Q4 FY25 Financial Performance Overview

Shriram Finance Limited, one of India’s prominent non-banking financial companies (NBFCs), has delivered a robust financial performance for the fourth quarter of FY25. The company reported a 10% year-on-year growth in its standalone net profit, which reached Rs 2,139.39 crore. This marks an increase from Rs 1,945.87 crore recorded during the same period last year. The strong growth highlights Shriram Finance’s ability to navigate a challenging financial landscape and deliver solid returns to its stakeholders.

Highlights:

Q4 FY25 net profit: Rs 2,139.39 crore, up 10% from Q4 FY24
Reflects strong operational execution despite market challenges

Revenue Growth Driven by Interest Income

For the fourth quarter, Shriram Finance’s total income surged to Rs 11,460.25 crore, up from Rs 9,497.85 crore in Q4 FY24. The growth in total income was driven by substantial revenue from operations, which reached Rs 11,454.23 crore. A significant contributor to this income was the company’s interest income, which amounted to Rs 10,789.51 crore. This reflects the strong demand for Shriram Finance’s loan products and its effective asset management strategies. Additionally, the company reported fee and commission income of Rs 330.62 crore, and net gains on fair value changes stood at Rs 111.27 crore, further bolstering its financial performance.

Highlights:

Q4 total income: Rs 11,460.25 crore, up 20% from Q4 FY24
Interest income: Rs 10,789.51 crore, a primary driver of growth

Expense Management and Profit Margins

Shriram Finance effectively managed its expenses during Q4 FY25, with total expenses for the quarter amounting to Rs 8,688.27 crore. This figure covers the company’s operational and financial costs, and despite the increase in revenue, the firm managed to maintain a healthy profit margin. The profit before tax (PBT) for Q4 stood at Rs 2,771.98 crore, reflecting efficient cost control and revenue maximization.

Highlights:

Q4 expenses: Rs 8,688.27 crore, showcasing effective cost control
Profit before tax (PBT): Rs 2,771.98 crore for the quarter

Taxation and Net Profit After Tax

Following tax outgo of Rs 498.00 crore in current tax and Rs 134.59 crore in deferred tax, Shriram Finance’s net profit after tax (PAT) for the quarter was Rs 2,139.39 crore. This is an increase from the PAT of Rs 1,945.87 crore recorded in the same quarter the previous year. The company’s earnings per share (EPS) for Q4 were reported at Rs 11.38 basic and Rs 11.36 diluted, reinforcing its strong profitability for the period.

Highlights:

Q4 PAT: Rs 2,139.39 crore, up 10% from Q4 FY24
EPS for Q4: Rs 11.38 basic and Rs 11.36 diluted

Full-Year Financial Performance

For the full fiscal year, Shriram Finance posted a total income of Rs 41,859.47 crore, marking a significant increase from Rs 34,997.61 crore in FY24. The company’s full-year net profit surged to Rs 9,761.00 crore, up from Rs 7,190.48 crore in the previous year. A notable contributor to this growth was the gain of Rs 1,656.77 crore from the disinvestment of Shriram Housing Finance Limited. Excluding this one-time gain, the profit before tax for the year was Rs 10,949.25 crore, underscoring the company’s strong operating performance across the year.

Highlights:

Full-year total income: Rs 41,859.47 crore, up 20% YoY
Full-year net profit: Rs 9,761.00 crore, a 36% YoY increase

Asset Management and Financial Ratios

Shriram Finance’s assets under management (AUM) grew significantly, reaching Rs 2,93,532.91 crore as of March 31, 2025, compared to Rs 2,37,276.38 crore a year earlier. This growth in AUM demonstrates the company’s ability to expand its business and attract more clients. The company’s total equity stood at Rs 56,280.57 crore, and the debt-equity ratio was reported at 4.16 times, which indicates a manageable level of leverage. Additionally, Shriram Finance maintained a strong capital adequacy ratio of 20.66%, providing a solid cushion to absorb potential financial stress.

Highlights:

AUM as of March 31, 2025: Rs 2,93,532.91 crore, up 24% from FY24
Capital adequacy ratio: 20.66%, indicating strong financial stability

Non-Performing Assets (NPA) and Risk Management

The company’s non-performing assets (NPAs) remained under control, with the gross NPA ratio reported at 4.55% and the net NPA ratio at 2.64%. These figures are within industry standards, indicating that Shriram Finance has effectively managed its asset quality. The firm’s risk management strategies, including prudent lending practices and robust collections, continue to help minimize defaults and maintain the integrity of its loan book.

Highlights:

Gross NPA ratio: 4.55%, Net NPA ratio: 2.64%
Effective risk management and asset quality control

Dividend Announcement and Shareholder Returns

The Board of Directors at Shriram Finance has recommended a final dividend of Rs 3 per share, with a face value of Rs 2 each. This decision reflects the company’s strong financial performance and its commitment to rewarding shareholders. The dividend is expected to provide further value to investors who have supported the company’s growth. However, despite the strong financial results, Shriram Finance’s stock saw a decline of over 8% on the day the results were announced, closing the session at Rs 640 per share. Nonetheless, the stock has appreciated by nearly 10% year-to-date in 2025, reflecting broader investor confidence in the company’s long-term prospects.

Highlights: