Shriram Finance Earnings Surge as Profitability Expands Sharply
The NBFC reported a 60% jump in quarterly profit, with net profit margin reaching a multi-quarter high of 25.8%.
Shriram Finance's Q1 FY27 earnings show robust growth, with profit surging 59.9% year-on-year. Revenue grew 16.2%, while net profit margin expanded significantly.
Shriram Finance has kicked off the new fiscal year with a powerful earnings beat, delivering robust profit growth that far outpaced its revenue increase. The company's net profit margin expanded sharply, indicating strong operating leverage and improved profitability.
Revenue for the quarter ended June 2026 stood at ₹13,400 crore, a healthy 16.2% increase from the same period last year. Profit after tax surged an impressive 59.9% year-on-year to ₹3,453 crore. This performance was not just a one-off annual jump; both revenue and profit also grew sequentially from the previous quarter, by 7.1% and 14.3% respectively.
The most striking development is the expansion in net profit margin, which rose 710 basis points year-on-year to reach 25.8%. This marks a clear multi-quarter trend of improving profitability, as shown in the table below.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 13,400.43YoY +16% | 12,513.43 | 11,536.32 |
| Profit (₹ Cr) | 3,452.77YoY +60% | 3,020.95 | 2,159.39 |
| Net Profit Margin (%) | 25.8YoY +38% | 24.1 | 18.7 |
Key Points
- The trailing-twelve-month (TTM) net profit margin stands at 22.6%, showing the company's sustained profitability improvement over a longer period.
- The stock has delivered strong returns, gaining 82% over the past year.
- The company trades at a price-to-earnings (P/E) ratio of 16.4, which is at a 17.5% discount to the industry average P/E of 19.8.
The latest results demonstrate that Shriram Finance is effectively converting its revenue growth into even stronger bottom-line performance, setting a high benchmark for the rest of FY27.
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· SHRIRAMFIN
(BSE)
ISIN: INE721A01047
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