Q4 2026 Shriram Finance Ltd Earnings Call Transcript
Key Points
- Shriram Finance Ltd (BOM:511218) reported a strong profit after tax growth of 40.86% in Q4 FY26 compared to Q4 FY25.
- The company's net interest income increased by 15.58% year on year, indicating strong revenue generation.
- Assets under management grew by 14.85% over Q4 FY25, showcasing robust asset growth.
- The company successfully completed a transformative milestone by completing a preferential allotment to MUFG Bank Limited, boosting capital adequacy.
- The cost-to-income ratio improved to 25.32% in Q4 FY26 from 27.65% in Q4 FY25, indicating better operational efficiency.
- India's GDP growth slowed to 7.8% in Q3 FY26, down from 8.4% in the previous quarter, which could impact future growth prospects.
- Retail inflation rose to 3.4% in March 2026, driven by higher food prices, potentially affecting consumer spending.
- The company's gross Stage 3 assets slightly increased to 4.5% in Q4 FY26 from 4.55% in Q4 FY25, indicating some asset quality concerns.
- The rural economy faces risks from potential monsoon shortfalls and elevated agro input costs, which could impact demand.
- The construction equipment segment recorded a degrowth of 16.02% in Q4 FY26, reflecting challenges in that sector.
Ladies and gentlemen, good day, and welcome to the Shriram Finance Limited Q4 FY26 fourth quarter ended March 31, 2026 conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Umesh Revankar, 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 joined the call from western part of the world.
To present our Q4 FY26 earnings call today, I have with me Managing Director and CEO, Parag Sharma; Managing Director, S. Sundar; Joint Managing Director and CFO, Sanjay Kumar; our Investor Relations head. It has been a good fourth quarter year for reserve for Shriram Finance under current circumstances. Let us first look at the broad economic indicators. The India's GDP growth slowed down to 7.8% in the third quarter fiscal 2026 down from 8.4% previous quarter.
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