Financial Performance Highlights - Standalone (Q1FY27)

Growth Metrics:

  • Disbursements grew by 22% to ₹8,947 crores in Q1FY27 compared to ₹7,310 crores in Q1FY26
  • Assets Under Management (AUM) grew 17% to ₹62,275 crores as of June 30, 2026, from ₹53,278 crores as of June 30, 2025
  • Net Interest Income (NII) grew 19% to ₹925 crores from ₹781 crores YoY

Profitability:

  • Profit from operations grew 37% to ₹598 crores in Q1FY27 from ₹436 crores in Q1FY26
  • Profit After Tax (PAT) registered 22% growth to ₹522 crores from ₹429 crores YoY
  • Return on Assets (ROA) improved to 3.06% from 2.91% in Q1FY26
  • Return on Equity (ROE) improved to 17.69% from 16.70% in Q1FY26
  • Cost to income ratio was 30.70% compared to 29.84% in Q1FY26

Asset Quality:

  • Gross Stage 3 assets stood at 1.71% with 49% provision cover (1.91% with 44% provision cover as of June 30, 2025)
  • Net Stage 3 assets improved to 0.88% from 1.08% YoY
  • Gross NPA (RBI norms) at 2.28% (2.66% as of June 30, 2025)
  • Net NPA (RBI norms) at 1.35% (1.71% as of June 30, 2025)

Capital Adequacy:

  • Capital Adequacy Ratio stood at 18.5% (Tier I – 16.9%) compared to 20.0% (Tier I – 17.3%) as of June 30, 2025

Consolidated Performance Highlights (Q1FY27)

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

  • Combined AUM in lending and general insurance businesses stood at ₹92,887 crores, growing 15% from ₹80,939 crores YoY
  • Assets under management of asset management business stood at ₹90,089 crores compared to ₹80,501 crores YoY
  • Consolidated PAT grew 34% to ₹636 crores from ₹475 crores in Q1FY26

Group Company Performance

Sundaram Asset Management:

  • Assets under management of ₹90,089 crores (approximately 80% in equity)
  • Consolidated profits from asset management businesses at ₹51 crores compared to ₹45 crores in Q1FY26

Royal Sundaram General Insurance:

  • Gross Written Premium (GWP) of ₹1,380 crores, representing 7% growth from ₹1,289 crores YoY
  • PAT of ₹135 crores compared to ₹127 crores in Q1FY26

Sundaram Home Finance:

  • Disbursements grew 10% to ₹1,643 crores in Q1FY27
  • PAT of ₹85 crores compared to ₹62 crores in Q1FY26
  • Gross Stage 3 assets at 1.42% (1.63% as of June 30, 2025)
  • Net Stage 3 assets at 0.69% (0.96% as of June 30, 2025)
  • Gross NPA (RBI norms) at 1.50% (1.94% as of June 30, 2025)
  • Net NPA (RBI norms) at 0.75% (1.20% as of June 30, 2025)

Management Commentary

Harsha Viji, Executive Vice Chairman: Noted that Q1FY27 opened with stronger demand than Q1FY26 despite a complex macro backdrop marked by West Asia tensions, higher energy and commodity prices, supply-chain disruption, and monsoon uncertainty. Emphasized commitment to steady, sustainable growth, best-in-class asset quality, and consistent profitability.

Rajiv Lochan, Managing Director: Stated that Q1FY27 has been an encouraging quarter with stronger growth, improved asset quality, and resilient profitability. Mentioned that the operating environment is turning more supportive for growth, though key external monitorables such as geopolitical uncertainty and monsoon shortfalls remain.

Company Overview

Sundaram Finance Limited, established in 1954, has grown into one of the most trusted and diversified financial services groups in India providing financing for commercial vehicles, cars & utility vehicles, tractors and farm equipment, construction equipment, SME finance, and working capital products. Through subsidiaries and group companies, the company offers home finance, loans against property, mutual funds, investment management solutions, and general insurance products. The company has a nationwide presence of 790 branches, nearly 1 lakh depositors, and over 5.50 lakh lending customers.