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Shriram Finance rises 3% on Q1 results; Should you buy, sell or hold?
At 10:05 AM, Shriram Finance's share price was trading 3.52 per cent higher at ₹637.50 per share on the NSE. In comparison, NSE Nifty50 was down 0.07 per cent at 24,820 levels. The market capitalisation of the company stood at ₹1.19 trillion.
Shriram Finance Q1 results
Shriram Finance's standalone net interest income for the first quarter ended June 30, 2025, rose 12.55 per cent to ₹6,026.43 crore compared to ₹5,354.47 crore in the year-ago period. The company's profit after tax (PAT) increased by 8.84 per cent to ₹2,155.73 crore as against ₹1,980.59 crore recorded in the corresponding quarter of the previous year. It reported earnings per share of ₹11.46, up 8.73 per cent from ₹10.54 in Q1FY25.
Shriram Finance Q1 results analysis: JM Financial
According to analysts at JM Financial, Shriram Finance's well-diversified and predominantly secured product portfolio continues to deliver strong growth and profitability post-merger. However, citing the near-term pressure on net interest margins NIMs, the brokerage revised its FY26 NIM estimate downward by 34 basis points (bps), leading to a 3 per cent to 5 per cent cut in EPS estimates for FY26–28E.
"We now build in average RoA/RoE of 3 per cent/16 per cent over FY26–27E and maintain our 'Buy' rating with a revised target price of ₹730, valuing the stock at 1.9x FY27E BVPS," the brokerage said.
ICICI Securities
According to ICICI Securities, the company's core operating performance in the June 2025 quarter remained strong with NII growth at 4 per cent Q-o-Q/10 per cent Y-o-Y and a sequential easing in credit cost to 1.9 per cent compared to 2.4 per cent Q-o-Q.
"Amid a challenging operating environment, especially in certain segments such as MSME, entry-level PV and used CV, credit cost moderation in Q1FY26 reflects its business resiliency and risk management," the brokerage said in a note. It further highlighted management commentary that an uptick in early buckets (Stage-2 assets) is transitory (cashflow mismatch at the borrower level is due to seasonality and not stress); hence, it expects asset quality (mainly Stage-3 assets) to remain strong in FY26.
ICICI Securities has maintained a 'Hold' on Shriram Finance with an unchanged target of ₹640.
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