Shriram Finance Share Price Falls 9% After Q4 Results

Shriram Finance share price fell by as much as 9% on Monday, April 28, after the company announced its March quarter results. The drop came mainly because the company wrote off gross Non-Performing Assets (NPAs) worth ₹2,345.11 crore during the quarter. This raised concerns about the quality of its loan book.

Profit Grows, But Challenges Remain

Shriram Finance reported a standalone net profit of ₹2,139.4 crore for the quarter ending March 2025, showing a 9.9% rise compared to the same quarter last year. The profit was almost exactly in line with Bloomberg’s estimate of ₹2,137.5 crore.

Even with the profit growth, investors are concerned about the current challenges being faced by the company. Shriram Finance is facing pressure on its Net Interest Margin (NIM), meaning it is earning less from its lending business compared to earlier. This has prompted investors to reconsider the company’s future financial outlook.

About Shriram Finance

Shriram Finance is one of India’s leading non-banking financial companies (NBFCs). It mainly focuses on lending to small businesses, commercial vehicle owners, and individuals who often find it difficult to get loans from traditional banks.

The company has a strong presence in rural and semi-urban areas and plays an important role in financial inclusion. However, because it serves riskier customer segments, it also faces greater challenges in maintaining loan quality during tough economic conditions.

Conclusion

While Shriram Finance posted healthy profit growth for the March quarter, the large NPA write-off and pressure on margins have worried investors. Going forward, the company’s ability to manage asset quality and control credit costs will be crucial for rebuilding market confidence.

At 11:33 AM, Shriram Finance share price was down 4.70% and was trading at ₹624.40.

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