Q1 2026 Shriram Finance Ltd Earnings Call Transcript
Key Points
- Shriram Finance Ltd (BOM:511218) reported a disbursement growth of 13.01% year-on-year, with total disbursements reaching INR41,816.75 crore in Q1 FY26.
- The company's asset under management (AUM) grew by 16.62% over Q1 FY25, reaching INR272,249.01 crore.
- Net interest income increased by 12.55% year-on-year, amounting to INR6,026.43 crore in Q1 FY26.
- Profit after tax grew by 8.84% year-on-year, reaching INR2,155.73 crore for Q1 FY26.
- The company maintained a strong liquidity coverage ratio of 268.74%, ensuring robust financial stability.
- Net interest margin declined to 8.11% from 8.79% in Q1 FY25, indicating a decrease in profitability from interest-earning activities.
- The cost-income ratio increased to 29.29% in Q1 FY26 from 27.45% in Q1 FY25, reflecting higher operational costs.
- There was a 40 basis point increase in GS2 assets, attributed to early monsoon disruptions, raising concerns about asset quality.
- The company's leverage remained high at 4.15 times, indicating significant reliance on borrowed funds.
- The liquidity position, while strong, is expected to be reduced from 5 months to 3 months of liability coverage, which may impact future borrowing strategies.
Ladies and gentlemen, good day and welcome to Shriram Finance Limited Q1 FY25, '26 results earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Umesh G Rawanker, Executive Vice Chairman, Shriram Finance Limited. Thank you. And over to you, sir?
Yes. Thank you. Good evening, friends from India and Asia, and warm welcome to all of you. Greetings also to those who have joined the call from western part of the world.
To present our Q1 FY26 earnings call today, I have with me our Managing Director and CEO, Mr. Chakravarti, Managing Director and CFO; Mr. Parag Sharma; S. Sunder, Joint Managing Director; and Sanjay Kumar Mundra, who's our Investor Relationship ahead.
It has been a good first quarter for the year for Shriram Finance under current circumstances. Let us first look at broad economic indicator that has a direct or indirect impact on our business.
First is the GDP. GDP for
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
