Increased Profit After Tax (PAT) for Sundaram Finance by 9%
In a recent financial report, Sundaram Finance announced a robust performance for Q1 FY26. The company's shares closed at ₹4,460 on NSE, marking a 2.3% decrease [1].
Highlights of the Q1 FY26 performance include a 39% year-on-year profit after tax (PAT) increase to ₹429 crores and a 17% rise in assets under management (AUM) to ₹53,278 crores. Disbursements grew by 6% to ₹7,310 crores, reflecting steady business growth [2][3].
In terms of asset quality, the gross stage 3 (non-performing) assets increased slightly to 1.91% from 1.56% in Q1 FY25, indicating a manageable but slightly elevated risk level. The capital adequacy ratio (CAR) remained strong at 20.0%, supporting the firm’s financial stability [2][3].
Key financial ratios included a return on assets (ROA) improvement to 2.91% (up from 2.38% in Q1 FY25) and a return on equity (ROE) increase to 16.7% (from 13.6% in Q1 FY25). The cost-to-income ratio improved to 29.84% from 32.90%, showing better operating efficiency. Dividend income surged significantly to ₹124 crores from ₹18 crores, contributing to profitability [3].
For future priorities, Sundaram Finance is focusing on optimizing margins through prudent asset class and customer segment diversification, maintaining tight cost control, and leveraging its AAA credit rating to manage borrowing costs. The company also aims to extend its market share by continuing disciplined growth in AUM and disbursements while carefully managing asset quality and operating expenses [3].
Harsha Viji, Executive Vice Chairman of Sundaram Finance, stated that their group companies in asset management, general insurance, and home finance have continued their strong performance from FY25. The company is well-positioned to continue its growth and deliver the Sundaram experience to customers, people, and partners [4].
Despite industry sales being below market expectations in their operating segments and geographies, Sundaram Finance's focus for the quarter was on extending market share [5].
The comprehensive approach taken by Sundaram Finance positions the company for steady growth with strong financial health and controlled risk. The report was published on August 4, 2025 [6].
References: 1. NSE: Sundaram Finance shares close at ₹4,460 2. Sundaram Finance reports strong Q1 FY26 performance 3. Sundaram Finance Q1 FY26 financial highlights 4. Harsha Viji: Sundaram Finance group companies perform well 5. Sundaram Finance focuses on market share extension 6. Sundaram Finance publishes Q1 FY26 report
- The robust growth of Sundaram Finance in Q1 FY26 includes a significant increase in profit after tax (PAT) and assets under management (AUM), as well as a rise in disbursements, indicating a strong financial performance and steady business growth in the industry.
- Although the company's shares closed at ₹4,460 with a 2.3% decrease on NSE, other key financial ratios, such as return on assets (ROA) and return on equity (ROE), have improved, showcasing better financial efficiency and higher profitability.
- To maintain its financial stability and growth, Sundaram Finance is focusing on various strategic initiatives like optimizing margins through efficient asset allocation, tight cost control, and leveraging its credit rating to manage borrowing costs.
- In the future, Sundaram Finance aims to extend its market share by growing its AUM and disbursements while managing risk and maintaining financial health, supported by the strong performance of its group companies in asset management, general insurance, and home finance.
- Despite industry sales falling short of market expectations in certain operating segments and geographies, Sundaram Finance has prioritized extending its market share amidst these challenging circumstances.
- Overall, the comprehensive approach adopted by Sundaram Finance positions the company for steady growth with strong financial health and controlled risk, as evidenced by its recent Q1 FY26 financial report.
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