Shriram Finance Ltd Q2 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Chintan Joshi - Autonomous Research - Analyst : Can I ask on two aspects, your net interest margin and your growth outlook. On net interest margin, could you give us some guidance on where you think the exit run rate on NIMs would be by the time you reach 4Q? I see that you have used up your excess liquidity, but it is not showing up in your NIMs currently. Was that reduction coming in late in September? That would be my first question, and then I'll ask you on growth as well.

Question: Chintan Joshi - Autonomous Research - Analyst : Okay. And how should we think about the next year? You are growing new vehicles a little bit more than a -- Should we see some pressure next year? Or you have more than enough cushion on cost of funds to offset that?

Question: Chintan Joshi - Autonomous Research - Analyst : Okay. And if you do get a ratings upgrade, does that help you change your business mix downward? Or irrespective of the rating upgrades your margin, you want to keep it stable? How do you think about it?

Question: Chintan Joshi - Autonomous Research - Analyst : Understood. Okay. And then on growth, could you give us some idea of what you're thinking about the second half of the year and FY27? If you could also comment about to activity levels, that would be helpful.

Question: Rajiv Mehta - Yes Bank Ltd - Analyst : Congratulations on a strong performance. Sir, firstly, on asset quality, what drove a strong collection performance in early buckets across your main products? Because when I calculate the flow rates into Stage two, they seem to be much better in Q2 versus Q1. So can you give us some color about how the income liquidity and leverage of the customer moved in this quarter, which may have helped you in collecting better? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 31, 2025 / 1:30PM, SHMF.NS - Q2 2026 Shriram Finance Ltd Earnings Call

Question: Rajiv Mehta - Yes Bank Ltd - Analyst : Okay. And sir, in the light of reduction in the value of vehicles, now how do we see the traction -- growth traction in used CV and PV likely getting impacted in the next couple of quarters? And to respond to it, do we plan to weak our valuation or ABB practices?

Question: Raghav Garg - Ambit Capital Pvt Ltd - Analyst : Sir, I have two, three questions. One, I remember you were saying that the transactions in market has been low. But when I look at your prostate CV portfolio that has increased from 11% in the fourth quarter to about 14% now in this quarter. I'm just trying to understand, despite you mentioning about low market volumes, how is it that the growth rate has increased? If you can give some color maybe some bifurcation of value growth and volume growth? That's my first question. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 31, 2025 / 1:30PM, SHMF.NS - Q2 2026 Shriram Finance Ltd Earnings Call

Question: Raghav Garg - Ambit Capital Pvt Ltd - Analyst : Sir, what would have been the average price growth for a used truck that you would have financed, just --

Question: Raghav Garg - Ambit Capital Pvt Ltd - Analyst : Understood. Sir, my second question is on the asset quality. So during this quarter, multiple finances have said that there is some stress in the CV portfolio. And then when I look at your number also, slippage has gone up, but not materially it seems. What are some of your observations around branches and from the ground about your customers' ability to earn and service their loans. And I think you've partly answered in the previous question about your overall asset quality outlook. But I think just some of your thoughts on what's happening on the ground with respect to truck utilization and all will be very helpful.

Question: Raghav Garg - Ambit Capital Pvt Ltd - Analyst : Understood. Sir, can I ask one more question, please?

Question: Raghav Garg - Ambit Capital Pvt Ltd - Analyst : Yes. Sir, the Shriram Automotive revenues, they've been growing at 20%, 30% since last two quarters. Does it in any way mean that your reposition activity has gone up or that's not the case?

Question: Shubhranshu Mishra - PhillipCapital (India) Pvt Ltd - Analyst : So two or three questions. The first one is on the small commercial like commercial rates. How do we look at the asset quality there? Are the SRPs under cash flow pressure? Second is on the passenger vehicles, we've had various OEMs like talking about 6% to 7% volume growth in FY27. However, have the OEMs come back to you speaking about price increases from January '26 onwards because with GST rate cut would have put a five, six I'm talking about the new vehicles here. And again, in terms of new vehicles, how do we look at 50 government and more? These are my questions. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 31, 2025 / 1:30PM, SHMF.NS - Q2 2026 Shriram Finance Ltd Earnings Call

Question: Shubhranshu Mishra - PhillipCapital (India) Pvt Ltd - Analyst : And commercial vehicle asset quality of the cash flows of --

Question: Shubhranshu Mishra - PhillipCapital (India) Pvt Ltd - Analyst : Sir, just one clarification on the passenger vehicle pricing. Actually, there will be a price deflator because the GST late cut and you guys would be definitely having PIV discussion to the OEMs. So they haven't -- what you're saying is that they haven't communicated anything about price increases from -- because they might want to cover up the price this year?

Question: Shreepal Doshi - Equirus Securities Pvt Ltd - Analyst : Congrats on a good set of numbers. My question was pertaining to pricing side. So we've already started seeing cost benefit and also it liquidity on the balance sheet coming moderating on a Q-on-Q basis. So -- on the lending rate side, are we expecting -- or are we building in any rate cut or passing of rate cut benefit to the end customer, let's say, in 3Q, 4Q time period? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 31, 2025 / 1:30PM, SHMF.NS - Q2 2026 Shriram Finance Ltd Earnings Call

Question: Shreepal Doshi - Equirus Securities Pvt Ltd - Analyst : So in that case, and by when would we see maximum benefit on the cost coming to us, let's say, with respect to some time line?

Question: Shreepal Doshi - Equirus Securities Pvt Ltd - Analyst : Got it. And the other question was pertaining to rollout of all the products at Shriram branches. So could you please give us an update on how many branches will see MSME gold, PV and PL being rolled out? Or what is the status there?

Question: Shreepal Doshi - Equirus Securities Pvt Ltd - Analyst : Got it, sir. And then just one last question was pertaining to the number of customers. So there has been a decline on a sequential basis. What explains that? There's -- I mean, say, so it's 9.66% last quarter, it was 9.72%. What explains this?

Question: Prithviraj Patel - Investec - Analyst : I just wanted to know if the segmental -- if we have the segmental disbursement numbers, and the total disbursement number for this quarter? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 31, 2025 / 1:30PM, SHMF.NS - Q2 2026 Shriram Finance Ltd Earnings Call

Question: Sonal Gandhi - Asian Markets Securities Pvt Ltd - Analyst : So I have two questions. Am I audible?

Question: Sonal Gandhi - Asian Markets Securities Pvt Ltd - Analyst : Yes. So on the subsidiary, so what has been the thought process behind investing in Shriram Overseas Investment Limited? And if you could just give us some plan that what do you plan to do in the subsidiary? And the second one is on public deposits. So that is already making us a 28% of your order mix today. So how much further could do you have to increase this? And maybe after six, nine months or maybe after a year can also limit which are the instruments through which you plan to finance the side or the bottom?

Question: Sonal Gandhi - Asian Markets Securities Pvt Ltd - Analyst : So sir, if you could just help us what is the landed rate for the potent borrowing strategy? And also entities, we can look up a difficult helped that ample -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 31, 2025 / 1:30PM, SHMF.NS - Q2 2026 Shriram Finance Ltd Earnings Call