Standalone Financial and Operational Performance for H1FY27 (Half-Year Ended September 30, 2026)

Disbursements and AUM Growth:

  • Disbursements for H1FY27 grew by 25% Year-on-Year (YoY) to ₹19,302 crore, compared to ₹15,423 crore in H1FY26.
  • Disbursements for Q2FY27 grew by 28% YoY to ₹10,355 crore, compared to ₹8,113 crore in Q2FY26.
  • The H1FY27 disbursement figure includes an acquisition of loans amounting to ₹726 crore from subsidiary Sundaram Home Finance Limited.
  • Assets Under Management (AUM) grew by 19% to ₹65,992 crore as of September 30, 2026, from ₹55,419 crore a year ago.

Profitability:

  • Profit After Tax (PAT) registered a growth of 21% in H1FY27, with net profit at ₹997 crore, compared to ₹823 crore in H1FY26.
  • For Q2FY27, PAT grew 21% to ₹475 crore.
  • Profits from operations grew 23% to ₹1,154 crore in H1FY27 from ₹937 crore in H1FY26.
  • For Q2FY27, profits from operations grew 11% to ₹557 crore.
  • Net Interest Income (NII) grew by 18% to ₹1,888 crore in H1FY27 from ₹1,603 crore in H1FY26.
  • Q2FY27 NII growth was 17% to ₹963 crore.

Asset Quality and Provisions:

  • Gross Stage 3 assets stood at 1.84% as of September 30, 2026, with a provision cover of 51%. This improved from 2.03% with a 45% provision cover as of September 30, 2025.
  • Net Stage 3 assets closed at 0.91% as of September 30, 2026, improved from 1.13% a year ago.
  • As per RBI's asset classification norms for NBFCs, Gross NPA was 2.38% and Net NPA was 1.35% as of September 30, 2026, improved from 2.80% and 1.79% respectively a year ago.

Ratios and Capital:

  • Return on Assets (ROA) for H1FY27 closed at 2.86%, up from 2.72% for H1FY26.
  • Return on Equity (ROE) was at 16.75% for H1FY27, up from 15.91% for H1FY26.
  • Cost to income ratio was at 29.40% in H1FY27, slightly improved from 29.60% in H1FY26.
  • Capital Adequacy Ratio stood at 18.5% (Tier I at 17.0%) as of September 30, 2026, compared to 19.3% (Tier I at 16.9%) a year ago.

Consolidated Performance Highlights for H1FY27

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

  • The consolidated Assets Under Management (AUM) for the lending and general insurance businesses stood at ₹97,709 crore as of September 30, 2026, a growth of 17% from ₹83,586 crore a year ago.
  • The assets under management of the asset management business stood at ₹90,994 crore as of September 30, 2026, up from ₹82,608 crore a year ago.
  • Consolidated Profit After Tax for H1FY27 grew by 20% to ₹1,153 crore, compared to ₹963 crore in H1FY26.

Group Company Performance Highlights

Sundaram Asset Management:

  • Assets Under Management closed at ₹90,994 crore for the half-year ended September 30, 2026, with around 80% in equity.
  • Consolidated profits from the asset management businesses were ₹104 crore, up from ₹91 crore in H1FY26.

Royal Sundaram General Insurance:

  • Gross Written Premium (GWP) was ₹2,750 crore, representing a growth of 17% over the previous year's ₹2,352 crore.
  • Profit After Tax was ₹54 crore for H1FY27, down from ₹121 crore in H1FY26.
  • The company made an additional provision of ₹66 crore during H1FY27 for Motor TP claims. This was pursuant to a Supreme Court judgment dated June 11, 2026 (Shishupal), which recognized the economic value of unpaid domestic work by homemakers for computation of compensation under the Motor Vehicles Act.

Sundaram Home Finance:

  • Disbursements grew by 21% to ₹3,827 crore in H1FY27.
  • Profit was ₹175 crore, up from ₹137 crore in H1FY26.
  • Gross Stage 3 assets stood at 1.39% as of September 30, 2026, compared to 1.24% a year ago.
  • Net Stage 3 assets closed at 0.73%, compared to 0.62% a year ago.
  • As per RBI's asset classification norms, Gross NPA was 1.47% and Net NPA was 0.79% as of September 30, 2026, improved from 1.54% and 0.85% a year ago.

Management Commentary

Executive Vice Chairman Harsha Viji commented on the strong domestic economic momentum in Q2FY27 despite a challenging global environment marked by West Asia tensions, crude oil volatility, and tighter financial conditions. He highlighted the delivery of 19% AUM growth, improved asset quality, and 21% YoY PAT growth.

Managing Director Rajiv Lochan provided a constructive outlook for H2FY27, coupled with a need to monitor external factors including geopolitical tensions, monetary policy direction, and the impact of a below-normal monsoon on sentiment. The focus for H2 is stated to be on sustaining growth, further improving asset quality, and building resilience in profitability through disciplined pricing, optimal asset mix, and early intervention on collections.