Sundaram Finance has reported a strong start to FY27, with higher disbursements, growth in assets under management (AUM), improved asset quality and higher profitability during the quarter ended June 30, 2026.
The company recorded disbursements of Rs. 8,947 crore in the first quarter, registering a 22 per cent increase over Rs. 7,310 crore in the corresponding period last year. Assets under management grew 17 per cent year-on-year to Rs. 62,275 crore.
Net interest income increased 19 per cent to Rs. 925 crore, while profit from operations rose 37 per cent to Rs. 598 crore. Profit after tax climbed 22 per cent to Rs. 522 crore from Rs. 429 crore a year earlier.
Asset quality also improved during the quarter. Gross Stage 3 assets declined to 1.71 per cent from 1.91 per cent a year ago, while Net Stage 3 assets improved to 0.88 per cent from 1.08 per cent. Under the RBI’s asset classification norms for NBFCs, Gross NPA stood at 2.28 per cent and Net NPA at 1.35 per cent, both lower than the previous year.
Return on Assets improved to 3.06 per cent from 2.91 per cent, while Return on Equity increased to 17.69 per cent from 16.70 per cent. The Capital Adequacy Ratio remained healthy at 18.5 per cent, including Tier I capital of 16.9 per cent.
Harsha Viji, Executive Vice Chairman, Sundaram Finance, said the company delivered growth despite a challenging macroeconomic environment marked by geopolitical tensions, higher energy and commodity prices, supply chain disruptions and monsoon uncertainty. He added that the company remains focused on sustainable growth, strong asset quality and consistent profitability while its asset management, general insurance and home finance businesses continued to perform well.
Rajiv Lochan, Managing Director, Sundaram Finance, said the company delivered stronger growth, better asset quality and resilient profitability during the quarter. He noted that while geopolitical developments and monsoon conditions remain key external factors, Sundaram Finance is well positioned to strengthen its market presence through disciplined execution and a customer-focused approach.
On a consolidated basis, assets under management across the lending and general insurance businesses rose 15 per cent to Rs. 92,887 crore. The asset management business reported assets under management of Rs. 90,089 crore. Consolidated profit after tax increased 34 per cent to Rs. 636 crore.
Among the group’s businesses, Sundaram Home Finance reported 10 per cent growth in disbursements to Rs. 1,643 crore and profit of Rs. 85 crore, while Royal Sundaram General Insurance recorded Gross Written Premium of Rs. 1,380 crore and profit after tax of Rs. 135 crore. Sundaram Asset Management reported assets under management of Rs. 90,089 crore and consolidated profit of Rs. 51 crore.
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