The company posted a 16% YoY jump in net interest income (NII) to Rs 6,994 crore in Q4 FY26, up from Rs 6,051 crore in the corresponding quarter of the previous financial year. The earnings per share (EPS) increased by 41% to Rs 16.02 during the quarter under review, while total assets under management (AUM) increased 15% to Rs 3,02,274 crore at the end of FY26.
Along with the Q4 results, the company announced a final dividend of Rs 6 per share for the financial year ended March 31, 2026. The record date to determine the eligibility of shareholders to receive the payment has been set for July 3.
Should you buy, sell or hold Shriram Finance shares?
Nomura on Shriram Finance
Nomura noted that the company’s 41% growth in net profit beat its estimate by 8%, driven by lower-than-expected opex (reclassification of fee expense of the two-wheeler segment) and credit costs. It added that the 15% AUM growth for FY26 was primarily driven by commercial vehicle (CV) and passenger vehicle (PV), with both segments recording 19% YoY growth.
Given the headwind of US tariffs, the growth rate remained slow in the MSME segment (just 10% YoY growth in loans), the international brokerage highlighted, adding that gold loans picked up pace with 37% YoY growth.
“Management highlighted that any fuel price hike could drag the operating costs for transporters, reduce overall demand, and stoke inflation. Tepid monsoon predictions and challenges in some industrial belts are also keeping management cautious, although the current ground reality appears relatively stable. Thus, management clarified that while medium-term loan growth guidance remains at 18%, given the headwinds, it is looking at 15-18% y-y loan growth in FY27E,” it said.Nomura noted that vehicle financiers may face multiple headwinds in FY27, but Shriram Finance’s spread or margin expansion should make it relatively better off. The international brokerage trimmed its loan growth estimates by 16.4% for FY27 and 18% over FY28-29. “Lower opex guidance for FY27F leads us to lift our net profit estimate by 5%,” it added, while maintaining a ‘Buy’ rating and target price of Rs 1,200 per share for the stock. The target price implies an upside potential of nearly 19% from the stock’s previous closing price of Rs 1,011.30 apiece on NSE.
JM Financial on Shriram Finance
JM Financial noted that Shriram Finance reported a mixed quarter. “SHFL’s granular and diversified lending franchise – supported by a healthy secured portfolio mix – should continue to deliver resilient growth and profitability in our view,” it said.
The domestic brokerage added that the recent strategic equity infusion by MUFG further strengthens Shriram Finance’s balance sheet and provides incremental room for growth. While it continues to watch out for emerging stress in the PV/MSME/CV segments amid the geopolitical uncertainty, JM Financial maintained its ‘Buy’ rating on the stock and increased its target price by nearly 7% to Rs 1,175 apiece. This implies an upside potential of more than 16% from the stock’s previous closing price.
Motilal Oswal on Shriram Finance
Motilal Oswal Financial Services noted that Shriram Finance delivered a strong FY26 performance with healthy AUM and earnings growth, stable asset quality, and controlled operating costs. Growth visibility remains reasonably robust across key segments, even though risks to growth from macro sensitivity (impact on consumption and economic growth from the West Asia conflict) persist, it added.
The domestic brokerage expects the company to deliver a 17% and 26% CAGR in AUM and net profit, respectively, over FY26-28. It reiterated its ‘Buy’ call on the stock with a target price of Rs 1,200 apiece, implying an upside potential of nearly 19% from the stock’s previous closing price.
Shriram Finance share price
Shares of Shriram Finance dropped nearly 4% to trade at Rs 971.35 apiece on Monday morning. The shares have declined over 6% in one week, but gained over 8% in one month. Overall, the stock is down 4% so far in 2026.
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In the longer term, Shriram Finance shares jumped more than 49% in one year, 248% in three years and 269% in five years.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)