Shriram Finance Q2 FY27: standalone PAT up 59% YoY to ₹3,677cr, margins expand further

Shriram Finance's standalone profit after tax rose 58.9% year-on-year to ₹3,677.03cr for Q2 FY27 (quarter ended September 30, 2026), from ₹2,307.18cr a year ago, and climbed 6.5% sequentially from ₹3,444.56cr in Q1 FY27. Total income grew 15.8% YoY to ₹13,798.91cr and 2.9% QoQ. Net profit margin expanded to 26.65% from 19.36% a year ago and 25.68% in Q1, continuing the margin-expansion trend of the last two quarters. None of this growth is exceptional-item driven — the exceptional items line is nil in both the current and year-ago quarters, so the 58.9% YoY PAT growth is organic. The margin bridge was cost-side: employee, depreciation and other opex together came to roughly 21.9% of net interest income plus other income this quarter, down from about 24.4% in Q1, consistent with management's prior guidance of a stable-to-improving cost-to-income ratio. One figure worth flagging for readers comparing EPS to PAT: basic EPS grew only 27.4% YoY to ₹15.63 (versus ₹12.27 a year ago) — far below the 58.9% PAT growth — because paid-up equity capital rose about 25% YoY (₹376.20cr to ₹470.61cr face value) after MUFG Bank's ₹39,618cr preferential allotment for a 20% stake, completed in April 2026; this is capital-structure dilution, not an operating issue. Against our pre-result preview (PAT ~₹3,100-3,300cr, NII ~₹8,100-8,200cr), the actual standalone PAT of ₹3,677cr and an NII proxy (interest income less finance costs) of roughly ₹8,415cr both came in above the expected range — a beat. Management's prior concall guidance of FY27 AUM growth near 18% looks on track: standalone net loans on book grew from ₹2,82,452.44cr at FY26-end to ₹3,07,833.55cr, about 9% in just the half-year. We could not verify the company's disbursement figure (preview range ₹50,000-52,000cr) or true AUM (preview range ₹3,250-3,350 billion, a different base than on-book net loans) from this extract. No press release text was available in the provided context to cross-check management's own framing of the quarter. Standalone and consolidated results have tracked within about 0.5% of each other in the comparison-quarter data embedded in our records, so the consolidated PAT is likely close to this standalone print, but that is not confirmed since the consolidated statement isn't in this document. Separately, the company was fined ₹67.9cr by the Income Tax department on September 30, 2026, which does not appear in this quarter's exceptional items line, implying it is either under appeal, provided for elsewhere, or not yet booked. The board also declared an interim dividend of ₹6.50 per share (325% of face value) for FY27, up from the ₹6/share final dividend paid for FY26, alongside board approval to raise the NCD/subordinated debt issuance ceiling to ₹35,000cr — both signal continued capital confidence following the MUFG capital infusion earlier in the year.