Shriram Finance Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Shriram Finance Ltd filed with BSE on 04 May 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 Q4 FY26 disbursement growth of 14.91% year-on-year, AUM growth of 14.85% year-on-year to Rs 3,02,273.75 crores, and profit after tax growth of 40.86% year-on-year to Rs 3,013.57 crores. Net interest margin was 8.61% compared to 8.25% in Q4 FY25, and the cost-to-income ratio improved to 25.32%. The company completed a preferential allotment to MUFG Bank Limited for a 20% stake and the Board recommended a final dividend of Rs 6 per equity share.
Numbers mentioned
Disbursement: INR50,952.30 crores (Q4 FY26)
p. 5
“Our disbursement in Q4 FY '26 this year aggregated to INR50,952.30 crores versus INR44,340.57 crores in Q4 FY '25.”
Parag Sharma, page 5 of the filed PDF · View the filing
Assets under management: INR3,02,273.75 crores (as on 31st March 2026)
p. 5
“Our AUM stood at INR3,02,273.75 crores as against INR2,63,190.27 crores a year ago and INR2,91,709.03 crores in Q3 FY '26.”
Parag Sharma, page 5 of the filed PDF · View the filing
Net interest income: INR6,994.08 crores (Q4 FY26)
p. 5
“We earned a net interest income of INR6,994.08 crores in Q4 FY '26 this year as compared to INR6,051.19 crores in Q4 FY '25.”
Parag Sharma, page 5 of the filed PDF · View the filing
Net interest margin: 8.61% (Q4 FY26)
p. 5
“Our net interest margin in Q4 FY '26 was at 8.61% as against 8.25% in Q4 FY '25 and 8.58% in Q3 FY '26.”
Parag Sharma, page 5 of the filed PDF · View the filing
Profit after tax: INR3,013.57 crores (Q4 FY26)
p. 5
“We registered PAT of INR3,013.57 crores for Q4 FY '26 as compared to INR2,139.39 crores in Q4 FY '25 and INR2,521.67 crores in Q3 FY '26.”
Parag Sharma, page 5 of the filed PDF · View the filing
Earnings per share: INR16.02 (Q4 FY26)
p. 5
“Our earnings per share for the quarter stood at INR16.02 as against INR11.38 in Q4 FY '25 and INR13.40 in Q3 FY '26.”
Parag Sharma, page 5 of the filed PDF · View the filing
Gross Stage 3: 4.58% (Q4 FY26)
p. 5
“Our asset quality gross Stage 3 in Q4 FY '26 stood at 4.58% and net Stage 3 at 2.33% as against 4.55% gross and 2.64% net in Q4 FY '25 and was 4.54% gross and 2.38% net in Q3 FY '26.”
Parag Sharma, page 5 of the filed PDF · View the filing
Credit cost on total assets: 1.68% (FY26)
p. 5
“Our credit cost on total assets for FY '26 stood at 1.68% as against 2.07% for Q4 FY '25 and 1.62% for Q3 FY '26.”
Parag Sharma, page 5 of the filed PDF · View the filing
Cost-to-income ratio: 25.32% (Q4 FY26)
p. 5
“Our cost-to-income ratio was 25.32% in Q4 FY '26 as against 27.65% recorded in Q4 FY '25.”
Parag Sharma, page 5 of the filed PDF · View the filing
Cost of liabilities: 8.59% (Q4 FY26)
p. 5
“The cost of liabilities have marginally come down compared to previous quarter from 8.69% to 8.59%.”
Parag Sharma, page 5 of the filed PDF · View the filing
Liquidity coverage ratio: 323.17% (Q4 FY26)
p. 5
“The liquidity coverage ratio for the company is at 323.17%, which was 335% in the December quarter.”
Parag Sharma, page 5 of the filed PDF · View the filing
Leverage ratio: 3.82 times (Q4 FY26)
p. 5
“The leverage ratio is at 3.82 times and that has slightly come down from the December quarter.”
Parag Sharma, page 5 of the filed PDF · View the filing
Capital adequacy ratio: 20.4% (post equity, as of call date)
p. 5
“The capital adequacy ratio post this equity as of now is 20.4% and post-equity infusion will be 34%.”
Parag Sharma, page 5 of the filed PDF · View the filing
Final dividend: INR6 per equity share (FY26)
p. 4
“The Board of Directors have recommended a final dividend of INR6 per equity share for the face value of INR2 each fully paid, that is 300% for financial year '25-'26.”
Umesh G. Revankar, page 4 of the filed PDF · View the filing
MUFG preferential allotment: INR47,11,21,055 equity shares at INR840.93 per share (April 8, 2026)
p. 4
“the company achieved a transformative milestone by successfully completing preferential allotment of INR47,11,21,055 fully paid up equity shares of face value of INR2 each to MUFG Bank Limited at an issue price of INR840.93 per share.”
Umesh G. Revankar, page 4 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 growth — 18% · FY27
stated firmly by Umesh G. Revankar
p. 7
“We have projected and budgeted 18%, and we'll grow at 18%.”
Umesh G. Revankar, page 7 of the filed PDF · View the filing
Net interest margin — 8.5% · FY27 budget
stated firmly by Umesh G. Revankar
p. 12
“Interest margin, we have budgeted 8.5 only.”
Umesh G. Revankar, page 12 of the filed PDF · View the filing
Cost-to-income ratio — 26% to 27% · long-term
stated as an aspiration by S. Sunder
p. 7
“we should be in the long-term range, it should be around between 26% to 27%.”
S. Sunder, page 7 of the filed PDF · View the filing
MSME growth — 13% to 15% · FY27
stated conditionally by Umesh G. Revankar
p. 13
“We'll be looking at around 13% to 15% growth. But as situation improves, we'll increase our lending.”
Umesh G. Revankar, page 13 of the filed PDF · View the filing
Passenger vehicle growth — more than 20% · this financial year
stated firmly by Umesh G. Revankar
p. 14
“we'll be growing strongest in this financial year. You will be able to see more than 20% growth in passenger vehicle.”
Umesh G. Revankar, page 14 of the filed PDF · View the filing
CV growth — 15% to 18% · FY27
stated conditionally by Umesh G. Revankar
p. 15
“See, in CV, it will be around 15% to 18% overall growth.”
Umesh G. Revankar, page 15 of the filed PDF · View the filing
Employee headcount — closer to 80,000 · next couple of quarters
stated firmly by S. Sunder
p. 7
“going forward, we again want to increase it closer to 80,000 in the next couple of quarters.”
S. Sunder, page 7 of the filed PDF · View the filing
Credit cost guidance review — after Q1 FY27
stated conditionally by Umesh G. Revankar
p. 10
“we will be revisiting the number after the first quarter result, looking at the market condition and the challenges we are facing.”
Umesh G. Revankar, page 10 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 company growth will be 18% even though overall industry sales growth is expected to be muted
Answered by Umesh G. Revankar
Asked by Renish: Whether FY27 AUM growth guidance of 18% is achievable given muted sales growth expectations
p. 7
“I'm not talking about companies growth muted. I'm talking about sales number is muted, but we will be growing at 18%.”
Umesh G. Revankar, page 7 of the filed PDF · View the filing
Decline attributed to absence of one-off labour code cost, lower headcount growth, reduced branding spend, and a change in accounting estimate for DSA payouts
Answered by S. Sunder
Asked by Shreepal Doshi: What explains the sharp decline in opex versus last quarter
p. 7
“there has been a dip of around INR50 crores on that account.”
S. Sunder, page 7 of the filed PDF · View the filing
Management said it cannot build a model until fuel prices actually rise, since cost increases are typically passed on to customers
Answered by Umesh G. Revankar
Asked by Shreepal Doshi: Whether higher fuel prices and geopolitical tension could lead to higher credit cost provisioning for FY27
p. 8
“Unless the fuel price goes up and to what extent it goes up, we can't build a model on what is the likely credit cost”
Umesh G. Revankar, page 8 of the filed PDF · View the filing
Management declined to speculate on future stake changes so soon after the deal closed
Answered by Umesh G. Revankar
Asked by Sanket Chheda: Whether MUFG could increase its stake before the 24-month lock-in period ends
p. 9
“You have to understand, it's not even one month.”
Umesh G. Revankar, page 9 of the filed PDF · View the filing
Management confirmed a conservative NIM budget of 8.5%, with benefits to be shared between customers and profitability
Answered by Umesh G. Revankar
Asked by Piran Engineer: What NIM has been budgeted for FY27 given expected cost of funds benefits
p. 12
“As and when the cost of benefit comes, we'll keep doing it. The Q-on-Q it will vary.”
Umesh G. Revankar, page 12 of the filed PDF · View the filing
New vehicle proportion is currently around 15-20% of disbursements and may increase by another 5-10 percentage points over the next two quarters
Answered by Umesh G. Revankar
Asked by Kunal Shah: What proportion of disbursements is now new vehicles and how will it scale
p. 15
“it's around must be around 15% now on yields 15% to 20% now. But it may not go to 30%, 35% of the proportion.”
Umesh G. Revankar, page 15 of the filed PDF · View the filing
Management said impact depends on whether the economy slows down, and any stress would likely show up only after November-December, not immediately
Answered by Umesh G. Revankar
Asked by Kunal Shah: Whether the below-average monsoon and geopolitical conflict pose a risk to credit cost guidance
p. 16
“this also will be reflected mostly after November, December, not immediately.”
Umesh G. Revankar, page 16 of the filed PDF · View the filing
Risks flagged
Potential monsoon shortfall and elevated agro input costs weighing on rural income and demand
p. 3
“India's rural economy is facing dual threat in 2026 from potential monsoon shortfall and elevated agro input costs driven by global conflict, both of which could weigh on agriculture output and farmers' income, rural demand and food inflation.”
Umesh G. Revankar, page 3 of the filed PDF · View the filing
Rising oil prices and geopolitical tension impacting economic growth
p. 3
“Despite the current volatility, the IMF have projected the growth rate of 6.5% for FY '27.”
Umesh G. Revankar, page 3 of the filed PDF · View the filing
Higher fuel prices potentially feeding into inflation and impacting consumption and manufacturing
p. 10
“if the inflation impacts the consumption and the manufacturing, what will be the ultimate impact on the transporters.”
Umesh G. Revankar, page 10 of the filed PDF · View the filing
Supply chain disruptions in raw material delays linked to West Asia conflict
p. 11
“there are delays in getting raw materials. This is a challenge of supply”
Umesh G. Revankar, page 11 of the filed PDF · View the filing
Slowdown in MSME segment due to U.S. tariff and West Asia conflict leading to cautious growth approach
p. 13
“We'll be cautious, because, one, we slowed down because of the U.S. tariff, now because of West Asia.”
Umesh G. Revankar, page 13 of the filed PDF · View the filing
Volatility in oil prices making credit cost prediction difficult
p. 16
“if you have seen last quarter, last week, Friday, the Brent price came down to 85. By Monday morning, it crossed 100.”
Umesh G. Revankar, page 16 of the filed PDF · View the filing
Economic closure or reduced vehicle engagement could impact credit cost if fuel price rises are not absorbed by continued growth
p. 16
“if the economies closed down, then only we have a challenge.”
Umesh G. Revankar, page 16 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.