1. At a Glance
India’s favorite truck-financing NBFC just dropped ₹2,159 Cr in quarterly net profit like it’s no big deal. With an AUM of ₹2.6 lakh Cr and a stock trading at just 14x earnings, Shriram Finance looks like the quiet uncle who’s secretly rich.
2. Introduction with Hook
Picture a giant rolling down the highway in a 14-wheeler filled with loan documents and diesel fumes. That’s Shriram Finance—India’s largest NBFC for the wheels that keep Bharat moving.
And while fancy fintechs burn VC cash faster than Wi-Fi in a metro, Shriram quietly delivered:
- Q1 Net Profit: ₹2,159 Cr
- ROE: 15.6%
- Div Yield: 1.59%
No hype. Just hardcore lending.
3. Business Model (WTF Do They Even Do?)
Shriram Finance is the desi NBFC equivalent of a Swiss army knife — Truck loans, MSME financing, tractors, gold, working capital, even personal loans. If it moves, grows, or sits idle — they’ll lend on it.
They operate across 1,700+ branches, 800+ rural centers, and partner with ~500 private financiers. It’s like a rural loan mafia, but legal and SEBI-approved.
4. Financials Overview
Q1 FY26 Snapshot:
| Metric | Value (₹ Cr) | YoY Growth |
|---|---|---|
| Revenue | 11,536 | +44% |
| Net Profit | 2,159 | +26% |
| Financing Profit | 3,073 | +29% |
| EPS | ₹11.48 | Rock solid |
Margins hovering near 27%, just where NBFCs start popping champagne. Financing profit is compounding like your uncle’s LIC bonus.
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹611 |
| P/E | 14.0x |
| Book Value | ₹300 |
| P/B | 2.0x |
Fair Value Range:
- P/E Basis (15–18x FY25 EPS ₹51.5): ₹775 – ₹930
- P/B Basis (2.2–2.5x Book): ₹660 – ₹750
Translation: It’s not undervalued. It’s just not bragging about being undervalued.
6. What’s Cooking – News, Triggers, Drama
Recent Drama Highlights:
- Acquired SOIPL for ₹50 Cr to enter Primary Dealership biz
- Planning ₹500 Cr capital infusion
- Credit Ratings upgraded by Fitch, S&P, Moody’s — basically a triple pat on the back
- Q1 Result: Revenue & PAT both up strong
- 150% Final Dividend announced
It’s like watching a conservative banker join a tech startup—bold but balanced.
7. Balance Sheet
| Item | Mar 2025 (₹ Cr) |
|---|---|
| Equity Capital | 376 |
| Reserves | 56,094 |
| Borrowings | 234,197 |
| Other Liabilities | 3,055 |
| Total Assets | 2,93,722 |
- Leverage? Yes, but healthy.
- Net Worth: ₹56,470 Cr
- Borrowings up, but so is AUM — no red flags yet.
8. Cash Flow – Sab Number Game Hai
| Year | Ops (₹ Cr) | Invest (₹ Cr) | Finance (₹ Cr) | Net Cash |
|---|---|---|---|---|
| FY23 | -17,625 | +5 | +11,820 | -730 |
| FY24 | -31,118 | -427 | +27,626 | -3,919 |
| FY25 | -43,652 | +3,630 | +44,521 | +4,499 |
Looks scary, but NBFCs run this way. Massive loan book = massive cash burn = massive funding inflows. If you don’t understand this, don’t invest in lenders.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 15.6% |
| ROCE | 11.0% |
| P/E | 14x |
| Dividend Yield | 1.59% |
| Debt/Equity | ~4.15 |
Solid efficiency. Sustainable model. Low P/E. Pretty good for a truck-loving lender.
10. P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | Profit (₹ Cr) | EPS (₹) |
|---|---|---|---|
| FY23 | 30,492 | 6,020 | 32.1 |
| FY24 | 34,973 | 7,399 | 39.2 |
| FY25 | 43,941 | 9,576 | 50.8 |
| TTM | 43,778 | 9,705 | 51.5 |
CAGR on profits over 5 years? 27%. In NBFC land, that’s basically bench-pressing a tractor.
11. Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Bajaj Finance | 73,107 | 17,425 | 32.6 |
| Cholamandalam | 25,845 | 4,262 | 29.7 |
| Muthoot Finance | 20,214 | 5,332 | 20.0 |
| Shriram Finance | 43,778 | 9,705 | 14.0 |
Value pick alert. Others are flying private. Shriram is chilling in economy with the same view.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar ’23 | Jun ’25 |
|---|---|---|
| Promoters | 25.48% | 25.39% |
| FIIs | 55.36% | 52.61% |
| DIIs | 14.66% | 16.32% |
| Public | 4.49% | 5.64% |
- Promoters: Steady
- FIIs: Still dominant (over 50%)
- Public shareholding is climbing… retail finally waking up?
13. EduInvesting Verdict™
Shriram Finance is the unsung heavyweight of NBFCs—less limelight than Bajaj, more return than most. Solid earnings, consistent growth, and now expanding into new verticals like primary dealership.
The market is pricing it like a used truck. But under the hood? Twin turbocharged balance sheet and a five-year growth engine.
“Built like a CV. Runs like a compounding machine.”
Metadata:
Written by EduInvesting Team | 25 July 2025
Tags: Shriram Finance Ltd, NBFC, Truck Loans, EduInvesting Premium, Credit Ratings, Primary Dealership
