring for 18-20% growth this year given a stronger-than-expected Q1?
p. 6
“We would like to wait for another quarter because the net impact of the deficit in monsoon is a little less known.”
Umesh Revankar, page 6 of the filed PDF · View the filing
Management said fuel prices had not risen steeply, operators passed on costs, and vehicle demand remained strong with no signs of stress.
Answered by Umesh Revankar
Asked by Chintan: What impact is the West Asia war having on capacity utilization and demand?
p. 6
“And the demand for the vehicle remains good because we have not seen any stress or vehicle idling anywhere, and there has been good demand for the vehicle.”
Umesh Revankar, page 6 of the filed PDF · View the filing
Management said current NIM would hold for two quarters but would gradually decline toward 8.5% in the medium term as the new vehicle mix increases.
Answered by Umesh Revankar
Asked by Chintan: How should NIM evolve over the next 3-4 quarters given excess liquidity?
p. 7
“See, immediate 2 quarters, I think the current NIM will hold good because we are utilizing the capital.”
Umesh Revankar, page 7 of the filed PDF · View the filing
Management confirmed liability repayment targets were met and future liquidity use would go toward growth and eventual fresh fund mobilization.
Answered by Parag Sharma
Asked by Kunal Shah: Will excess liquidity now be used mainly for growth rather than debt repayment?
p. 8
“So we'll be looking at business growth only utilization towards more of growth only.”
Parag Sharma, page 8 of the filed PDF · View the filing
Management quantified the NII contribution from surplus capital and said the benefit would gradually subside.
Answered by Sunder Subramanian
Asked by Aditya Vikram: What portion of NIM came from the new capital/surplus funds?
p. 12
“Around INR500 crores of the NII, which is being reflected is out of the past funds.”
Sunder Subramanian, page 12 of the filed PDF · View the filing
Management said the borrowing program was subdued this quarter so no securitization/assignment was done, but this would resume toward quarter-end.
Answered by Parag Sharma
Asked by Bunty Chawla: Why has off-balance-sheet share of AUM been declining and will securitization resume?
p. 13
“Since our overall borrowing program was subdued for the quarter, we have not done transactions of securitization or direct assignment.”
Parag Sharma, page 13 of the filed PDF · View the filing
Management said MSME and gold growth would be faster than CV growth, which was projected around 15%.
Answered by Umesh Revankar
Asked by Pranuj Shah: Will MSME growth outpace the overall 18% AUM growth target?
p. 14
“MSME growth will be definitely higher than this because we are projecting CV at around 15%.”
Umesh Revankar, page 14 of the filed PDF · View the filing
Management said the increase in Stage 3 was marginal and attributed it to seasonal factors rather than deliberate cleanup.
Answered by Umesh Revankar
Asked by Aditya Vikram: Did Stage 3 assets rise faster than usual, indicating faster book cleanup?
p. 15
“If you see the numbers, it is a marginal increase only from 4.58%, it has gone to 4.63% Stage 3.”
Umesh Revankar, page 15 of the filed PDF · View the filing
Risks flagged
Monsoon deficit and El Nino impact on agricultural output and rural income
p. 3
“A big monsoon deficit, a changing monsoon path, inconsistent rainfall could cause problems for agriculture, inflation and overall spending.”
Umesh Revankar, page 3 of the filed PDF · View the filing
West Asia geopolitical crisis affecting fuel prices and input costs
p. 10
“West Asia crisis, even though there were certain challenges, especially in certain industry, which was dependent on the petroleum product as their raw material like plastic and all.”
Umesh Revankar, page 10 of the filed PDF · View the filing
Uncertainty over rabi crop and rural income affecting growth outlook
p. 11
“So ultimately, there is a little uncertainty towards the output and the rural income.”
Umesh Revankar, page 11 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.