$SHRIRAMFIN Shriram Finance – Market Leader in Retail Lending with Strong Earnings Growth

$SHRIRAMFIN Shriram Finance is one of India’s largest retail-focused NBFCs, with leadership in commercial vehicle finance, MSME lending, passenger vehicle loans, two-wheeler finance, and gold loans. The company benefits from its extensive distribution network, deep rural and semi-urban presence, and decades of experience in serving underserved borrowers. Following the merger of Shriram Transport Finance and Shriram City Union Finance, the company has achieved greater scale, product diversification, and operational efficiencies. Rising credit demand, improving asset quality, and strong collection efficiency continue to support sustainable growth. Key Financial Highlights • FY26 Assets Under Management (AUM) crossed approximately ₹2.7 lakh crore, reflecting strong loan growth. • FY26 net profit exceeded ₹9,500 crore, driven by healthy credit expansion and stable asset quality. • Loan book growth remained strong across commercial vehicles, MSME, and personal lending segments. • Gross and Net NPA levels continue to improve, supported by strong recovery and collection mechanisms. • Return on Assets (RoA) and Return on Equity (RoE) remain among the strongest in the NBFC sector. • Well-diversified funding profile with access to banks, bonds, and public deposits. Investment Rationale • Market leader in commercial vehicle financing with a strong competitive moat. • Large rural and semi-urban franchise provides access to underpenetrated credit markets. • Diversified lending portfolio reduces dependence on any single segment. • Strong earnings visibility supported by rising credit demand and economic growth. • Improving asset quality and operating efficiency enhance profitability. • Attractive valuation relative to growth prospects and return ratios.