Shriram Finance Q2 FY26 Net Profit Surges 7.47% to Rs 2,314 Crore; Stock Hits Record High

Shriram Finance has announced its financial results for the second quarter of the fiscal year 2026 (Q2 FY26). The company achieved a consolidated net profit of Rs 2,314.16 crore, representing a year-on-year growth of 7.47% from Rs 2,153.27 crore in Q2 FY25. On a standalone basis, net profit rose by 11.39% YoY to Rs 2,307.18 crore. Net interest income also saw a substantial increase of 17.69%, reaching Rs 11,550.56 crore.

Key highlights include the declaration of an interim dividend of Rs 4.80 per equity share for FY25-26, with a record date set for November 7. The board has also approved a plan to raise funds between November 1, 2025, and January 31, 2026, through the issuance of redeemable non-convertible debentures (NCDs), subordinated debentures, or bonds via private placement or public issue. Additionally, shareholders will be asked via a postal ballot to renew the company's limit for issuing debentures on a private placement basis up to Rs 35,000 crore.

**Impact** The strong financial performance, coupled with dividend distribution and proactive fundraising strategies, signals robust business operations and future growth potential. This has been well-received by the market, leading to a 4.3% surge in Shriram Finance's stock price to a record high. The approved fund-raising and debenture issuance plans suggest continued expansion and operational strengthening, which could positively impact future profitability. **Impact Rating:** 8/10.

**Difficult Terms Explained** * **Consolidated Net Profit**: The total profit of a parent company and its subsidiaries after all expenses and taxes are deducted. * **Standalone Net Profit**: The profit of the company solely, without including its subsidiaries. * **Year-on-year (YoY)**: A comparison of financial metrics over a period with the same period in the previous year. * **Net Interest Income (NII)**: The difference between the interest earned on assets and the interest paid on liabilities by a financial institution. * **NBFC**: Non-Banking Financial Company, a financial institution providing financial services but without a full banking license. * **Interim Dividend**: A dividend paid to shareholders during the financial year, before the final dividend is declared. * **Equity Share**: A common type of stock representing ownership in a company. * **Record Date**: The specified date by which a shareholder must be registered to be eligible for a dividend. * **Redeemable Non-Convertible Debentures (NCDs)**: Debt instruments that pay fixed interest and are repaid at maturity but cannot be converted into shares. * **Subordinated Debentures**: Debt that ranks below other senior debts but above equity in the event of liquidation. * **Bonds**: Long-term debt instruments issued by companies or governments to raise capital. * **Private Placement**: Selling securities directly to a select group of investors, rather than through public markets. * **Public Issue**: Offering securities to the general public for subscription. * **Postal Ballot**: A method for shareholders to vote on resolutions without attending a physical meeting. * **Record High**: The highest price a stock has ever reached in its trading history.