Adobe Stock
Shriram Finance delivered a solid set of Q4 numbers on the surface. Revenue surged 21 per cent year-on-year and net profit grew 6 per cent. But the market wasn't impressed.
The stock slipped 6 per cent today, as investors homed in on a familiar problem: shrinking net interest margins (NIMs) and rising funding costs. In a market that's demanding clean beats and strong forward signals, good isn't always good enough.
Shriram Finance Q4 at a glance
| Metric | Q4 FY25 | YoY change |
|---|---|---|
| Revenue | Rs 11,454 crore | +20.8 per cent |
| Net profit | Rs 2,144 crore | +6 per cent |
| Net interest income | Rs 6,051 crore | |
| Dividend (proposed) | Rs 3/share |
Revenue growth was driven by a bigger loan book across vehicle finance, MSME lending and personal loans. But rising funding costs—thanks to tighter liquidity and higher bond yields—put the brakes on margins.
What's working for Shriram Finance
-
Strong disbursement momentum across businesses
-
Healthy asset quality—no major slippage worries flagged yet
- Record high revenue run-rate going into FY26
On pure scale, Shriram is firing. But...
What's worrying the Street
-
Net interest margins are narrowing
, weighing on profitability
-
Funding cost pressures are rising
and may persist into H1 FY26
- Net profit growth is lagging revenue —a sign that scaling alone isn't enough if margins slip
Shriram delivered a net profit of Rs 2,144 crore, exceeding expectations, but the mix and margin compression didn't inspire much cheer.
Value Research Online Ratings
Value Research Stock Rating gives Shriram Finance an overall rating of 5 stars. The company's specific scores are as follows:
-
Quality Score: 10/10
-
Growth Score: 7/10
-
Valuation Score: 7/10
- Momentum Score: 9/10
- Compare Shriram Finance's RoA, NIMs and loan growth trends against peers using our Stock Screener
- Get a detailed financial snapshot from our Stock Card
Final take
Shriram Finance isn't facing a demand problem—it's facing a margin problem.
Revenue growth is strong. Disbursements are healthy. But rising borrowing costs are eating into profitability and that's the piece the market is focusing on.
At this point, sustaining growth without letting margins slip further will be key. Otherwise, FY26 might feel heavier on the top line—and lighter where it matters: the bottom.
Looking for more than just market buzz?
At
Value Research Stock Advisor
, we go beyond trends. As a subscriber, you get access to a carefully curated list of high-conviction stock recommendations, three ready-to-use portfolios (aggressive growth, long-term growth and dividend growth) and timely updates—built on long-term thinking, not just headlines. Whether you are looking to build a solid portfolio or simply make more informed investment decisions, we are here to help you cut through the noise.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
