Financial Performance Overview

Sundaram Finance reported audited financial results for the quarter and year ended March 31, 2026, showing strong growth across key metrics.

Assets Under Management (AUM) & Disbursements:

  • FY26 AUM grew 16.4% to ₹59,908 crores from ₹51,476 crores in FY25
  • FY26 disbursements grew 14% to ₹32,321 crores from ₹28,405 crores in FY25
  • Q4FY26 disbursements grew 17% YoY to ₹8,051 crores from ₹6,873 crores in Q4FY25

Profitability Metrics:

  • Profit after tax (PAT) for FY26 grew 19% to ₹1,834 crores from ₹1,543 crores in FY25
  • Q4FY26 PAT grew 11% YoY to ₹608 crores
  • Profits from operations grew 18% to ₹2,151 crores in FY26 from ₹1,825 crores in FY25
  • Q4FY26 profits from operations grew 14% to ₹622 crores
  • Net interest income (NII) grew 21% to ₹3,376 crores in FY26 from ₹2,793 crores in FY25
  • Q4FY26 NII grew 20% to ₹901 crores

Asset Quality Indicators:

  • Gross Stage 3 assets stood at 1.44% (same as March 31, 2025) with provision cover of 53% vs 49% last year
  • Net Stage 3 assets improved to 0.69% from 0.75% as of March 31, 2025
  • As per RBI's asset classification norms for NBFCs: Gross NPA 2.14% (2.17% last year), Net NPA 1.27% (1.38% last year)
  • The Company refined its methodology for computing Expected Credit Loss (ECL) using more recent historical data and machine learning-based model enhancements

Efficiency & Return Ratios:

  • Cost to income ratio improved to 28.71% in FY26 from 30.80% in FY25
  • Return on assets (ROA) improved to 3.03% for FY26 from 2.85% for FY25
  • Return on equity (ROE) was 17.49% for FY26 vs 16.30% for FY25
  • Including impact of new Labour Codes, ROA and ROE for FY26 were 2.94% and 17.00% respectively

Capital Position:

  • Capital Adequacy Ratio stood at 19.1% (Tier I – 17.2%) as of March 31, 2026 vs 20.4% (Tier I – 17.4%) as of March 31, 2025

Exceptional Items & Dividend:

  • The Company recognized ₹75 crores under "Exceptional Items" for incremental impact of new Labour Codes
  • Declared final dividend of 240% (₹24 per share)
  • Higher dividend income contributed to PAT growth

Consolidated Performance Highlights

The consolidated results include Sundaram Home Finance, Sundaram Asset Management, and joint venture Royal Sundaram General Insurance:

  • Consolidated AUM in lending and general insurance businesses stood at ₹89,541 crores vs ₹78,145 crores last year, growth of 15%
  • Asset management business AUM stood at ₹77,457 crores vs ₹71,826 crores last year
  • Consolidated PAT for FY26 grew 10% to ₹2,059 crores from ₹1,879 crores in FY25, after considering ₹76 crores under "Exceptional Items" for Labour Codes impact

Group Company Performance

Sundaram Asset Management:

  • AUM of ₹77,457 crores (around 80% in equity) as of March 31, 2026
  • Consolidated profits from asset management businesses at ₹174 crores vs ₹154 crores in FY25

Royal Sundaram General Insurance:

  • Gross Written Premium (GWP) grew 14% to ₹4,638 crores from ₹4,065 crores previous year
  • PAT of ₹107 crores for FY26 vs ₹133 crores in FY25

Sundaram Home Finance:

  • Disbursements grew 4% to ₹6,805 crores in FY26
  • Profit of ₹282 crores for FY26 vs ₹245 crores in FY25
  • Gross Stage 3 assets at 1.11% (1.02% last year), Net Stage 3 assets at 0.51% (0.53% last year)
  • As per RBI norms: Gross NPA 1.21% (1.33% last year), Net NPA 0.59% (0.77% last year)

Management Commentary

Executive Vice Chairman Harsha Viji noted Q4FY26 witnessed continued improvement in economic environment following GST 2.0 reforms effected in September 2025. H1FY26 witnessed trade tariff complications with muted demand, while H2FY26 gathered steam spurred by monetary policy transmission and fiscal policy measures.

Managing Director Rajiv Lochan stated performance was well balanced across growth, asset quality and profitability. The company remains optimistic about India's macroeconomic fundamentals supported by resilient domestic consumption, sustained public capital expenditure, and gradual revival in private investment. While geopolitical uncertainties remain monitorable, the company plans to gain market share, maintain best-in-class asset quality and operating expenses, and deliver sustainable profit growth.

Company Background

Sundaram Finance, established in 1954, provides financing for commercial vehicles, cars & utility vehicles, tractors and farm equipment, construction equipment, SME finance, and working capital products. Through subsidiaries, it offers home finance, loans against property, mutual funds, investment management, and general insurance products. The company has over 750 branches nationwide, over 1 lakh depositors, and over 5 lakh lending customers.