Shriram Finance continues to scale its lending franchise, with strong AUM growth and a significant capital boost from a global banking partner. Business Snapshot (9MFY26) • AUM: ₹2.9 trillion • Portfolio Mix: – Commercial Vehicles: 45.65% – Passenger Vehicles: 21.67% – MSME Loans: 14.08% • Gross Stage-3 Assets: 4.53% • Collection Efficiency: 98.9% (as of December 2025) Strategic Development • MUFG Bank acquired a 20% stake for ₹396 billion • Net worth to exceed ₹1,000 billion post capital infusion • Leverage expected to reduce to ~2.6x from 4.05x Why This Matters The capital infusion significantly strengthens Shriram Finance’s balance sheet, lowers leverage, and improves funding flexibility. Reduced leverage and stronger net worth enhance the company’s ability to expand into relatively lower-risk lending products and improve borrowing costs. Impact Assessment Positive. Strong AUM growth, high collection efficiency, and improved capitalization enhance financial stability and long-term growth visibility. Learning Outcome For NBFCs, asset quality, collection efficiency, and capital adequacy are key indicators of sustainability. Strategic equity partnerships can materially improve leverage, cost of funds, and growth potential.

SHRIRAMFIN

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