Shriram Finance Limited cut its fiscal 2027 (FY27) assets-under-management (AUM) growth target despite a 59% rise in quarterly profit, signaling a more cautious expansion plan as management cited monsoon weakness and uncertainty in West Asia.
The company lowered its target to 15%-17% from 18%. Executive Vice Chairman Umesh Govind Revankar said on the earnings call, “We are very cautious in our growth.”
Shriram Finance’s filing for the quarter ended Sept. 30, 2026, showed standalone net profit of ₹3,677.03 crore, up 59.37% from a year earlier. Net interest income increased 38.20% to ₹8,661.04 crore, while AUM rose 16.96% to ₹329,021.72 crore.
Moneycontrol reported that the shares dropped as much as 6.13% to ₹810.20 on Monday. They were trading at ₹829.60, down 4%, at 12:25 a.m. ET (04:25 UTC), the outlet reported.
Management kept its long-term credit-cost guidance at 2% and said costs could temporarily rise by 30-40 basis points in select regions and products. Motilal Oswal Financial Services forecast that pressure could last for one or two quarters. The firm linked higher loan slippages and write-offs to insufficient rainfall and seasonal strain in some areas, which could weaken rural borrowers’ capacity to repay. Its research note projected compound annual growth of about 18% in AUM and 31% in profit through FY28.
Moneycontrol reported that Jefferies cut its price target to ₹1,145 from ₹1,210 while retaining its Buy rating. Motilal Oswal set a ₹1,155 target, down from its September target of ₹1,220, and also kept Buy. The Economic Times reported that Citi lowered its target to ₹1,100 from ₹1,200 while maintaining Buy.
