Sundaram Finance Q2 FY27 results: net profit up 5.8% to ₹516.66 crore, revenue up 14.8%

How did Sundaram Finance perform in Q2 FY27?

Sundaram Finance reported consolidated Q2 FY27 revenue of ₹2,738 crore, up ₹351.91 crore or 14.8% from ₹2,386 crore in Q2 FY26. Total income rose 14.5% to ₹2,749.34 crore, while profit before tax increased 14.7% to ₹745.49 crore. Profit after tax was ₹516.66 crore, up 5.8% from ₹488.12 crore, and basic EPS was ₹46.88 compared with ₹44.29.

Against Q1 FY27, revenue increased 3.5% to ₹2,738 crore from ₹2,644 crore, but profit before tax fell 2.8% to ₹745.49 crore from ₹767.19 crore. Profit after tax declined 18.8% to ₹516.66 crore from ₹636.19 crore, and basic EPS fell to ₹46.88 from ₹57.71. EBITDA and EBITDA margin were not reported for either quarter.

On the standalone basis, revenue was ₹2,147.47 crore and profit after tax was ₹475.07 crore, compared with profit before exceptional items and tax of ₹394.20 crore in Q2 FY26. The consolidated results above are the primary basis for this report.

What changed in Sundaram Finance's costs and profit?

Total expenses rose 14.5% year on year to ₹2,004 crore from ₹1,751 crore. Finance costs increased 11.7% by ₹138.08 crore to ₹1,314 crore, employee costs increased 20.4% by ₹52.17 crore to ₹307.50 crore, and other expenses increased 18.5% by ₹17.15 crore to ₹109.64 crore. Depreciation increased 14.5% by ₹8.69 crore to ₹68.68 crore.

Other income fell 21.6%, or ₹3.25 crore, to ₹11.79 crore from ₹15.04 crore. There was no exceptional item in either Q2 FY27 or Q2 FY26. Tax expense increased 18.3%, or ₹29.18 crore, to ₹188.25 crore from ₹159.07 crore. As a result, profit after tax rose 5.8% against the 14.7% rise in profit before tax.

Sequentially, total expenses increased 6.2% to ₹2,004 crore from ₹1,886 crore. Finance costs rose 5.4%, or ₹67.51 crore, to ₹1,314 crore, while other income increased 28.0%, or ₹2.58 crore, to ₹11.79 crore. Tax expense fell 5.1% to ₹188.25 crore, while profit after tax declined 18.8% to ₹516.66 crore.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹5,381.68 crore, up ₹647.11 crore or 13.7% from ₹4,734.57 crore in H1 FY26. Total income rose 13.7% to ₹5,402.68 crore, while profit before tax increased 23.4% to ₹1,512.68 crore from ₹1,225.46 crore.

Profit after tax for the first half was ₹1,152.85 crore, up ₹189.52 crore or 19.7% from ₹963.33 crore in H1 FY26. Basic EPS rose to ₹104.59 from ₹87.41. Management separately stated in its presentation that H1 FY27 profit after tax was ₹997 crore, up 21% from ₹823 crore; the consolidated financial results use ₹1,152.85 crore.

What do the balance sheet and cash flow show?

Total assets rose to ₹92,689.92 crore on 30 September 2026 from ₹85,795.41 crore on 31 March 2026. Total equity increased to ₹16,058.63 crore from ₹14,893.65 crore, while cash fell to ₹232.89 crore from ₹525.62 crore. Borrowings were not reported in the supplied figures.

For H1 FY27, operating cash flow was negative ₹5,813.45 crore, compared with negative ₹3,063.93 crore in H1 FY26. Investing cash flow was positive ₹289.81 crore against negative ₹1,199.17 crore, while financing cash flow was ₹5,230.91 crore against ₹4,154.53 crore. Capital expenditure was ₹38.54 crore, compared with ₹25.51 crore.

How has Sundaram Finance done over the last 8 quarters?

Revenue increased in each of the last eight quarters year on year. It reached ₹2,737.55 crore in Q2 FY27, the highest quarterly revenue in the reported series, compared with the low of ₹2,190.31 crore in Q3 FY25. The current quarter marked an increase from ₹2,644.13 crore in Q1 FY27.

Profit after tax peaked at ₹636.19 crore in Q1 FY27 and fell to ₹516.66 crore in Q2 FY27. The low in the reported period was ₹455.47 crore in Q3 FY25, while Q2 FY26 profit was ₹488.12 crore. EBITDA margin was not available for the quarterly series, so no margin peak or trough can be stated.

Which businesses drove the quarter?

Asset Financing reported revenue of ₹2,514.07 crore and EBIT of ₹648.76 crore for Q2 FY27, with an EBIT margin of 25.8%. The filing’s comparative revenue and EBIT for Q2 FY26 were not supplied, so year-on-year growth for this segment cannot be stated.

Others reported revenue of ₹224.18 crore and EBIT of ₹96.23 crore, with an EBIT margin of 42.9%. Comparative Q2 FY26 revenue and EBIT were not supplied, so the filing does not provide figures for calculating the segment’s year-on-year growth.

What else did the company announce?

The board approved the proposed acquisition of 100% of Sundaram Alternate Assets Limited from Sundaram Asset Management Company Limited. The acquisition is subject to regulatory approvals, is proposed at a cost not exceeding ₹75 crore, and would make Sundaram Alternate Assets a direct wholly-owned subsidiary rather than a step-down subsidiary. The company said the objective was to simplify the group shareholding structure.

S. Viji resigned as Chairman and Non-Executive Director with effect from the close of the board meeting on 4 November 2026, citing age and other personal considerations. The board elected Independent Director R. Venkatraman as Chairman. Promoter group member Sriram Viji was appointed as an Additional Director, Non-Executive Non-Independent Director, subject to shareholder approval.

The board also approved the unaudited standalone and consolidated financial results for the quarter and half-year ended 30 September 2026. No dividend or fund-raising decision was stated in the supplied same-day filings.

What did Sundaram Finance's management say?

Management said H1 FY27 assets under management rose 19.1% to ₹65,992 crore, while disbursements increased 25% to ₹19,302 crore. It attributed AUM growth to higher auto and farm-equipment volumes and said profit growth benefited from lower cost of liabilities and improving asset quality. The presentation also said the branch network expanded to 811 branches.

Management said it was monitoring the monsoon deficit linked to El Nino conditions and the possible effect of rising inflation on asset quality. It also cited geopolitical uncertainty and described a transition into an upward interest-rate cycle. To optimise margins, management said it was maintaining a prudent focus on asset-class and customer-segment mix.

Management reported gross Stage 3 assets of 1.84% and net Stage 3 assets of 0.91%. It also disclosed that Royal Sundaram made an additional ₹66 crore provision for Motor TP claims under a Supreme Court judgment dated 11 June 2026. The presentation said Royal Sundaram’s combined operating ratio was 117.6%, compared with 117.5% in H1 FY26.

How did Sundaram Finance shares react?

Sundaram Finance shares were down 2.1% from the previous close on the reaction day, closing at ₹4,115.4 compared with ₹4,060.3. From the price when the filing appeared, the stock fell 2.6% after 15 minutes and 3.5% after 30 minutes. The NBFC sector’s median reaction-day move was 0.2%, leaving Sundaram Finance 2.3 percentage points behind it.

Earlier results-day reactions were mixed: the stock rose 2.8% on 3 August 2026 and fell 3.0% on 25 May 2026. It also rose 3.4% on 2 February 2026 and 3.1% on 3 November 2025, before falling 2.4% on 4 August 2025. Data for the next day and five days after the Q2 FY27 filing were not supplied.

How did other Non Banking Financial Company (NBFC) companies do?

Among 77 other NBFC companies compared, the median revenue growth was 21.6%, against Sundaram Finance’s 14.8% growth in Q2 FY27. Of the peers with a revenue-growth comparison, 31 grew more slowly than Sundaram Finance and 46 grew faster. The company itself was not included in those peer counts.

Profit increased for 56 of the 85 NBFC peers for which profit was compared. The peer comparison was available as of 5 November 2026.