Debasis Mohapatra
Bengaluru, 28 April 2026
Leading NBFC, Shriram Finance Ltd (SFL) is likely to maintain its growth momentum in the coming quarters though geopolitical uncertainty may create some disruptions.
In a research note, brokerage firm- Axis Capital noted that recent capital infusion would supplement Shriram Finance’s growth momentum in select focus segments going ahead.
“With the capital infusion providing growth capital, we expect SFL to accelerate its growth momentum in select focus segments and deliver a healthy 17% AUM CAGR over FY26-28 period, supported by a largely unchanged product mix,” Axis Capital wrote in a report.
“NIMs (net interest margins) are expected to remain resilient, supported by lower cost of funds, which would be partially offset by a partial pass-on to customers to support higher retention of better-quality customers and a higher share of new vehicles financed,” it noted.
Shriram Finance reported steady performance in Q4 of FY26. The NBFC major’s net profit jumped 41% to Rs 3,014 crore during the March quarter. Its revenue increased 9% to Rs 12,509 crore during this period. The commercial vehicle segment- the biggest segment for the company- posted a 19.5% loan growth during March quarter, while lending for passenger vehicles increased 19%.
In terms asset quality, while gross NPA grew marginally to 4.58% from 4.54% on a quarter-on-quarter basis, net NPA improved to 2.33%, up from 2.38% in the last quarter.
Against the backdrop of geopolitical tensions due to Iran war, fuel prices are likely to be increased in coming days. If that happens, then it may have negative impact on company’s growth prospects.
“Geopolitical uncertainties pose a risk of a fuel price increase. However, the management indicated that in the event of pass-through of fuel costs from transporters to end-users, the impact on credit costs is likely to be limited. That said, a sharp rise in fuel prices, potentially slowing down economic activity, could affect borrower cash flows, thereby dampening SFL’s credit cost outlook,” the report by Axis Capital said.
Moreover, prediction of a weak monsoon this year could affect rural income, leading to low demand for vehicles across the spectrum.
“…Stepping into FY27, the management has indicated muted industry performance across most segments. While growth for SFL will continue to be driven by the used vehicle segment, the management has indicated that tractor demand could remain soft,” the report noted.
Notably, SFL’s management has guided for 18% AUM (asset under management) growth in FY27. PV (personal vehicle) segment is projected to grow more than 20%, while around 15% growth is expected in the CV (commercial vehicle) segment, the management has said. Gold loans are likely to witness a robust 30% AUM growth with MSME loan growing at 13-15% in FY27, according to the management.
