Shriram Finance Share Price Today (1 December 2025): Q2 FY26 Results, MUFG Deal Buzz, CEO Change and 2026 Outlook

Shriram Finance Limited’s stock is trading near record highs at the start of December 2025, after a year of strong earnings growth, heavy index-linked buying, and persistent takeover chatter.

As of late-morning trade on 1 December 2025, Shriram Finance’s share price is in the ₹850–865 range on the NSE, up around 1% versus the previous close of about ₹850.30. Business Standard and ETMoney both peg intraday quotes around ₹852–860, with the stock showing healthy volumes. ^[1]

Over the last 12 months, the stock has gained roughly 40–45%, comfortably outperforming both the Nifty 50 and the Nifty Financial Services index. MarketMojo estimates a one‑year return of 42.6% versus just 8.5% for the Sensex, while Business Standard data suggests a 41% gain versus about 7.8% for the Nifty. ^[2]

Below is a structured look at what’s driving Shriram Finance now: latest results, MUFG stake talks, leadership changes, valuations, and what analysts are expecting into 2026.

Shriram Finance share price today: market snapshot

Several real‑time trackers place Shriram Finance’s share price on 1 December 2025 around ₹852–860, with a 52‑week range of ₹493.35–₹872. ^[3]

Key near‑term metrics:

Market capitalisation: ~₹1.60 lakh crore, firmly large‑cap. ^[4]
Index membership: Part of the Nifty 50, Nifty 100, Nifty 200, Nifty 500 and Nifty LargeMidcap 250, which makes it a core holding in many index and ETF portfolios. ^[5]
Financial services weight: In the Nifty Financial Services index, Shriram Finance has a weight of about 2.2%, and has outperformed that index by more than 24 percentage points year‑to‑date in 2025. ^[6]

Momentum is strong: MarketsMojo notes that the stock is trading less than 0.2% below its 52‑week high (around ₹869–872), is above all key moving averages, and has delivered multi‑year returns far ahead of the Sensex—about 242% over three years and over 300% over five years, versus 37% and 94% respectively for the benchmark. ^[7]

Business snapshot: what Shriram Finance actually does

Shriram Finance is one of India’s largest retail‑focused non‑banking financial companies (NBFCs), with a long‑standing franchise in lending to small road transport operators, commercial vehicles, MSMEs, tractors, gold loans and personal loans. ^[8]

The scale is substantial:

Total assets: About ₹2.94 lakh crore as of 31 March 2025. ^[9]
Assets under management (AUM): Around ₹2.81 lakh crore as of 30 September 2025, up 15.7% YoY and higher than the ~₹2.43 lakh crore a year earlier. ^[10]
FY24–25 performance: Revenue of ₹41,834 crore (+15% YoY) and profit after tax of ₹9,564 crore (+29% YoY), with EBITDA of ₹11,595 crore. ^[11]

Screener data shows five‑year profit growth at about 26–27% CAGR, with a dividend payout ratio around 21%, underscoring a mix of growth and income characteristics. ^[12]

Q1 and Q2 FY26: earnings remain on a steady climb

Q1 FY26 (Quarter ended June 2025)

For the first quarter of FY26, Shriram Finance reported: ^[13]

Standalone PAT: ₹2,156 crore, +9% YoY
Net interest income (NII): ₹6,026 crore, +12.6% YoY

The quarter highlighted continued growth in core lending income despite higher funding costs.

Q2 FY26 (Quarter ended September 2025)

The unaudited standalone results for Q2 FY26, approved on 31 October 2025, show another solid print: ^[14]

NII: ₹6,266.84 crore vs ₹5,606.74 crore a year ago (+11.8% YoY)
Profit after tax: ₹2,307.18 crore vs ₹2,071.26 crore (+11.4% YoY)
Basic EPS: ₹12.27 vs ₹11.02 (+11.3% YoY)
AUM: ₹2,81,309 crore, up 15.7% YoY

The Board also declared an interim dividend of ₹4.80 per share (240% of face value) for FY26, with a record date of 7 November 2025. ^[15]

Reuters summarised the Q2 performance as a beat on profit expectations, driven by growth in small business and commercial vehicle lending—core niches where Shriram has long held a strong franchise. ^[16]

Strategic funding moves: MUFG stake talks and foreign currency plans

MUFG’s potential 20% stake

One of the biggest headlines this year has been talk of a strategic investment from Japan’s Mitsubishi UFJ Financial Group (MUFG).

An Economic Times report, summarised by Reuters, said MUFG is in advanced talks to buy a 20% stake in Shriram Finance via a ₹232 billion (~$2.6 billion) primary issue through preferential allotment, with both sides reportedly signing an exclusivity agreement. ^[17]
Shriram Finance, in an exchange filing cited in the same story, rejected speculation about any majority stake sale and said it had no knowledge of a shareholder intent to sell. ^[18]

Whether such a deal materialises or not, the discussions highlight the increasing global interest in Indian NBFCs as yield‑rich, high‑growth assets.

Offshore funding and bond reissues

Management has also been working to diversify its funding mix:

In April 2025, CEO Y. S. Chakravarti told Reuters that Shriram is exploring a yen‑denominated fundraise via banks or international bond markets, building on earlier multi‑currency social loans and overseas bonds. External commercial borrowings already made up roughly 15% of borrowings and overseas bonds about 6.8% at the time. ^[19]
Reuters and MarketScreener note that Shriram has reissued rupee bonds due 2028 and 2029, signalling continued access to domestic debt markets. ^[20]

Reports from Scanx (behind a paywall) indicate that the company has also launched an NCD buyback programme of up to ₹900 crore, a move that can help optimise its liability profile and cost of funds.

Overall, the balance sheet strategy fits with management’s stated aim of sustaining 17–18% AUM growth with net interest margins in the 8.5–8.8% range, helped by diversified borrowing channels and access to foreign capital. ^[21]

Leadership transition: Parag Sharma to take over as MD & CEO

On 31 October 2025, the Board approved an important leadership change: ^[22]

Parag Sharma, currently Managing Director & CFO, will be re‑designated as Managing Director & Chief Executive Officer with effect from 5 December 2025.
He replaces Y. S. Chakravarti, whose tenure as MD & CEO ends on 4 December 2025.

The official announcement notes that Sharma has been with the Shriram Group for over three decades, playing a key role in treasury management, credit rating improvements, new business growth and fund mobilisation. The move looks like a planned succession rather than an abrupt change, which tends to reassure markets.

Ratings, regulation and risk signals

Fitch upgrade and domestic ratings

In May 2025, Fitch Ratings upgraded Shriram Finance’s Long‑Term Issuer Default Rating to ‘BB+’ (Outlook: Stable), from ‘BB’, citing robust profitability, improved asset quality, comfortable capitalization and a more diversified funding profile, including foreign currency borrowings and social loans. ^[23]

Domestic rating agencies have also remained broadly constructive:

CARE Ratings highlights Shriram’s strong franchise, diversified resource profile (term loans, public deposits, bonds, etc.), and adequate liquidity, while also flagging the inherent asset‑quality and liability‑side risks faced by NBFCs. ^[24]
ICRA has reaffirmed ratings on multiple securitisation transactions backed by Shriram’s underlying loan pools, pointing to healthy collection efficiency and low delinquencies in those portfolios. ^[25]

RBI penalties and compliance

On the regulatory side, Shriram Finance has faced a few small penalties this year:

In November 2025, Reuters reported that the Reserve Bank of India issued orders imposing ₹1.5 million (₹15 lakh) in penalties on the company, though detailed reasons require subscriber access. ^[26]
Earlier in 2025, RBI imposed penalties of ₹5.8 lakh and ₹2.7 lakh for lapses related to NBFC and credit information reporting guidelines. ^[27]

In absolute terms these amounts are tiny compared with Shriram’s annual profit of over ₹9,000 crore, but they are reminders that regulatory scrutiny of NBFCs remains intense, particularly around gold loans, KYC norms and fair‑practices codes.

Valuations: fairly valued or still room to run?

Valuation is where opinions begin to diverge.

Stand‑alone valuation metrics

Across data providers, current valuation looks like this:

P/E ratio: roughly 16–18x trailing earnings, depending on the dataset and cut‑off date. Business Standard cites 17.5x based on TTM earnings to September 2025; MarketsMojo and ETMoney put it around 18.4–18.8x. ^[28]
Price‑to‑book (P/B): around 2.6–2.8x, a moderate premium to book value. ^[29]
EV/EBITDA: about 11.6x. ^[30]
Dividend yield: roughly 1.2%, reflecting a bias toward reinvestment over high payouts. ^[31]

MarketsMojo’s 29 November note explicitly classifies the stock as “fairly valued”, arguing that while returns have been exceptional (nearly 297% over five years versus 94% for the Sensex), valuation multiples sit in the middle of the sector range rather than at extremes. ^[32]

Its earlier “Robust Market Performance” deep‑dive also shows Shriram trading on a P/E below the NBFC sector average (18.8x versus 23.4x), despite much stronger one‑, three‑, five‑ and ten‑year returns. ^[33]

Street targets and consensus

Brokerage views are mixed but lean positive:

Morgan Stanley retains an Overweight rating with a target price of ₹925, implying ~11% upside from a then‑current market price of ₹832. ^[34]
On 3 November 2025, IIFL upgraded Shriram Finance to Buy with a target of ₹900, YES Research moved to Buy with a target of ₹870, and Jefferies raised its target to ₹880 while keeping a Buy rating. ^[35]

Yet, aggregated data from Trendlyne tells a more cautious story:

Across 19 reports from 7 analysts, the average long‑term target price is around ₹805, implying mid‑single‑digit downside from recent levels near ₹860. ^[36]

In other words, top‑down consensus has moderated after the sharp rally, even as a few large brokers remain bullish with targets close to or slightly above current prices.

Technical and derivatives picture

From a technical standpoint, the setup remains constructive:

TradingView’s aggregate technical indicator rates Shriram Finance as a “Buy” on daily and weekly time frames and a “Buy” over one month, supported by price action above major moving averages. ^[37]
The December 2025 single‑stock futures contract recently traded around ₹867–870, a slight premium to the cash price, suggesting a mild positive bias among derivatives traders. ^[38]

MarketMojo’s tracking shows the stock not only near its 52‑week high but also delivering outperformance over almost every time frame versus the Sensex, reinforcing the view that it remains in a strong uptrend. ^[39]

Shareholding, fundamentals and long‑term performance

Promoter holding: Around 25.4% as of the September 2025 quarter, broadly stable in recent quarters though down about 4 percentage points over the last three years according to Screener. ^[40]
Return on equity: MarketsMojo pegs ROE at about 14.3%, with return on capital employed around 11.4%—solid but not sky‑high, given the business is capital‑intensive. ^[41]
Interest coverage: Screener flags a relatively low interest coverage ratio, which is common among leveraged NBFCs but still a point to monitor, especially in volatile rate environments. ^[42]

At a market cap of roughly ₹1.6 trillion, Shriram is now among the more valuable financials outside the banking giants, and has delivered a compounded multi‑bagger return over the past decade—almost 393% versus about 228% for the Sensex. ^[43]

Key risks to watch in 2026

Despite the strong story, investors tracking Shriram Finance into 2026 need to keep an eye on several risks:

Credit cycle and asset quality
The company is heavily exposed to commercial vehicles, small transport operators and MSMEs—segments that are highly sensitive to fuel prices, freight demand and broader economic conditions. A downturn in these pockets can quickly translate into higher delinquencies and credit costs, eroding the earnings trajectory that Fitch and others have recently rewarded. ^[44]
Regulatory tightening for NBFCs and gold loans
RBI has been gradually narrowing the regulatory gap between banks and NBFCs. Recent small penalties, while financially insignificant, show that compliance expectations are high and rising—especially around KYC, data reporting and specialised segments like gold loans. ^[45]
Funding costs and interest rates
Shriram’s strategy of raising international debt (including social loans and potential yen bonds) and reissuing rupee bonds helps diversify liabilities, but also adds currency and refinancing risks. A sharp move in global or domestic rates would pressure margins, particularly with leverage already embedded in the model. ^[46]
Deal overhang from MUFG talks
The MUFG discussions, even though officially labelled “speculation” by Shriram with respect to any majority stake sale, may create valuation overhang or spikes depending on how negotiations evolve. A large primary infusion at a discount, or a breakdown in talks, could both move the stock sharply in either direction. ^[47]
Valuation saturation after a big rally
With YTD returns approaching 45–50% and the stock trading near all‑time highs, several analysts now see limited upside near term, as highlighted by the ₹805 consensus target. Future gains will likely depend on either faster‑than‑expected earnings growth, a favourable strategic deal, or a benign interest‑rate backdrop. ^[48]

Outlook: what the market is pricing in

The market today seems to be pricing Shriram Finance as:

A core large‑cap NBFC with entrenched franchises in under‑served borrower segments.
A Nifty 50 constituent that benefits from constant index and ETF flows. ^[49]
A company that has proven it can grow AUM high‑teens with double‑digit earnings growth, even under tighter regulation and fluctuating funding costs. ^[50]

With valuations in the mid‑teens P/E range and not wildly out of line with sector peers, the debate is less about whether Shriram Finance is a quality franchise (the long‑term numbers and rating upgrades strongly suggest it is), and more about how much of that quality is already in the price. ^[51]

For existing shareholders, the next catalysts to watch include:

Execution under the new CEO Parag Sharma from December 2025. ^[52]
Clarity on any MUFG stake or other strategic capital infusions. ^[53]
The trajectory of AUM growth, net interest margins and credit costs in Q3 and Q4 FY26.

References