Shriram Finance: steady earnings, cleaner book, positive stock reaction

shares rose about 6% intraday after reporting Q2FY26 consolidated net profit of ₹2,314 crore, up 7% YoY, with total income at ₹11,921 crore and interest income at ₹11,551 crore, reflecting sustained growth despite higher operating expenses. Asset quality improved as gross NPA fell to 4.57% from 5.32% a year ago and net NPA to 2.49% from 2.64%, supporting the earnings print alongside stable credit costs near 2% of AUM. Brokerages turned incrementally constructive: Nuvama raised its target to ₹870 with a Buy citing lower credit costs and improving margins; Elara moved to ₹801 with Accumulate, highlighting AUM growth to ₹2.81 lakh crore and better cost-to-income; others flagged diversification and rural reach as tailwinds.​ What to watch next * NIM trajectory versus funding cost normalization and competitive pressures in CV/MSME lending.​ * Disbursement momentum across farm, PV, CV amid infra softness in construction equipment, and any signs of two-wheeler recovery.​ * Credit cost discipline and Stage-2/3 trends through H2FY26 as growth re-accelerates and monsoon-linked rural demand plays out. Source: The Economic Times No Recommendations