Sundaram Finance Limited has informed the Exchange regarding 'Investor Presentation'.
SUNDARMFIN · price
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Awaiting price reaction for this filing.
Sundaram Finance reported Q1FY26 results with Assets Under Management growing 16.7% year-on-year to ₹53,278 crores, driven by ₹7,310 crores in disbursements (up 6% YoY). Net Interest Income jumped 25% to ₹781 crores, while Profit After Tax rose 39% to ₹429 crores from ₹308 crores in Q1FY25. The company highlighted meaningful improvements in yields and cost of borrowing management consistent with its AAA rating, with cost-to-income ratio improving to 29.84% from 32.90%. Return on Assets improved to 2.91% (vs 2.38%) and ROE rose to 16.7% (vs 13.6%), though core ROE excluding subsidiary investments dipped to 15.3% from 17.0%. Asset quality weakened slightly with Gross Stage 3 assets at 1.91% versus 1.56% a year ago, which management attributed to broader industry stress from fiscally weak state governments and delayed payments to MSMEs.
Strong profit growth and improved operational efficiency are positive for shareholders, though rising NPAs and weaker core ROE signal some underlying stress. The stock may react positively to the 39% PAT growth but investors should monitor the rising gross NPA trend.