News ArticleSundaram Finance Posts 21% Profit Growth and 19% AUM Increase in H1FY27
Disbursements rise 25% to Rs. 19,302 crores with net stage 3 assets improving to 0.91% as of September 2026
Sundaram Finance announced its unaudited standalone and consolidated financial results for the half year ended September 30, 2026, reporting a 21% increase in profit after tax to Rs. 997 crores and a 19% growth in assets under management to Rs. 65,992 crores. Disbursements grew 25% to Rs. 19,302 crores, while asset quality improved with net stage 3 assets declining to 0.91%. The company sustained a return on assets of 2.86% and maintained a comfortable capital adequacy ratio of 18.5%.
Sundaram Finance Limited
General / Other
Sundaram Finance Limited reported a 21% increase in profit after tax to Rs. 997 crores for the half year ended September 30, 2026, driven by a 19% growth in assets under management to Rs. 65,992 crores and a 25% rise in disbursements to Rs. 19,302 crores. The company also improved its asset quality with net stage 3 assets reducing to 0.91%.
The company’s disbursements grew by 28% year on year in Q2FY27 to Rs. 10,355 crores, contributing to the half-year growth. Gross stage 3 assets declined to 1.84% with a provision coverage of 51%, compared to 2.03% and 45% respectively a year earlier.
Profit from operations increased by 23% in H1FY27 to Rs. 1,154 crores, while net interest income rose 18% to Rs. 1,888 crores. Return on assets improved to 2.86% compared to 2.72% in the prior year period, and the capital adequacy ratio stood at a solid 18.5%.
Consolidated profits after tax for H1FY27 were Rs. 1,153 crores, up 20% from Rs. 963 crores a year ago. The company’s subsidiaries, including Sundaram Home Finance and Royal Sundaram General Insurance, also contributed to strong performances in their respective businesses.
Highlights
- Disbursements for H1FY27 reached Rs. 19,302 crores, up 25% year on year.
- Assets under management grew 19% to Rs. 65,992 crores as of September 30, 2026.
- Profit after tax increased 21% to Rs. 997 crores for the half year.
- Gross stage 3 assets reduced to 1.84% from 2.03% with 51% provision coverage.
- Net stage 3 assets improved to 0.91% from 1.13% compared to previous year.
- Return on assets rose to 2.86%, and capital adequacy remained comfortable at 18.5%.
Key Data Snapshot
What happened
- Sundaram Finance reported a 21% year-on-year increase in profit after tax to Rs. 997 crores for H1FY27.
- Disbursements increased by 25% to Rs. 19,302 crores, including Rs. 726 crores in loans acquired from Sundaram Home Finance Limited.
- Assets under management grew by 19% to Rs. 65,992 crores as of September 30, 2026.
- The company improved asset quality with net stage 3 assets at 0.91%, down from 1.13% the previous year.
Key details
- Gross stage 3 assets declined to 1.84% with a provision cover of 51%, compared to 2.03% and 45% a year earlier.
- Net interest income increased by 18% to Rs. 1,888 crores in H1FY27.
- Profit from operations grew 23% to Rs. 1,154 crores in H1FY27.
- Return on assets improved to 2.86%, and return on equity rose to 16.75%.
- Capital adequacy ratio stood at 18.5%, compared to 19.3% in the previous year period.
- Consolidated profit after tax for the group was Rs. 1,153 crores, a 20% rise over H1FY26.
Business impact
- The company’s subsidiaries including Sundaram Home Finance and Royal Sundaram General Insurance contributed to robust group results.
- Sundaram Home Finance grew disbursements by 21% to Rs. 3,827 crores and reported a profit of Rs. 175 crores in H1FY27.
- Royal Sundaram General Insurance recorded a 17% growth in gross written premium to Rs. 2,750 crores but reported a reduced profit of Rs. 54 crores due to additional provisioning for motor third party claims mandated by a Supreme Court judgement.
Management commentary
- Executive Vice Chairman Harsha Viji highlighted strong domestic economic momentum despite global challenges, emphasizing steady growth and asset quality.
- Managing Director Rajiv Lochan noted a constructive outlook for H2FY27 with focus on sustaining growth, improving asset quality, and disciplined pricing amid geopolitical and monetary policy uncertainties.
Regulatory and governance context
- Additional provision of Rs. 66 crores was made for Motor Third Party claims following the Supreme Court judgment dated June 11, 2026 (Shishupal case).
- Asset classification and provisioning norms conform to RBI guidelines for NBFCs.
Highlights
- Disbursements for H1FY27 reached Rs. 19,302 crores, up 25% year on year.
- Assets under management grew 19% to Rs. 65,992 crores as of September 30, 2026.
- Profit after tax increased 21% to Rs. 997 crores for the half year.
- Gross stage 3 assets reduced to 1.84% from 2.03% with 51% provision coverage.
- Net stage 3 assets improved to 0.91% from 1.13% compared to previous year.
- Return on assets rose to 2.86%, and capital adequacy remained comfortable at 18.5%.
Disclosures
- Reserve Bank of India (RBI) asset classification and provisioning norms for NBFCs
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