Shriram Finance Shares Hit 11-Month Low
Shares of Shriram Finance fell as much as 6.13% to ₹810.20 on Monday, reaching an 11-month low after the Indian non-bank lender lowered its loan growth forecast and warned of rising credit costs. The decline extended the company’s losses for an eighth consecutive trading session, despite reporting better-than-expected second-quarter profits.
The company reduced its assets under management growth forecast for fiscal 2027 to 15%–17%, down from 18%, citing weak monsoon conditions and geopolitical uncertainty. Drought-related financial pressures among borrowers in Maharashtra, Karnataka and Telangana have raised concerns about loan repayments. Analysts expect credit costs to remain elevated over the next one to two quarters.
Despite these challenges, Shriram Finance reported a nearly 60% increase in second-quarter profit to ₹36.77 billion, exceeding analysts’ expectations of ₹35.46 billion. However, brokerages Jefferies and JM Financial lowered their target prices amid concerns over rising loan delinquencies and asset quality, highlighting continued risks to the lender’s growth outlook.
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