Making CVs Viable

Shriram Finance closed the second quarter of FY2025-26 on a strong note, underlining its dominance in India's Commercial Vehicle (CV) financing landscape

- Ashish Bhatia.

Shriram Finance Ltd. reported that Assets Under Management (AUM) grew by 15.74 per cent Year-On-Year (YoY) to reach Rs. 2.81 lakh crore, reaffirming its position as one of the country's largest retail asset financiers. Within this, the commercial vehicle portfolio retained its commanding share, accounting for Rs. 1.28 lakh crore or 45.55 per cent of the total AUM, a 14.21 per cent YoY rise and a sequential growth of 4.07 per cent.

Managing Director and CEO, Y.S. Chakravarti, emphasised that the company's disciplined growth is “rooted in our deep understanding of Small Road Transport Operators (SRTOs) and fleet owners, who form the backbone of India's logistics network.” He added that the focus continues to be on building sustainable credit quality while expanding market share in both new and preowned vehicle segments. For Q2-FY26, SFL reported a Profit After Tax (PAT) of Rs. 2,307 crore, marking an 11.39 per cent YoY and 7.03 per cent sequential growth. Total income increased 18.03 per cent YoY to Rs. 11,916 crore, while Net Interest Income (NII) rose 11.77 per cent to Rs. 6,267 crore. Commercial vehicles remained the largest contributor, bolstered by robust demand in the Medium and Heavy Commercial Vehicle (MHCV) and Light Commercial Vehicle (LCV) segments. The Gross Stage 3 assets in the segment improved to 4.79 per cent (down from 5.79 per cent a year ago), and Net Stage 3 assets to 2.71 per cent, demonstrating effective credit monitoring. The coverage ratio strengthened to 44.63 per cent, reflecting improved provisioning efficiency and portfolio resilience. "Our asset quality is steady despite a higher book size," said Chakravarti, noting that the lender's risk management architecture and granular diversification continue to buffer the portfolio against cyclical slowdowns.

CORE TO RURAL AND FLEET ECONOMIES