Sundaram Finance Approves Unaudited Q3FY26 Results; PAT at INR 403 Cr
Unaudited standalone & consolidated financial results for the nine months ended December 31, 2025
Feb 2: The Board of Directors of Sundaram Finance Ltd. (SFL) approved the unaudited standalone and consolidated financial results for the nine months ended December 31, 2025, at its meeting held on February 2, 2026, in Chennai.
“Q3FY26 witnessed the macroeconomic tailwinds on the back of the announcement of a robust 8.2% real GDP growth in Q2 and the impact of the September 22nd, 2025, initiation of GST 2.0 reforms. While private sector capital expenditure continued to remain muted, consumption activity picked up across sectors, aided by the GST rate reduction and the sentimental festival season demand. Under these circumstances, Team Sundaram has delivered 16.0% growth in AUM to Rs. 58,236 crores, asset quality with net stage 3 assets at 1.06% vs 0.97% last year and profits after tax growth of 23% year-on-year. Our Group companies in asset management, general insurance and home finance have continued to record strong results. We continue to rely on our time-tested approach of steady and sustainable growth with best-in-class asset quality and consistent profitability,” said Harsha Viji, Executive Vice Chairman.
AUM for 9MFY26 grew 16% to Rs. 58,236 crores. Disbursements for 9MFY26 recorded a growth of 13% over 9MFY25 and for Q3FY26, disbursements have grown 14% Y-o-Y. Gross stage 3 assets as on December 31, 2025, stood at 1.91% with provision cover of 45% as against 1.70% as on December 31, 2024, with provision cover of 43%. Profits from operations performed strongly, growing by 20% in 9MFY26 and 27% in Q3FY26. Profit after tax registered a 23% rise in 9MFY26, with net profit at Rs. 1,226 crores. During the period, the Company has considered Rs. 66 crores under “Exceptional Items” for the incremental impact of the new Labour Codes. Consequently, for Q3, the net profit grew by 15% to Rs. 403 crores. Return on assets closed at 2.67% in 9MFY26 as against 2.49% for 9MFY25 and capital adequacy at 19.1% remained quite comfortable.
Rajiv Lochan, Managing Director, stated, “The morale of team Sundaram has buoyed substantially following a well-executed festival plan across all regions and businesses. Looking ahead, rural sentiment is expected to remain buoyant, while urban sentiment is expected to improve on the GST rate cut benefits. As economic activity picks up, we are well-positioned to deliver the unparalleled Sundaram experience to our customers & partners and extend our market share across geographies.”
STANDALONE PERFORMANCE HIGHLIGHTS FOR 9MFY26
· Disbursements for 9MFY26 grew by 13% to Rs. 24,270 crores as compared to Rs. 21,532 crores registered in 9MFY25. Disbursements for Q3FY26 grew by 14% to Rs. 8,847 crores as compared to Rs. 7,764 crores registered in Q3FY25.
· The assets under management grew by 16% to Rs. 58,236 crores as on 31st December 2025 as against Rs. 50,199 crores as on 31st December 2024.
· Net interest income (NII) grew by 21% to Rs. 2,475 crores in 9MFY26 from Rs. 2,040 crores in 9MFY25. Q3FY26 growth in NII was 19% to Rs. 872 crores.
· Gross stage 3 assets as on 31st December 2025 stood at 1.91% with 45% provision cover as against 1.70% with provision cover of 43% as on 31st December 2024. Net stage 3 assets as on 31st December 2025 closed at 1.06% as against 0.97% as on 31st December 2024.
· The Gross and Net NPA, as per RBI’s asset classification norms for NBFCs, are 2.69% and 1.73% respectively as against 2.46% and 1.62% as of 31st December 2024.
· Cost to income ratio improved to 28.72% in 9MFY26 as against 31.37% in 9MFY25.
· Profits from operations grew 20% to Rs. 1,529 crores in 9MFY26 as against Rs. 1,278 crores in 9MFY25. For the quarter, profits from operations grew 27% to Rs. 592 crores.
· The Company has considered Rs. 66 crores under “Exceptional Items” for the incremental impact of the new Labour Codes.
· Higher dividend income resulted in profit after tax registering 23% rise in 9MFY26, with net profit at Rs. 1,226 crores as against Rs. 997 crores in 9MFY25. For Q3FY26, PAT grew 15% Y-o-Y to Rs. 403 crores.
· Return on assets (ROA) for 9MFY26 closed at 2.67% as against 2.49% for 9MFY25. Return on equity (ROE) was at 15.48% for 9MFY26 as against 14.32% for 9MFY25. Excluding the impact of new Labour Codes, the ROA and ROE for 9MFY26 were 2.78% and 16.08% respectively.
· Capital Adequacy Ratio stood at 19.1% (Tier I –16.8%) as of 31st December 2025 compared to 20.0% (Tier I – 16.6%) as of 31st December 2024.
· The Company has declared an interim dividend of Rs. 16/- per share (160%).
CONSOLIDATED PERFORMANCE HIGHLIGHTS FOR 9MFY26
The consolidated results of SFL include the results of its standalone subsidiaries Sundaram Home Finance, Sundaram Asset Management and joint venture company Royal Sundaram General Insurance.
· The assets under management (AUM) in our lending and general insurance businesses stood at Rs. 87,302 crores as on 31st December 2025 as against Rs. 75,708 crores as on 31st December 2024, a growth of 15%. The assets under management of our asset management business stood at Rs. 86,195 crores as on 31st December 2025 as against Rs. 76,038 crores as on 31st December 2024.
· Profit after tax for 9MFY26 grew by 13% to Rs. 1,505 crores as compared to Rs. 1,326 crores in 9MFY25, after considering Rs. 67 crores under “Exceptional Items” for the incremental impact of the new Labour Codes.
GROUP COMPANY PERFORMANCE HIGHLIGHTS
The group companies continued to perform well.
· The asset management business closed the nine months ended 31st December 2025 with assets under management of Rs. 86,195 crores (around 80% in equity) and consolidated profits from the asset management businesses were at Rs. 139 crores as against Rs. 107 crores in 9MFY25.
· Royal Sundaram reported a Gross Written Premium (GWP) of Rs. 3,384 crores as compared to Rs. 2,965 crores in the previous year, representing a growth of 14%. The company reported a profit after tax of Rs. 160 crores for 9MFY26 as against a profit of Rs. 134 crores in 9MFY25.
· Sundaram Home Finance continued to grow strongly with disbursements up by 7% to Rs. 4,911 crores in 9MFY26. The profit for 9MFY26 was Rs. 212 crores, as against Rs. 173 crores in 9MFY25.