Shriram Finance Q4 2025 Earnings Call Highlights: Strong AUM Growth Amid Margin Pressure

Shriram Finance Ltd reported a 14.04% YoY disbursement growth, with disbursements reaching INR44,847.93 crores. AUM grew 17.05% to INR263,190.27 crores, and net interest income increased 13.4% YoY to INR6,051.19 crores. Profit after tax rose 9.95% to INR2,139.39 crores, with earnings per share increasing 9.85%. However, net interest margin declined to 8.25% due to excess liquidity, and credit cost increased to 2.07%.

Shriram Finance Ltd. (SFIN) reported robust financial results for the fourth quarter of the fiscal year ending March 2025. The company's disbursements grew by 14.04% year-on-year (YoY) to INR 44,847.93 crores, driven by strong lending activities. The total asset under management (AUM) expanded by 17.05% to INR 263,190.27 crores, reflecting the company's growing loan book.

Net interest income (NII) surged by 13.4% YoY to INR 6,051.19 crores, primarily due to increased disbursements and healthy interest margins. Profit after tax (PAT) rose by 9.95% to INR 2,139.39 crores, with earnings per share (EPS) increasing by 9.85%. However, net interest margin (NIM) declined to 8.25% due to excess liquidity, while credit cost increased to 2.07%.

The company's board will meet on April 25, 2025, to approve the financial results and discuss the final dividend recommendation for the financial year 2024-25. The board will also evaluate the resource mobilization plan for FY 2025-26, including debt securities, offshore bond options, and equity shares.

Shriram Finance Ltd. shares have gained over 4% in the last five trading sessions, reflecting investor confidence in the company's performance. The stock has advanced over 2% in the past month and 7.85% in the last six months. Year-to-date, the company's shares have rallied nearly 20%, while rising over 42% in the last one year.

The company's management will hold a conference call on April 25, 2025, at 7 p.m. to discuss the financial results. The call will feature members from the company's senior management, including Umesh G Revankar (executive vice chairman), YS Chakravarti (managing director and CEO), Parag Sharma (managing director & CFO), S Sunder (joint managing director), and Sanjay K Mundra (executive director).

References:
[1] https://www.ndtvprofit.com/quarterly-earnings/shriram-finance-q4-results-date-dividend-details-earnings-call-schedule-and-more
[2] https://m.economictimes.com/markets/stocks/earnings/shriram-finance-q4-results-standalone-profit-rises-10-yoy-to-rs-2139-crore-co-declares-rs-3-dividend/articleshow/120619741.cms