Shriram Finance: More than 15% AUM growth in 2Q27F; monsoon trends key for any revision in guidance; maintain Buy

研报英文原文证据摘录

Shriram Finance: More than 15% AUM growth in 2Q27F; monsoon trends key for any revision in guidance; maintain Buy

Global Markets Research

Shriram Finance SHMF.NS SHFL IN 26 July 2026

EQUITY: FINANCIALS

RatingCautious about monsoon Remains Buy

Target priceMore than 15% AUM growth in 2Q27F; monsoon trends Increased from INR 1,235key for any revision in guidance; maintain Buy INR 1,200

1Q27: 16% beat our estimates and 9% beat on consensus estimates Closing24 July 2026price INR 1,005

• SHFL reported 60% y-y growth in net profit in 1Q27, beating our estimate by 16%.

Implied upside The beat was broad based with better-than-expected trends on all key lines. +22.9%

• NIMs were up 97bp q-q led by a 51bp expansion in yields (gains from parked funds of Market Cap (USD mn) 24,496.4

MUFG Bank (unlisted)) offsetting 12bp higher cost of funds (due to excess liquidity). ADT (USD mn) 65.5

Healthy momentum in gold financing; turning optimistic about MSME growth Relative performance chart

• MSME AUM slowed down further, with just 8% y-y growth in 1Q27. Management had

turned cautious here due to global events last year. MSME gross stage 2+3 (%) also

inched up 20bp q-q. However, management believes that incremental stress here is

limited, and it is optimistic about turning around this book.

• Gold financing momentum has sustained, with 46% y-y growth in 1Q27, after 37% y-y

growth last quarter. SHFL is disbursing gold loans via 220 branches and wants to

double the mix of gold financing over the next three years.

Asset quality trends in most vehicle segments decent for a seasonal quarter

• Commercial vehicle (CV) and passenger vehicle (PV) gross stage 2+3 (%) was up only

8-9bps q-q in a seasonally weak quarter, indicating little impact from a fuel price hike.

Source: LSEG, Nomura