Strong disbursements growth and improved asset quality lifted SFL’s quarterly and half-yearly performance.
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Kesavan A N 1612
Sundaram Finance Ltd (SFL) on Wednesday reported a 21 per cent growth in standalone net profit to ₹475 crore for the quarter ended September 2026 (Q2FY27).
The board also announced that S. Viji, the long-standing Chairman of the SFL Board for the last 21 years, has stepped down as Non-Executive Director and Chairman, owing to his age and other personal considerations. The board has elected R. Venkatraman, Independent Director, to be the Chairman, in a move that makes him the first person outside of the TSF family to hold this position. Venkatraman was head of KPMG India’s consulting practice and has over four decades of experience in management consulting.
SFL’s quarterly and half-yearly performance saw a boost on strong disbursements growth, along with an improvement in asset quality.
Disbursements for Q2FY27 grew by 28 per cent to ₹10,355 crores. Assets under Management of the NBFC, which primarily offers vehicle finance, grew 19 per cent YoY to ₹65,992 crore.
On a consolidated basis, net profit for the quarter grew 6 per cent to ₹517 crore. Profit after tax for H1FY27 grew by 20 per cent to ₹1,153 crore. The consolidated results of SFL include the results of Sundaram Home Finance, Sundaram Asset Management and joint venture company Royal Sundaram General Insurance.
Asset quality improved with Gross stage-3 assets as of September 2026 standing at 1.84 per cent, as against 2.03 per cent. Net stage 3 assets closed at 0.91 per cent, as against 1.13 per cent in the year-ago period.
Rajiv Lochan, Managing Director, SFL, told businessline that the industry has seen strong growth despite the macro shocks, and the categories that SFL particularly lends in have seen double-digit growth. “The decision to focus on used vehicle segment has worked out well for us, with 30 per cent of the disbursement in H1FY27 being used vehicle financing,” he added. “Our outlook for H2 is constructive on growth, coupled with a need for monitoring external factors around geopolitical tensions, monetary policy direction and the impact to sentiment of the below normal monsoon.”
Harsha Viji, Executive Vice-Chairman, SFL, said the team had delivered strong metrics in the backdrop of renewed tensions in West Asia, crude oil price volatility and tighter global financial conditions, increasing inflationary and external-sector risks.
SFL also announced that in order to simplify the group structure, the board has approved acquisition of the entire shareholding (3,90,53,158 equity shares of ₹10 each) in Sundaram Alternate Assets Ltd (SAAL) from Sundaram Asset Management Company Ltd (SAMCL) for a consideration of ₹75 crore. This makes SAAL a direct subsidiary of SFL, instead of a step-down subsidiary. SAAL recorded a revenue of ₹99 crore and profit of ₹21 crore for H1FY27.
Shares of SFL closed the trading day at ₹3,975, down 2 per cent on the NSE.
Published on November 4, 2026
