Shriram Finance Q1 FY27: PAT Up 60%, AAA Upgrade, 13% Drop

Shriram Finance Limited reported Q1 FY27 results for the June 2026 quarter on 24 July. Q1 FY27 numbers (consolidated): NII: Rs 8,056 crore, up 33.7%; total income Rs 13,413 crore, up 16.2% PAT: Rs 3,453 crore, up 59.9% YoY from Rs 2,159 crore; beat Rs 3,137 crore estimate EPS Rs 14.83; cost to income 25.48% vs 29.29% AUM Rs 3,13,798 crore, up 15.3%; disbursements Rs 49,975 crore, up 19.5% Gross Stage 3: 4.53% vs 5.39% YoY; net Stage 3: 2.57% vs 2.71% The Rs 39,618 crore MUFG equity injection on 8 April triggered all four agencies to upgrade to AAA; capital adequacy rose to 34%. AGM on 10 July confirmed MUFG nominee directors; FY26 total dividend Rs 10.80. Since then the RBI issued draft NBFC norms on revolving credit; restructuring risk exists if implemented as drafted, but the norms remain pre-consultation. Shriram Finance [][***** shares trade at Rs 964.94 (16 Sep 2026, 02:25 PM IST), down 13.2 percent in a month, up 64.7 percent in a year. P/E 17.1; P/B 2.76; sector P/E 19.75. My view: Q1 was a 10 percent PAT beat with improving quality, 34 percent capital adequacy and NII up 34 percent. The 13 percent drop is regulatory fear, not a business fact; the risk is real but not yet measured. At 17.1x, 2.76x book, below sector, with AAA funding costs about to lower borrowing costs over two to four quarters, patient money's entry on a regulatory overhang. Accumulate in the Rs 955 to 980 zone; invalidation below Rs 940. Levels: Rs 955 to 960 the floor; Rs 1,055 to 1,073 the Ichimoku cloud resistance, per RA Dhwani Patel; Rs 1,138 the high. Disclosure: Vijay Kumar Gupta, SEBI Registered Research Analyst, INH000020226, Vijay Gupta Advisory. SEBI registration and NISM certification do not guarantee performance or assure returns. Securities markets are subject to market risks. No holdings in the subject company.