23-Oct-2026 22:47:00
SHRIRAM FINANCE Q2 CONCALL : FY27 AUM GROWTH GUIDANCE CUT TO 15–17%, NIM EXPECTED TO MODERATE TOWARD 9% & CREDIT COST PRESSURE LIKELY FOR 1–2 QUARTERS 🔴🔴🔴
• FY27 AUM GROWTH GUIDANCE REDUCED TO 15–17% FROM EARLIER 18% • MANAGEMENT EXPECTS STRONGER H2 GROWTH BUT REMAINS CAUTIOUS DUE TO WEAK MONSOON & ECONOMIC UNCERTAINTY • NIM EXPECTED TO REMAIN AROUND CURRENT 9.52% FOR NEXT 1–2 QUARTERS • MEDIUM-TERM NIM EXPECTED AROUND 9%, WITH LONG-TERM OUTLOOK AT 8–8.5% • LONG-TERM CREDIT COST EXPECTATION MAINTAINED AROUND 2% • CREDIT COST COULD TEMPORARILY INCREASE BY 30–40 BPS IN AFFECTED PERIODS, WITH PRESSURE EXPECTED FOR 1–2 QUARTERS • WEAK MONSOON IMPACTING BORROWER REPAYMENTS IN MAHARASHTRA, KARNATAKA & TELANGANA • MSME LOAN BOOK EXPECTED TO GROW FASTER THAN OTHER SEGMENTS, SUPPORTED BY NATIONWIDE EXPANSION • GOLD LOAN PORTFOLIO SHARE TARGETED TO INCREASE TO 5% OVER THREE YEARS FROM CURRENT 2.5% • CONSTRUCTION EQUIPMENT FINANCING DEMAND SHOWING RECOVERY, SUPPORTED BY GOVERNMENT INFRASTRUCTURE SPENDING • COST-TO-INCOME RATIO EXPECTED AROUND 25% OVER MEDIUM TO LONG TERM VS 22.52% IN Q2 • COST OF LIABILITIES DECLINED TO 8.41% FROM 8.56% QOQ, BUT FURTHER REDUCTION REMAINS UNCERTAIN • STRONG CAPITAL ADEQUACY AT 33.24% & LIQUIDITY COVERAGE RATIO AT 303% SUPPORT FUTURE LENDING GROWTH • PROPOSED INSURANCE COMMISSION REGULATIONS COULD REDUCE ANNUAL INCOME BY APPROXIMATELY ₹100 CR IF IMPLEMENTED • LOWER AUM GROWTH GUIDANCE, NIM NORMALIZATION, HIGHER CREDIT COSTS & ASSET QUALITY PRESSURE REMAIN KEY RISKS
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