Sundaram Finance reports 21% rise in Q2 profit to Rs 475 crore

Sundaram Finance posted a 21 percent jump in its standalone profit after tax at 475 crore rupees for the second quarter of the 2027 financial year. The Chennai-based financial company saw its loan disbursements grow by 28 percent to reach 10,355 crore rupees in the same quarter. Net interest income went up by 17 percent to 963 crore rupees, and operating profit increased by 11 percent to 557 crore rupees. Total assets under management grew by 19 percent to 65,992 crore rupees up to September 30, 2026.

Asset Quality

The company reported better asset quality as gross Stage 3 assets dropped to 1.84 percent from 2.03 percent last year. Net Stage 3 assets fell to 0.91 percent, and provision coverage improved to 51 percent.

Management Outlook

Executive Vice Chairman Harsha Viji noted that domestic economic momentum stayed strong despite global challenges like West Asia tensions and crude oil price changes. Managing Director Rajiv Lochan stated the firm entered the second half of the year with strong momentum and better asset quality, while keeping an eye on geopolitical tensions and monsoon impacts.

Context

Non-banking financial companies provide credit and financial services without holding a banking license, often supporting vehicle and asset purchases across India. Their performance generally reflects consumer demand and economic activity in sectors like transport and manufacturing.