Shares of Shriram Finance fell as much as 9 per cent after the non-banking finance company (NBFC) reported its fourth quarterly results for the fiscal year ended March 31, 2025 (Q4 FY25). During the session, the NBFC stock slipped to the day’s low at Rs 596.15 per share on the NSE.
The company had reported its Q4 numbers on April 25, just before the closing of the market. On that day, it slipped nearly 6 per cent.
That makes today the second consecutive session of decline for the stock after posting its Q4 numbers. During these two sessions, it fell as much as 14.5 per cent.
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Shriram Finance Q4 FY25 Results
Shriram Finance reported a standalone net profit of Rs 2,139.39 crore in the fourth quarter of the fiscal year ended March 31, 2025 (Q4 FY25), up nearly 10 per cent from Rs 1,945.87 in the previous year's corresponding quarter.
The NBFC's net interest income (NII) increased 13 per cent to Rs 6051 crore from Rs 5,336 crore in the previous year's corresponding quarter.
Total revenue from operations for the quarter under review stood at Rs 11,460.25 crore, up 20.6 per cent from Rs 9,497.85 crore in the year-ago period.
The NBFC’s credit cost rose sharply by 18 per cent sequentially to 2.4 per cent of Assets Under Management (AUM). Total AUM, as of March 31, 2025, increased by 17.05 per cent to Rs 2.63 lakh crore, as compared to Rs 2.25 lakh crore as on March 31, 2024 and Rs 2.54 lakh crore as on December 31, 2024.
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Misses Analysts’ Estimates
JM Financial Institutional Securities said in a note that the company’s net profit was 3 per cent lower than their estimates, mainly due to higher credit costs.
Brokerage firm Elara Capital noted, "Shriram Finance's Q4 earnings although in-line were mixed on account of elevated credit costs and lower margin with tad lower business traction. Said that, excess liquidity on the balance sheet and increased debt towards fiscal end weighed upon NIMs."
The company’s board also recommended a dividend of Rs 3 per share, taking the total dividend for the financial year 2024-25 to Rs 9.90 per share.
Going forward, the NBFC's management has guided for an improvement in NIM to the tune of 8.5-8.6 per cent in FY26, and a 15 per cent growth in AUM. The management does not expect stress or credit cost rising in FY26.
