1. At a Glance – Old Money, New Numbers
Sundaram Finance is that rare Indian NBFC which behaves like a calm South Indian uncle at a noisy wedding. No shouting. No dancing. Just quietly compounding wealth since 1954.
As of today, the company sits at a market cap of ₹59,135 Cr, trading around ₹5,348, up 12.2% in the last 3 months and 19.3% over one year. Not euphoric, not depressing — just… sensible.
The latest Q3 FY26 (Dec 2025) numbers show ₹2,514 Cr revenue with PAT of ₹541 Cr, translating into a 30.1% YoY profit growth. EPS for the quarter came in at ₹48.73, which when annualised (quarterly result, so yes ×4) lands us near ₹195+ EPS run-rate, broadly in line with reported TTM EPS of ₹185.
ROE sits at 15.3%, ROCE at 9.64%, debt-to-equity at 4.35x (normal for NBFCs), and asset quality remains boringly good.
If excitement was a stock, Sundaram Finance would short it. And that’s precisely why conservative investors secretly love it.
2. Introduction – When “Boring” Becomes a Compliment
In a market obsessed with fintech buzzwords, app downloads, and BNPL disasters, Sundaram Finance continues doing what it has done for seven decades: lend carefully and sleep peacefully.
Founded when India didn’t even have a proper stock market culture, the company began with commercial vehicle financing and slowly expanded into equipment leasing, home finance, mutual funds, and insurance distribution. No reckless pivots. No “AI-powered tractor loans”. Just methodical expansion.
What separates Sundaram from many NBFC peers is temperament.
While others chase growth at any cost, Sundaram prefers underwriting discipline, conservative provisioning, and long-term customer relationships — especially in semi-urban and rural India.
And guess what? Over
time, the numbers reward patience.
5-year stock CAGR: ~23%
3-year stock CAGR: ~33%
Not bad for a company your risk-taking friend calls “too safe”.
So the real question is — is this still a slow-moving elephant, or has it quietly become a marathon runner?
3. Business Model – WTF Do They Even Do?
Let’s simplify.
Sundaram Finance is essentially a retail-focused NBFC with multiple verticals, but its soul still lives in asset finance.
Core lending businesses:
- Commercial Vehicle Finance – trucks, trailers, transport backbone of India
- Car Finance – new and used vehicles
- Construction Equipment Finance – cranes, bulldozers, infra toys
- Farm Equipment Finance – tractors, harvesters
- SME Finance – boring businesses that actually repay loans
- Leasing – structured leasing for vehicles and machinery
Then come the side hustles (which are now meaningful businesses):
- Home Finance
- Mutual Fund & AMC business
- General Insurance distribution
- Diesel, tyre & insurance financing
This is not a “one-cycle” lender. When CVs slow, used cars help. When cars slow, tractors show up. When lending slows, AMC and insurance quietly earn fees.
It’s a portfolio lender, not a gambler.
4. Financials Overview – Numbers Don’t Lie, But They
