Sundaram Finance Q2 FY26 | The 71-Year-Old NBFC That Still Drives Like a New Car (₹2,386 Cr revenue, ₹488 Cr profit, and zero pledges!)
1. At a Glance
Some companies age like wine. Sundaram Finance, born in 1954, aged like… a vintage Ambassador car that still starts on the first key twist. At ₹52,148 crore market cap and ₹4,700 per share, this old-school NBFC is still collecting EMIs faster than some fintechs collect VC money.
Q2 FY26 saw revenue rise to ₹2,386 crore (up 14.4 % YoY) and PAT ₹488 crore (up 11.9 %). EPS? A cool ₹43.94 this quarter — annualised ₹176 — which gives a P/E of 26.4×.
Despite a debt–equity ratio of 4.35×, the balance sheet looks clean — no pledges, no drama, only discipline. ROE 15.3 %, ROCE 9.6 %, and a dividend yield of 0.75 % — Sundaram still behaves like the “finance uncle” of the NBFC world: slow, steady, and judgmental toward new-age lenders with neon logos.
But the real question — can a company that financed trucks in 1954 still cruise in an EV-fintech era?
2. Introduction
Sundaram Finance isn’t just old; it’s practically pre-historic in the Indian NBFC zoo. When it started, the only “fintech” India had was the post office. Over seven decades later, while Paytm writes poetry on cashbacks, Sundaram still writes cheques that clear.
The company’s DNA is pure Chennai: conservative, punctual, and mildly allergic to risk. Its balance sheet smells of filter coffee, not venture capital. While others talk “disruption,” Sundaram talks “collections.”
What’s fascinating is how it quietly scaled across domains — vehicle finance, home loans, insurance, and asset management — yet you’ll never see their CEO trending on Twitter with #Finfluencer. That’s because they believe in interest in the literal sense, not in social-media metrics.
So here we are, 71 years later, watching a company that financed bullock carts (almost) now finance EV trucks. Same discipline, same south-Indian calm, slightly better Excel models.
Ever wondered how this NBFC uncle keeps its white shirt spotless while others drown in NPAs?
3. Business Model – WTF Do They Even Do?
Sundaram Finance basically runs a lending buffet. You walk in, pick your poison — car, truck, tractor, crane, or SME loan — and they’ll finance it with a smile (and 13 pages of documentation).
They’ve also expanded into:
Sundaram Home Finance – because EMIs on homes are tastier than EMIs on trucks.
Sundaram Asset Management – because someone had to teach mutual-fund SIPs to Chennai’s aunties.
Sundaram General Insurance – to insure all the trucks they already financed.
Sundaram Alternate Assets – because “Alternate” makes everything sound cooler.
Essentially, it’s an NBFC conglomerate wrapped in an Excel sheet. The AUM ₹1.08 lakh crore (FY23) spans from vehicle finance (₹34,500 cr) to home finance (₹11,180 cr), insurance (₹7,600 cr) and AMC business (₹54,800 cr).
Their bread and butter remains vehicle loans — especially commercial vehicles (47 % of AUM) and cars (25 %). South India accounts for 57 % of total asset finance AUM.
Imagine a temple-run of loans: from tractors in Tamil Nadu to taxis in Noida, Sundaram is quietly collecting interest everywhere.
And they even offer diesel finance — yes, they literally fund your fuel. If that’s not Indian innovation, what is?
4. Financials Overview
Source table
Metric (₹ crore)
Q2 FY26
Q2 FY25
Q1 FY26
YoY %
QoQ %
Revenue
2,386
2,085
2,349
14.4 %
1.6 %
EBITDA (≈ Fin. Profit)
695
599
627
16.0 %
10.8 %
PAT
488
436
475
11.9 %
2.7 %
EPS (₹)
43.94
39.26
42.77
12.0 %
2.7 %
Annualised EPS ≈ ₹ 176 → P/E ≈ 26.4×.
Commentary: Margins hold strong at 79 % OPM. PAT margins ~21 %. For a 70-year-old NBFC, that’s Pilates-level flexibility. The sequential growth may look modest, but that’s because they’re not chasing adrenaline; they’re chasing repayments.
5. Valuation Discussion – Fair Value Range
Let’s crunch some numbers like accountants in heat.
(a) P/E Method
Annualised EPS = ₹ 176. If sector P/E ≈ 22–28×, fair value range = ₹ 3,872 – ₹ 4,928.
