Sundaram Finance LimitedQ1 FY27 Results & Financial Update
Sundaram Finance Limited: Q1 FY27 consolidated results and company financials – revenue ₹2,644.13 Cr, PAT ₹636.19 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarter overview
Quarterly earnings analysis
Sundaram Finance reported a consolidated total revenue of INR 2,653.34 crores and consolidated profit after tax of INR 636.19 crores for the first quarter ended 30 June 2026.
Standalone disbursements for Q1 FY27 grew by 22% year-on-year to INR 8,947 crores, supported by robust commercial vehicle and automotive volumes across key operational regions.
Assets under management (AUM) expanded by 17% year-on-year to INR 62,275 crores on a standalone basis, while the broader TSF group lending and insurance AUM reached INR 92,887 crores.
Standalone net interest income (NII) registered a 19% increase to INR 925 crores, driven by portfolio expansion and stable credit deployment.
Asset quality remained resilient with standalone Gross Stage 3 assets improving to 1.71% with a 49% provision coverage, compared to 1.91% with 44% coverage in the corresponding period of the previous year.
Group entities demonstrated sound performance, with Sundaram Home Finance reporting disbursements of INR 1,643 crores and a PAT of INR 85 crores, while Royal Sundaram General Insurance posted a gross written premium of INR 1,380 crores.
Sundaram Finance Limited reported its consolidated financial results for the first quarter of fiscal year 2027 (ended 30 June 2026), posting total income of INR 2,653.34 crore.
Revenue from operations for the quarter stood at INR 2,644.13 crore, driven principally by robust interest income of INR 2,209.52 crore.
01 · Business model
What does Sundaram Finance do?
Sundaram Finance Limited is a prominent, diversified non-banking financial company (NBFC) founded in 1954, operating with a network of 790 branches and serving over 5.50 lakh lending customers and nearly 1 lakh depositors across India.
The company's primary business revolves around asset finance and commercial lending, covering commercial vehicles, cars and utility vehicles, construction equipment, tractors and farm equipment, SME finance, and working capital solutions.
Through its subsidiaries and joint ventures, the group extends its reach into home finance via Sundaram Home Finance, asset management through Sundaram Asset Management, and general insurance via Royal Sundaram General Insurance.
02 · Historical context
What shaped the business before this quarter
Established in 1954 by Late Sri T. S. Santhanam, Sundaram Finance has grown over seven decades into a trusted diversified financial services group rooted in conservative risk principles.
The company has expanded from its hire-purchase origins into housing loans, asset management, and general insurance through strategic subsidiaries and joint ventures.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q1 FY27 |
|---|---|
| Total income | ₹2,653.34 Cr |
| Interest income | ₹2,209.52 Cr |
| Other income | ₹9.21 Cr |
| Profit before tax | ₹767.19 Cr |
| Profit after tax | ₹636.19 Cr |
| EPS | ₹57.71 |
04 · Earnings & margin drivers
What drove earnings and margins
What drove net interest income and earnings
Standalone disbursements grew 22% year-on-year to INR 8,947 crores, supported by stronger SIAM commercial vehicle and car sales volumes.
Standalone AUM grew by 17% year-on-year to INR 62,275 crores, reflecting wider origination across vehicle and SME asset classes.
Interest income contributed INR 2,209.52 crore to the consolidated top-line during the quarter.
Other operational sources added INR 9.21 crore, bringing total revenue from operations to INR 2,644.13 crore.
NIM, spread, funding cost and credit cost
Standalone net interest income rose 19% year-on-year to INR 925 crores, underpinned by active cost-of-borrowing management aligned with AAA credit ratings.
Standalone cost-to-income ratio stood at 30.70% for Q1 FY27 compared to 29.84% in Q1 FY26.
Borrowing and funding expenses stood at INR 1,246.54 crore for the quarter, forming a major component of operational outlays.
Depreciation charges accounted for INR 59.54 crore during the period.
05 · Loan growth, sanctions & disbursements
How the lending book is moving
The company serves over 5.50 lakh lending customers and nearly 1 lakh fixed deposit holders across India.
06 · Portfolio mix & lending exposure
Where the loan book is concentrated
Segments and products
Reported segment revenue of INR 2,454.85 crores and segment results of INR 702.91 crores for the quarter ended 30 June 2026.
Contributed segment revenue of INR 189.99 crores and segment results of INR 66.64 crores.
Geography and market mix
The company maintains a nationwide branch network of 790 branches, with the Southern region comprising 379 branches and North, West, and East regions accounting for the remainder.
07 · Asset quality & capital strength
How credit quality and balance-sheet capacity changed
Asset quality, stages and credit risk
Operational branch count stood at 790 branches alongside an employee headcount of 8,000 staff members as of 30 June 2026.
08 · Strategy & portfolio evolution
How the lending mix and strategic agenda are changing
The company acquired 2,675 loan accounts amounting to INR 257.15 crores from its subsidiary company during the quarter with a 90% retention of beneficial economic interest.
09 · Reported developments
What changed operationally
Gross Stage 3 assets improved to 1.71% as of 30 June 2026 with a provision coverage of 49%, down from 1.91% in the prior year period.
Sundaram Home Finance reported a PAT of INR 85 crores (up from INR 62 crores) and Royal Sundaram General Insurance reported a PAT of INR 135 crores.
10 · Funding & balance sheet
How funding, liquidity and capital support the loan book
Capital allocation & funding
Proceeds from private placements of Secured Redeemable Non-Convertible Debentures totaling INR 2,775 crores across multiple tranches during the quarter were fully utilized for disclosed business purposes with no deviations.
Standalone Capital Adequacy Ratio stood at 18.5% (Tier I at 16.9%), remaining well above regulatory requirements.
11 · Beyond the numbers
What changed beyond the numbers
Credit Ratings
The company retains AAA (Stable) credit ratings from ICRA and CRISIL across its long-term borrowings, debentures, and fixed deposits.
Regulatory Filing Submission
The financial results for the quarter ended 30 June 2026 were officially filed through the NSE XBRL reporting mechanism.
12 · Key Q&A
The quarter, answered directly
What does Sundaram Finance do?
Sundaram Finance Limited is a prominent, diversified non-banking financial company (NBFC) founded in 1954, operating with a network of 790 branches and serving over 5.50 lakh lending customers and nearly 1 lakh depositors across India.
What is the clearest takeaway from Q1 FY27?
Sundaram Finance reported a consolidated total revenue of INR 2,653.34 crores and consolidated profit after tax of INR 636.19 crores for the first quarter ended 30 June 2026.
What drove earnings or loan-book movement?
Standalone disbursements grew 22% year-on-year to INR 8,947 crores, supported by stronger SIAM commercial vehicle and car sales volumes.
What mattered most for margins, funding or credit cost?
Standalone net interest income rose 19% year-on-year to INR 925 crores, underpinned by active cost-of-borrowing management aligned with AAA credit ratings.
What changed operationally beyond the headline numbers?
Operational branch count stood at 790 branches alongside an employee headcount of 8,000 staff members as of 30 June 2026.
What should the next disclosure help confirm?
Monitor the trajectory of Gross Stage 3 and Net Stage 3 asset ratios across subsequent quarters.
13 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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14 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Asset Quality Trends: Monitor the trajectory of Gross Stage 3 and Net Stage 3 asset ratios across subsequent quarters.
- 02
Disbursement Momentum: Track retail and commercial vehicle disbursement growth against macroeconomic conditions and monsoon progress.
- 03
Subsequent Quarter Disclosures: Monitor upcoming exchange filings for comparative trend analysis as multi-quarter data becomes available.
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