In Week of Mar 28, 2026, Shriram Finance Ltd (Finance & Investments - CV Finance) is outperforming Nifty 500 with +5.7% relative strength. Fundamentals: Weak. On a 12-week streak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 (ended December 31, 2025) earnings • Updated Feb 22, 2026
What: Funding cost reduction from MUFG partnership and rating upgrades expected to lower borrowing costs by 100bps over two years
Impact: +₹500 Cr revenue
“S. Sunder: 'With the partnership of MUFG and improved credit ratings, we expect borrowing costs to decrease by around 100 basis points over two years'”
What: GNPA improved 84bps YoY to 4.54%, NNPA improved 30bps YoY to 2.38%, trend expected to continue
Impact: +₹400 Cr revenue
“Management: 'Gross Stage 3 in Q3 FY26 stood at 4.54% and net Stage 3 at 2.38%. These numbers show an improvement over the corresponding period of 5.38% gross and 2.68% net in Q3 FY25'”
What: ₹40,000 crore equity raise to support disbursements of ₹45,000-50,000 crore quarterly
Impact: +₹1200 Cr revenue
“Umesh Revankar: 'The equity infusion of around ₹40,000 crores will be quickly utilized, as our quarterly disbursement is between ₹45,000 to ₹50,000 crores'”
Earnings deceleration risks from management commentary
Trigger: If compensation expenses rise faster than revenue growth
Impact: -10 bps margin impact
Management view: S. Sunder: 'The cost-to-income ratio stood at 29.66% in Q3 FY26, up from 28.59% in Q3 FY25, partly due to increased gratuity and long-term compensation expenses due to the new labor code'.
Monitor: C/I ratio
Trigger: If infrastructure spending remains subdued
Impact: -5 bps margin impact
Management view: Management: 'We are maintaining a cautious outlook on new HCV sales pending increased infrastructure spending.'
Monitor: HCV disbursement growth
Key quotes from recent conference calls
“We expect to sustain margins around 8.5% and expect ROE and ROA to improve. — Parag Sharma”
“We are not seeing significant stress in any portfolio and expect improvements as market conditions stabilize. — Umesh Revankar”
“We expect continued growth in our core segments with strong demand in LCV and SCV segments. — Parag Sharma”
“The equity infusion of around ₹40,000 crores will be quickly utilized, as our quarterly disbursement is between ₹45,000 to ₹50,000 crores. — Umesh Revankar”
Forward-looking targets from management for FY26
Implied PAT Growth
15%
Credit Growth Target
15%
NIM Guidance
8.5%
Key Milestones
• Sustain NIM around 8.5%
• Continue improving asset quality
• Deploy ₹40,000 crore equity infusion
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +14% | +32% | Decelerating |
| PAT (Net Profit) | -22% | +52% | Inflection Down |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Feb 22, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Shriram Finance Ltd's latest quarterly results (Dec 2025) show
Shriram Finance Ltd's profit is declining with an inflecting downward trend.
Shriram Finance Ltd's revenue growth trend is decelerating.
Shriram Finance Ltd's asset quality trend is improving.
Shriram Finance Ltd's long-term compounding rates
Shriram Finance Ltd's earnings growth is inflecting downward with strong momentum on a sequential basis.
Shriram Finance Ltd's trailing twelve month (TTM) performance
Shriram Finance Ltd appears overvalued based on our fair value analysis.
Shriram Finance Ltd's current PE ratio is 18.6x.
Shriram Finance Ltd's current PE is 18.6x.
Shriram Finance Ltd's price-to-book ratio is 2.8x.
Shriram Finance Ltd is rated Weak with a fundamental score of 28.36/100. This score is calculated from objective financial metrics
Shriram Finance Ltd has a debt-to-equity ratio of N/A.
Shriram Finance Ltd's return ratios over recent years
Shriram Finance Ltd's operating cash flow is negative (FY2025).
Shriram Finance Ltd's current dividend yield is 1.10%.
Shriram Finance Ltd's shareholding pattern (Dec 2025)
Shriram Finance Ltd's promoter holding has decreased recently.
Shriram Finance Ltd has been outperforming Nifty 500 for 12 consecutive weeks, indicating strong sustained outperformance.
Shriram Finance Ltd is an established outperformer with 12 weeks of consecutive Nifty 500 outperformance.
Shriram Finance Ltd has 3 key growth catalysts identified from recent earnings analysis
Shriram Finance Ltd has 2 key risks worth monitoring
In Q3 FY26 (ended December 31, 2025), Shriram Finance Ltd's management highlighted
Shriram Finance Ltd's management has provided the following forward guidance for FY26
Based on quantitative research signals, here is why Shriram Finance Ltd may be worth studying
Shriram Finance Ltd investment thesis summary:
Shriram Finance Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
