Shriram Finance Ltd. share price target

Shriram Finance reported a strong quarter with PAT growing 40.86% YoY, NII up 15.58% YoY, and NIM improving to 8.61% from 8.25% YoY. AUM stood at ~Rs 3,22,000 cr, up 14.85% YoY, with disbursements up 14.91% YoY. Cost-to-income improved sharply to 25.32% from 27.65% YoY. The quarter's defining event was the completion of MUFG Bank's preferential allotment of Rs 396.18 bn for a 20% stake, a transformative capital and strategic milestone. Post infusion, capital adequacy is expected to reach ~34%. We largely maintain estimates. We...

We maintain our BUY recommendation on the stock

As of March 2026, SHF has a huge presence with 3,225 branches across India and employee count of 76,241, customer base of ~97.3 lakhs. Q4FY26 performance: Shriram Finance reported steady performance, with growth supported by continued traction in vehicle finance and stable rural demand. AUM increased 14.9% YoY to 3.02 lakh crore. Margins were stable QoQ at 8.61% supported by a gradual decline in borrowing cost. Operating performance remained healthy, with credit cost at ~1.7%, resulting in 40.9% YoY growth in PAT to 3,014...

Shriram Finance’s (SHFL) 4QFY26 PAT rose ~41% YoY to ~INR30.1b (8% beat). FY26 PAT grew 21% YoY to ~INR100b. 4Q NII grew ~21% YoY to INR67.5b (in line).

Shriram Finance Limited reported a steady Q3FY26 performance, with management reiterating a clear roadmap focused on sustaining growth, improving capital efficiency and strengthening customer retention. The company continues to guide for 1820% AUM growth, supported by a favourable outlook for vehicle sales and deeper penetration across rural, semiurban and select urban markets. Profitability was impacted by a one-off regulatory expense linked to new labour codes, while underlying operating trends remain healthy. Reported ROA/ROE stood at 0.91%/12.7%, improving to ~1.0%/~14.1% on a normalised basis, highlighting a strengthening return profile....

About the stock: Shriram Finance (SHF) is large financier with a strong rural presence engaged in credit solution for commercial vehicles, two-wheeler, car loans, home loans, gold loans and small business. As of 30 Dec 2025, SHF has a huge presence with 3,225 branches across India...

We maintain our BUY rating on the stock.

Shriram Finance’s (SHFL) 3QFY26 PAT rose ~21% YoY to ~INR25.2b (in line). NII grew ~18% YoY to INR65.7b (inline). Other income declined ~2% YoY to INR3.6b (14% lower than est.).

We value SFL at 2.4x Sep'27E ABV to arrive at a target price of Rs 1,150/share, implying an upside of 17% from the CMP.

Shriram Finance (SFL) is likely to emerge as a leader in the NBFC space in the next five years with structurally better profitability. Management highlighted that it expects a 100bps reduction in cost of borrowing (CoB) over the next 2–3 years and it would utilise the same to retain/acquire new customers.

Shriram Finance (SHFL) hosted an investor call on 30th Dec’25 to provide further clarity and address investor queries regarding the proposed preferential allotment of a ~20% equity stake to MUFG Bank for an aggregate consideration of USD4.4b.

SHFL hosted an analyst call to highlight its strategy for growth and utilization of the funds as a consequence of its announcement of the mega deal of Rs 396.2bn with MUFG. The deal is expected to close by end-FY26, subject to regulatory approvals.

We reiterate our BUY recommendation on the stock.

As of 30 Sep 2025, SHF has a huge presence with 3,225 branches across India and employee count of 78,833, customer base of ~96.6 lakhs. Key Development: Shriram Finance's Board has approved a preferential issue of ~39,618 crore to MUFG Bank through issuance of 47.1 crore equity shares at 840.93 per share, resulting in 20% fully diluted stake for MUFG, subject to shareholder and regulatory approvals (RBI, CCI, etc.). Post completion, both MUFG Bank and the Promoter Group will each hold ~20% stake in the company. MUFG will gain the right to nominate up to two non-independent directors. The agreement...

The Board of Shriram Finance (SHFL) has approved a preferential equity issuance of INR396.2b to MUFG Bank Ltd., a leading Japan-based financial institution, at an issue price of INR840.93 per share.

Shriram Finance (SFL) has entered into a strategic partnership with MUFG Bank (Japan-based), wherein the partner has agreed to invest ~USD 4.4bn for 20% stake in SFL via preferential issue

We maintain our BUY recommendation on the stock

As of 30 Sep 2025, SHF has a huge presence with 3,225 branches across India and employee count of 78,833, customer base of ~96.6 lakhs. Q2FY26 performance: Shriram Finance reported steady performance in Q2FY26, disbursement growth and asset quality remained broadly steady. Disbursements grew by 10.2% YoY to 49,019 crore, while AUM increased by 15.7% YoY to 2,81,309 crore. NII rose 11.7% YoY 6,266 crore, with margins inching up 8 bps QoQ amid utilization of excess liquidity. Operational efficiency continued to remain strong with credit cost stable at ~1.9% resulting in 11.4% YoY growth in earnings at...

Shriram Finance’s (SHFL) 2QFY26 PAT rose ~11% YoY to ~INR23b (~5% beat). PAT in 1HFY26 grew 10% YoY, and we expect PAT in 2HFY26 to grow 24% YoY.

We maintain our BUY recommendation on the stock.