Shriram Finance Hits All-Time High, Surpasses Peers on Strong Q2 Earnings and Analyst Optimism

Banking/Finance

Updated on 03 Nov 2025, 05:26 am

Reviewed By

Aditi Singh | Whalesbook News Team

Short Description :

Shriram Finance shares reached an all-time high of ₹794.70, rallying 6% on Monday. This surge follows steady September quarter earnings, with the company surpassing Punjab National Bank and Cholamandalam Investment in market capitalization, now standing at ₹1.49 trillion. The Non-Banking Financial Company (NBFC) has seen a 23% stock price increase in the last month. Analysts maintain positive ratings, citing strong AUM growth potential and favorable market conditions.

Shriram Finance Hits All-Time High, Surpasses Peers on Strong Q2 Earnings and Analyst Optimism

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Stocks Mentioned :

Shriram Finance Limited

Cholamandalam Investment and Finance Company Limited

Detailed Coverage :

Shriram Finance's stock reached an all-time high of ₹794.70, marking a 6% intraday surge on the BSE, driven by steady September quarter (Q2FY26) earnings. The Non-Banking Financial Company (NBFC) has seen a significant 23% stock price increase over the past month. Crucially, Shriram Finance has surpassed competitors Punjab National Bank and Cholamandalam Investment in market capitalization, achieving ₹1.49 trillion.

Financially, the company reported robust performance in Q2FY26: disbursements grew 10.2% YoY to ₹49,019 crore, and Assets Under Management (AUM) rose 15.7% YoY to ₹2.8 trillion. Net Interest Income (NII) increased by 11.7% YoY to ₹6,266 crore. Earnings grew 11.4% YoY to ₹2,307 crore, with stable credit costs. Gross Non-Performing Assets (GNPA) remained manageable at 4.57%.

Analysts are highly optimistic. InCred Equities highlights diversification and rural reach for AUM growth, maintaining an 'ADD' rating with a ₹870 target. Motilal Oswal Financial Services raised its FY26/FY27 estimates due to better margins and lower costs, naming Shriram Finance a top NBFC pick for CY25 with a 'BUY' rating and ₹860 target. They project a ~16-18% AUM/PAT CAGR.

Impact: This strong performance and positive analyst outlook are expected to boost investor confidence in Shriram Finance and potentially the broader NBFC sector, suggesting potential for further stock appreciation. Impact Rating: 8/10

Difficult Terms: NBFC: Non-Banking Financial Company; provides financial services without a full banking license. Market Cap: Market Capitalization; total market value of a company's shares. AUM: Assets Under Management; total market value of investments managed by a firm. YoY: Year-on-Year; comparison to the same period in the previous year. NII: Net Interest Income; a bank's profit from lending and borrowing activities. GNPA: Gross Non-Performing Assets; loans with overdue payments for a specified period.