Shriram Finance Q3 FY2025 Results: 73% Profit Surge to ₹3,249 Crore; Shares Drop 4%

Shriram Finance Q3 FY2025: Profit Jumps 73% on One-Time Gain Amid Core Weakness

Financial Overview

Shriram Finance reported a 73.4% YoY surge in net profit to ₹3,249 crore for Q3 FY2025, driven by a one-time gain of ₹1,554 crore from divesting its stake in Shriram Housing Finance. Excluding this gain, core profit declined 9.5% YoY to ₹1,695 crore.

Key Metrics

• Net Interest Income (NII): ₹5,590 crore (13.8% YoY growth)
• Assets Under Management (AUM): ₹2.54 lakh crore (18.8% YoY increase)
• Asset Quality: Gross NPA rose to 5.38%, led by commercial vehicle loans

Market Reaction & Dividend

Shares fell 3.9% post-results due to weaker operational performance. The board approved an interim dividend of ₹2.5 per share (125% payout).

Operational Challenges

• Net Interest Margin (NIM) dipped to 8.48%
• Provisions increased 8% sequentially to ₹3,162 crore
• Cost-to-income ratio rose to 28.59%

Strategic Focus

The company plans to raise funds via non-convertible debentures (NCDs) to support expansion. Analysts flag concerns over rising competition and asset quality pressures.

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