Aug 03: The Board of Directors of Sundaram Finance Ltd. (SFL) approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, at its meeting held on August 3, 2026, in Chennai.
“Q1FY27 opened with stronger demand than Q1FY26, despite a more complex macro backdrop marked by West Asia tensions, higher energy and commodity prices, supply-chain disruption and monsoon uncertainty. In this environment, Team Sundaram delivered 17% AUM growth to Rs. 62,275 crores, improved asset quality with net stage 3 assets at 0.88% against 1.08% last year, and 22% year-on-year growth in profit after tax. Our Group companies in asset management, general insurance and home finance continued to report strong results. We remain committed to our time-tested approach of steady, sustainable growth, best-in-class asset quality and consistent profitability,” said Harsha Viji, Executive Vice Chairman.
AUM for Q1FY27 grew 17% to Rs. 62,275 crores. Disbursements for Q1FY27 recorded a growth of 22% over Q1FY26. Gross stage 3 assets as on June 30, 2026, stood at 1.71% with provision cover of 49% as against 1.91% as on June 30, 2025, with provision cover of 44%. Profits from operations performed strongly, growing by 37% in Q1FY27. Profit after tax registered a 22% rise in Q1FY27, with net profit at Rs. 522 crores. Return on assets closed at 3.06% in Q1FY27 as against 2.91% for Q1FY26, and capital adequacy at 18.5% remained quite comfortable.
Rajiv Lochan, Managing Director, stated, “Q1FY27 has been an encouraging quarter, with Sundaram Financedelivering stronger growth, improved asset quality and resilient profitability. The operating environment is turning more supportive for growth, even as key external monitorables such as geopolitical uncertainty and monsoon shortfalls remain. With our strong franchise, disciplined execution and customer-focused approach, Team Sundaram is well-positioned to deepen its presence and gain market share across the businesses in which we operate.”
STANDALONE PERFORMANCE HIGHLIGHTS FOR Q1FY27
· Disbursements for Q1FY27 grew by 22% to Rs. 8,947 crores as compared to Rs. 7,310 crores registered in Q1FY26.
· The assets under management grew by 17% to Rs. 62,275 crores as on 30th June 2026 as against Rs. 53,278 crores as on 30th June 2025.
· Net interest income (NII) grew by 19% to Rs. 925 crores in Q1FY27 from Rs. 781 crores in Q1FY26.
· Gross stage 3 assets as on 30th June 2026 stood at 1.71% with 49% provision cover as against 1.91% with provision cover of 44% as on 30th June 2025. Net stage 3 assets as on 30th June 2026 closed at 0.88% as against 1.08% as on 30th June 2025.
· The Gross and Net NPA, as per RBI’s asset classification norms for NBFCs, are 2.28% and 1.35% respectively as against 2.66% and 1.71% as of 30th June 2025.
· Cost to income ratio was at 30.70% in Q1FY27 as against 29.84% in Q1FY26.
· Profits from operations grew 37% to Rs. 598 crores in Q1FY27 as against Rs. 436 crores in Q1FY26.
· Profit after tax registered a growth of 22% rise in Q1FY27, with net profit at Rs. 522 crores as against Rs. 429 crores in Q1FY26.
· Return on assets (ROA) for Q1FY27 closed at 3.06% as against 2.91% for Q1FY26. Return on equity (ROE) was at 17.69% for Q1FY27 as against 16.70% for Q1FY26.
· Capital Adequacy Ratio stood at 18.5% (Tier I –16.9%) as of 30th June 2026 compared to 20.0% (Tier I – 17.3%) as of 30th Jun 2025.
CONSOLIDATED PERFORMANCE HIGHLIGHTS FOR Q1FY27
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. 92,887 crores as on 30th June 2026 as against Rs. 80,939 crores as on 30th June 2025, a growth of 15%. The assets under management of our asset management business stood at Rs. 90,089 crores as on 30th June 2026 as against Rs. 80,501 crores as on 30th June 2025.
· Profit after tax for Q1FY27 grew by 34% to Rs. 636 crores as compared to Rs. 475 crores in Q1FY26.
GROUP COMPANY PERFORMANCE HIGHLIGHTS
Our group companies continued to perform well.
The asset management business closed the quarter ended 30th June 2026 with assets under management of Rs. 90,089 crores (around 80% in equity) and consolidated profits from the asset management businesses were at Rs. 51 crores as against Rs. 45 crores in Q1FY26.
Royal Sundaram reported a Gross Written Premium (GWP) of Rs. 1,380 crores as compared to Rs. 1,289 crores in the previous year, representing a growth of 7%. The company reported a profit after tax of Rs. 135 crores for Q1FY27 as against a profit of Rs. 127 crores in Q1FY26.
Sundaram Home Finance disbursements grew by 10% to Rs. 1,643 crores in Q1FY27. The profit for Q1FY27 was Rs. 85 crores, as against Rs. 62 crores in Q1FY26. Gross stage 3 assets as on 30th June 2026 stood at 1.42% as against 1.63% as on 30th June 2025. Net stage 3 assets as on 30th June 2026 closed at 0.69% as against 0.96% as on 30th June 2025. The Gross and Net NPA, as per RBI’s asset classification norms, are 1.50% and 0.75% respectively as against 1.94% and 1.20% as of 30th June 2025.
