CLSA has maintained its outperform rating on Shriram Finance with a target price of ₹840 per share after the lender reported a modest Q2FY26 earnings beat supported by lower credit costs and healthy loan growth.
The brokerage said assets under management (AUM) rose around 16% year-on-year, with disbursements up 8%, led by robust gold loan traction (+31%) and steady commercial and passenger vehicle segments (+14–15%). Margins improved by around 10 basis points sequentially, aided by a lower cost of funds, with further benefits expected as excess liquidity declined in late September.
Asset quality remained broadly stable, with gross stage-3 ratio at 4.6% and credit costs at 1.9%, below company guidance. CLSA also noted key leadership changes, with Parag Sharma, current MD and CFO, set to take over as Managing Director and CEO, alongside the appointment of two new COOs and a Chief Strategy Officer from within the senior team.
The brokerage said Shriram’s steady AUM growth, improving margins, and disciplined cost management position it well for sustained profitability in FY26–27.
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