Sundaram Finance logs highest-ever disbursements of Rs. 15,423 crores; Q2 disbursement growth of 18% to Rs. 8,113 crores

Sundaram Finance logs highest-ever disbursements of Rs. 15,423 crores; Q2 disbursement growth of 18% to Rs. 8,113 crores

November 3, 2025: The Board of Directors of Sundaram Finance Ltd. (SFL) approved the unaudited standalone and consolidated financial results for the half year ended September 30, 2025, at its meeting held on November 3, 2025, in Chennai.

“Q2FY26 started with continuing macroeconomic sluggishness witnessed over the past few quarters. The introduction of GST 2.0 reforms and the country’s rating upgrade by global rating agencies have boosted overall sentiments over the past 4-6 weeks. Under these circumstances, Team Sundaram has delivered 15.3% growth in AUM to Rs. 55,419 crores, asset quality with net stage 3 assets at 1.13% vs 0.89% last year and profits after tax growth of 27% year-on-year. Our Group companies in asset management, general insurance and home finance have continued to record strong results. We continue to rely on our time-tested approach of steady and sustainable growth with best-in-class asset quality and consistent profitability,” said Harsha Viji, Executive Vice Chairman.

Disbursements for H1FY26 recorded a growth of 12% over H1FY25 and for Q2FY26, disbursements have grown 18% Y-o-Y. Gross stage 3 assets as on September 30, 2025, stood at 2.03% with provision cover of 45% as against 1.62% as on September 30, 2024, with provision cover of 45%. Profits from operations performed strongly, growing by 16% in H1FY26 and 17% in Q2FY26. Profit after tax registered a 27% rise in H1FY26, with net profit at Rs. 823 crores and for Q2, PAT grew 16% to Rs. 394 crores. Return on assets closed at 2.72% in H1FY26 as against 2.50% for H1FY25 and capital adequacy at 19.3% remained quite comfortable.

Rajiv Lochan, Managing Director, stated, “The festival period has been strong, and the morale of team Sundaram is on a high following a well-executed festival plan. We anticipate the impact of GST 2.0 on consumption to be buoyant, rural demand to improve after a healthy monsoon period and private sector capex to pick up in the coming quarters. Consequently, our post-festival outlook for Q3 and H2 is optimistic. We are well-positioned to drive our time-tested mantra of balancing growth with quality and profitability and taking a long-term, through-cycle view to our customers, employees and other partners.”

STANDALONE PERFORMANCE HIGHLIGHTS FOR H1FY26

· Disbursements for H1FY26 grew by 12% to Rs. 15,423 crores as compared to Rs. 13,768 crores registered in H1FY25. Disbursements for Q2FY26 grew by 18% to Rs. 8,113 crores as compared to Rs. 6,860 crores registered in Q2FY25.

· The assets under management grew by 15% to Rs. 55,419 crores as on 30th September 2025 as against Rs. 48,058 crores as on 30th September 2024.

· Net interest income (NII) grew by 23% to Rs. 1,603 crores in H1FY26 from Rs. 1,304 crores in H1FY25. Q2FY26 growth in NII was 21% to Rs. 822 crores.

· Gross stage 3 assets as on 30th September 2025 stood at 2.03% with 45% provision cover as against 1.62% with provision cover of 45% as on 30th September 2024. Net stage 3 assets as on 30thSeptember 2025 closed at 1.13% as against 0.89% as on 30th September 2024.

· The Gross and Net NPA, as per RBI’s asset classification norms for NBFCs, are 2.80% and 1.79% respectively as against 2.39% and 1.55% as of 30th September 2024.

· Cost to income ratio improved to 29.60% in H1FY26 as against 31.91% in H1FY25.

· Profits from operations grew 16% to Rs. 937 crores in H1FY26 as against Rs. 812 crores in H1FY25. For the quarter, profits from operations grew 17% to Rs. 501 crores.

· Higher dividend income resulted in profit after tax registering 27% rise in H1FY26, with net profit at Rs. 823 crores as against Rs. 648 crores in H1FY25. For Q2FY26, PAT grew 16% Y-o-Y to Rs. 394 crores.

· Return on assets (ROA) for H1FY26 closed at 2.72% as against 2.50% for H1FY25. Return on equity (ROE) was at 15.91% for H1FY26 as against 14.24% for H1FY25.

· Capital Adequacy Ratio stood at 19.3% (Tier I –16.9%) as of 30th September 2025 compared to 20.0% (Tier I – 16.4%) as of 30th September 2024.

CONSOLIDATED PERFORMANCE HIGHLIGHTS FOR H1FY26

The consolidated results of SFL include the results of its standalone subsidiaries Sundaram Home Finance, Sundaram Asset Management and joint venture company Royal Sundaram General Insurance.

· The assets under management (AUM) in our lending and general insurance businesses stood at Rs. 83,586 crores as on 30th September 2025 as against Rs. 72,541 crores as on 30th September 2024, a growth of 15%. The assets under management of our asset management business stood at Rs. 82,608 crores as on 30th September 2025 as against Rs. 76,845 crores as on 30th September 2024.

· Profit after tax for H1FY26 grew by 11% to Rs. 963 crores as compared to Rs. 871 crores in H1FY25.

GROUP COMPANY PERFORMANCE HIGHLIGHTS

Our group companies continued to perform well.

· The asset management business closed the half year ended 30th September 2025 with assets under management of Rs. 82,608 crores (around 80% in equity) and consolidated profits from the asset management businesses were at Rs. 91 crores as against Rs. 68 crores in H1FY25.

· Royal Sundaram reported a Gross Written Premium (GWP) of Rs. 2,352 crores as compared to Rs. 2,053 crores in the previous year, representing a growth of 15%. The company reported a profit after tax of Rs. 121 crores for H1FY26 as against a profit of Rs. 126 crores in H1FY25.

· Sundaram Home Finance continued to grow strongly with disbursements up by 9% to Rs. 3,169 crores in H1FY26. The profit for H1FY26 was Rs. 137 crores, as against Rs. 111 crores in H1FY25.