Shriram Finance Q2 FY27 profit up 60% to ₹3,680 crore

Shriram Finance Limited (NSE: SHRIRAMFIN)

reported Q2 FY27 profit after tax of ₹3,680 crore, up 60% year on year. Net interest income rose 40% to ₹8,410 crore. The cost-to-income ratio improved to 22.9% as operating costs stayed under control. Profit grew faster than interest income, which suggests the gain came partly from cost control and not only from a bigger loan book. The data does not break out provisions, so credit costs are the number I would check in the full filing. The weak spot is guidance. Management cut FY27 AUM growth to 15% to 17%, from 18% earlier. That is a trim of 100 to 300 basis points. The reasons given are a monsoon deficit and global macro volatility. The company also declared an interim dividend of ₹6.50 per share on October 23, 2026. That is 325% on the ₹2 face value. My view: earnings are strong and the guidance cut looks like slower pacing, not a broken thesis. Management is choosing asset quality over volume. For a commercial vehicle and retail lender, slower growth with a 22.9% cost ratio can still support profit. The risk is the valuation multiple, which may stay range-bound while the market digests lower growth. What I am watching: Cost-to-income staying below 23%, commercial vehicle finance disbursement trends, and rural demand after the monsoon. Uneven rainfall and West Asia tensions hitting freight activity are the main risks. Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations.