Shriram Finance Executive Vice Chairman Umesh Revankar
Shriram Finance is expecting 15 per cent year-on-year (y-o-y) growth in its assets under management (AUM) in FY26, Executive Vice-Chairman Umesh Revankar told businessline in an interaction. The pace of growth for the non-banking finance company (NBFC) major is slower in the current fiscal than that logged in FY25– in line with other industry players.
“We have given guidance of 15 per cent AUM growth for the full year. That is something which we feel is maintainable as we grew our AUM by 16 per cent in Q1 FY26. We don’t have plans to enter new lending segments as we have covered almost all segments in our existing product suite. We prefer to be in asset-backed lending and don’t prefer unsecured lending,” said Revankar.
Shriram Finance’s overall AUM stood at ₹2.72 lakh crore as on June-end. Commercial vehicle and passenger vehicle loans contribute over 65 per cent of the NBFC’s total AUM.
Liabilities, check
Revankar attributed the slower pace of growth in FY26 to broader economic slowdown, amid volatile geo-political environment. The NBFC reported 9 per cent y-o-y growth in net profit, at ₹2,156 crore, for the quarter that ended June.
The NBFC is also expecting 10-15 basis point (bps) improvement in its gross stage 3, or bad loan ratio, by FY26 end, Revankar said. Its gross and net stage 3 asset ratio stood at 4.53 per cent and 2.57 per cent in Q1 FY26 as against 4.55 per cent and 2.64 per cent in previous quarter, respectively.
Further, while the NBFC is aiming to enhance its net interest margin from 8.11 per cent in Q1, improvement will happen gradually as only 15 per cent of the NBFC’s liabilities book is floating and 85 per cent is fixed, which takes considerable period to re-price.
Published on July 30, 2025