Shriram Finance is expected to post double-digit growth in net interest income (NII) for the April–June quarter (Q1FY26), buoyed by healthy loan growth, according to analysts. The non-bank lender is slated to announce its results on July 25, 2025.
According to Moneycontrol's poll, Shriram Finance’s NII will rise by 13 percent year-on-year (YoY) to Rs 5,896 crore in Q1FY26, up from Rs 5,233 crore in the same quarter a year earlier. The company’s profit after tax is also expected to grow by 7 percent YoY, reaching Rs 2,131 crore compared to Rs 1,980 crore in Q1FY25.
Estimates of analysts polled by Moneycontrol are shown to be in a narrow range, meaning any positive or negative surprises may elicit a sharp reaction in the stock price. Among the brokerages polled, Emkay Global rolled out the most bullish projections while Motilal Oswal forecasted the slowest growth for Shriram Finance.
What factors are driving the earnings?
Healthy loan growth: Analysts at Kotak expect Shriram Finance to report quarter-on-quarter (QoQ) loan growth of around 3.8 percent in Q1FY26 — in line with the 3.4–4.7 percent range seen over the previous four quarters — and a robust 17 percent YoY growth in loans.
Margin expansion: Brokerages anticipate a modest expansion in net interest margins, which are expected to rise by about 20 basis points YoY to 9.2 percent in Q1FY26, compared to 9 percent a year earlier. This improvement is attributed to a reduction in liquidity held on the balance sheet.
Declining credit costs: Analysts at Kotak estimate that credit costs will remain stable to slightly lower at about 2.2 percent in Q1FY26, consistent with the 2.1–2.4 percent range observed in the last four quarters.
What to look out for in the quarterly show?
Investors and analysts will closely monitor management commentary on loan growth in the commercial vehicle (CV) segment, as well as trends in asset quality within the two-wheeler (2W) and personal loan (PL) portfolios — both of which remain key areas of focus.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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