Shriram Finance Share Price Today: Q2 FY26 Results, MUFG Stake Buzz and Broker Targets Explained (8 December 2025)

Updated: 8 December 2025

Shriram Finance share price today: near highs after a 40% three‑month rally

Shriram Finance Limited (NSE: SHRIRAMFIN) is trading around ₹843–845 on the NSE and BSE at midday on 8 December 2025, down about 1.3% on the day but still very close to its 52‑week high of roughly ₹872. ^[1]

Over the past three months, the stock has surged about 41%, and roughly 35% over the last one year, while five‑year returns stand near 295%, massively outperforming the broader market. ^[2]

Key valuation and trading metrics as of today: ^[3]

Market capitalisation: about ₹1.58–1.59 trillion, putting it among the larger financials in India
P/E (trailing): ~16× earnings
P/B: ~2.85× book value
Dividend yield: ~1.2%
52‑week range: about ₹493–₹872
Beta: ~1.8–1.9, meaning the stock tends to move more than the market

From a pure price‑action standpoint, this is a stock that has already done a lot of heavy lifting in 2025. The question now is whether fundamentals and future growth justify more upside, or whether we’re in the “don’t touch the hot pan” zone.

From commercial‑vehicle lender to Nifty 50 heavyweight

Shriram Finance is the flagship NBFC (non‑banking financial company) of the Shriram Group, with a dominant presence in used and new commercial vehicles, passenger vehicles, two‑wheelers, SME lending, personal loans and other retail segments. ^[4]

A few structural milestones matter for investors:

Nifty 50 inclusion: Shriram Finance replaced UPL in the Nifty 50 index on 28 March 2024, after clocking high free‑float market capitalisation relative to peers. ^[5]
Scale: Assets under management (AUM) are now around ₹2.81 trillion, making it one of India’s largest retail asset‑financing NBFCs. ^[6]
Network: As of September 2025, the company operates over 3,200 branches, serves roughly 9.7 million customers, and employs nearly 79,000 people. ^[7]

The company’s evolution from a niche truck‑financing specialist into a diversified Nifty 50 constituent, with CVs, PVs, MSME loans, two‑wheelers, personal and gold loans in the mix, is a big part of the bull case: multiple growth engines instead of just one. ^[8]

Q2 FY26 results: steady growth, better NPAs and a fatter dividend

The latest Q2 FY26 results (quarter ended September 2025) are the core “fundamental anchor” under the current rally.

Key numbers: ^[9]

Net profit: ₹2,314 crore, up 7% year‑on‑year (YoY)
Total income: ₹11,921 crore, up 18% YoY
Interest income: ₹11,551 crore, also up 18% YoY
AUM: about ₹2.81 trillion, up ~15.7% YoY and up from ₹2.72 trillion in June 2025
Net interest income (NII): ~₹6,266 crore, up ~11.7% YoY, with net interest margin (NIM) expanding by about 8 basis points QoQ
Gross NPA: improved to 4.57% (from 5.32% a year ago)
Net NPA: eased to 2.49% (from 2.64% a year ago)
Credit cost: around 1.9% of AUM, roughly in line with management’s sub‑2% guidance ^[10]
Expenses: total expenses rose about 20% YoY to ₹8,808 crore
Interim dividend:₹4.80 per share (240% on a ₹2 face value)

Management commentary from Executive Vice‑Chairman Umesh Revankar indicates an expectation of 15–20% loan growth over the next two quarters, aiming to close FY26 with around 17% AUM growth—solid if they actually hit it. ^[11]

From a quality-of-growth perspective:

Growth has been broad‑based across vehicle finance, MSME and other retail products. ^[12]
Asset quality is improving, not worsening, even at higher AUM.
Margins are expanding slightly despite a high‑rate environment, reflecting better liability management and deployment of earlier excess liquidity. ^[13]

To be blunt: it’s not a “blow‑out” quarter, but it’s exactly the kind of steady, compounding-friendly performance that long‑only funds adore.

Leadership changes: new MD & CEO from December 2025

Just as the stock rides high, Shriram Finance is also going through a top‑management transition: ^[14]

Y. S. Chakravarti’s tenure as Managing Director & CEO ended on 5 December 2025, as disclosed in exchange filings.
The board has re‑designated CFO Parag Sharma as Managing Director & CFO, effective 5 December 2025.
Jugal Kishore Mohapatra has been re‑appointed as independent director and chairman for another three‑year term.
S. Subramanian has been appointed as a Whole‑Time Director, while the list of key managerial personnel (KMP) now includes Umesh Revankar (Executive VC), Parag Sharma, S. Subramanian and U. Balasundararao.

The market generally doesn’t love uncertainty around CEOs, especially in lenders. In this case, brokerages are treating the change as a planned succession rather than a red flag, noting continuity of the broader leadership bench. ^[15]

Strategic moves: MUFG stake buzz, yen funding and fresh debentures

2025 hasn’t been short on “strategic intrigue” around Shriram Finance.

1. MUFG stake talks – big headline, still unconfirmed

In October 2025, Reuters reported that Japan’s banking giant Mitsubishi UFJ Financial Group (MUFG) was in advanced talks to buy a 20% stake in Shriram Finance for about ₹232 billion (~$2.6 billion) through a primary issuance via preferential allotment, with scope to raise the stake further over time. ^[16]

Crucially:

The report cited Economic Times sources, not an official confirmation.
Shriram Finance, in an exchange filing a day earlier, said it had received a media query about a majority stake sale and called it “speculation”, adding it had no knowledge of any such deal or of any shareholder intent to sell. ^[17]

So we have:

Very serious rumour + formal company denial = classic “Schrödinger’s deal.”

Until something binding is announced, this should be treated as background optionality, not a base case. But the sheer scale of the potential equity infusion and the strategic partnership with a global bank is one reason the stock’s rerating narrative remains alive.

2. International funding: yen loans, social loans and NCDs

Back in April 2025, Shriram Finance’s then‑CEO told Reuters that the company was exploring yen‑denominated borrowing, either via loans from Japanese banks or an international bond issue, to diversify its borrowing profile. ^[18]

Context from that interview: ^[19]

External commercial borrowings formed about 15% of borrowings, and overseas bonds nearly 6.8%, as of March 2025.
In December 2024, the company had already raised about $1.28 billion via a multi‑currency social loan (USD, EUR, AED), with tenors up to five years.
Management talked about deploying roughly ₹30,000 crore of excess liquidity and maintaining NIM in the 8.5–8.8% range by lowering borrowing costs.

More recently, on 1 December 2025 the company allotted new non‑convertible debentures (NCDs) via private placement, continuing its practice of actively terming out liabilities. ^[20]

Put together, Shriram is increasingly running a globalised liability strategy rather than relying only on domestic bank lines — a key differentiator among NBFCs.

Ratings and risk: Fitch upgrade to BB+

In May 2025, Fitch Ratings upgraded Shriram Finance’s long‑term foreign and local currency issuer ratings to ‘BB+’ (Stable) from ‘BB’. ^[21]

The upgrade was based on: ^[22]

Improved funding diversity
Stronger risk management and portfolio quality
Sustained profitability
Demonstrated resilience post‑merger with Shriram City Union Finance in 2022

Fitch specifically pointed to tighter loan‑management practices, better risk controls and lower delinquency rates, arguing that these improvements should support asset quality through macro shocks. ^[23]

For a global investor, “BB+ Stable” isn’t glamorous, but it nudges the company closer to the sweet spot for cheaper foreign funding and broader institutional interest.

Brokerage calls: targets cluster between ~₹705 and ₹880

If you’re trying to anchor expectations, brokerage research is the place to snoop. The fun part: almost everyone likes the stock, they just disagree about how much is left on the table.

1. Consensus snapshot

Trendlyne’s broker aggregation (as of 8 December 2025) shows a consensus share‑price target of about ₹840.7, effectively equal to the current market price of ~₹842–845, with an overall “Buy” stance. ^[24]
The Economic Times’ analyst dashboard, tracking about 32 analysts, shows 13 “Strong Buy”, 15 “Buy”, 3 “Hold” and 1 “Sell”, with an older average target around ₹750. ^[25]

So: the directional view is bullish, but the upside, on paper, looks modest from today’s price unless earnings surprise positively.

2. Key domestic broker views

Motilal Oswal (4 November 2025)
- Calls Shriram Finance its “Top Idea” in the NBFC sector for CY25.
- Sees AUM and PAT CAGRs of ~16% and ~18% respectively over FY25–28.
- Projects RoA/RoE of ~3.4% / 17% by FY28.
- Values the stock at about 2× FY27E book, giving a target price of ₹860 and describing current ~1.9× FY27E P/BV as attractive. ^[26]
Axis Direct (Q2 FY26 result update, 3 November 2025)
- Expects roughly 16% CAGR in AUM, NII and earnings over FY26–28.
- Forecasts RoA of 3.2–3.3% and RoE of 16–17% across FY26–28.
- Values the stock at 2.5× FY27E adjusted book, implying a target price of ₹860. ^[27]
ICICI Direct (2 November 2025)
- Highlights the company’s 3,225 branches, nearly 96.6 lakh customers, and strong disbursement growth of 10.2% YoY in Q2.
- Notes 15.7% AUM growth and NIM improvement, with credit costs steady at ~1.9%.
- Maintains a “Buy” rating with a target price of ₹880. ^[28]
InCred Equities (quoted in Business Standard)
- Retains Shriram Finance in its “high‑conviction” list with an ADD rating and a target price of ₹870, valuing it at about 2.1× FY27 book. ^[29]
Nuvama (Economic Times report)
- Reiterates “Buy” and raises its target to ₹870 (from ₹710), valuing the stock at about 2.6× FY26E book.
- Cites lower credit costs (under 2% of AUM), improving NIMs, and steady AUM growth as key positives. ^[30]

3. Global broker perspectives

CLSA has maintained an “Outperform” rating and raised its target from ₹735 to ₹840, flagging lower credit costs and stable asset quality. ^[31]
JPMorgan has kept an “Overweight” stance while lifting its target from ₹740 to ₹840, and notes scope for further re‑rating if earnings upgrades continue. ^[32]

A Nasdaq/Fintel‑style aggregation pegs the average 12‑month target near ₹831, also suggesting the stock is hovering around fair value based on existing estimates rather than being deeply undervalued. ^[33]

In short: most serious analysts see Shriram Finance as a high‑quality compounder, but the easy money may have been made in 2025; further upside increasingly depends on earning its way up rather than simple P/B multiple expansion.

Technical and derivatives picture: strong uptrend, but a bit “hot”

On the technical side, the stock is screaming “trend‑up” but also whispering “careful”.

Momentum & pattern
- ET’s “Stock Radar” column (1 December 2025) highlighted that Shriram Finance had rallied over 40% in three months, hitting record highs and breaking out of a bullish pennant pattern on the monthly chart.
- The article suggested a near‑term target of ₹930 and described dips as buying opportunities as long as the stock stays above key moving averages. ^[34]
Stochastic buy signal
- ET’s technical insights note a weekly stochastic crossover as of the week ending 5 December 2025, historically associated with an average ~9% gain over the following seven weeks for this stock. ^[35]
Derivatives data
- Option‑chain snapshots for the December 2025 expiry show heavy activity around the ₹840–₹860 strikes, with the underlying around ₹842–845. ^[36]
- One options analytics platform pegs the put‑call ratio (PCR) for the December series near 0.65, implying more call open interest than puts—typically a sign of either bullish positioning or crowded optimism, depending on your level of paranoia. ^[37]
- A recent MarketsMojo write‑up noted elevated call option volumes around the ₹840 strike for the 30 December expiry, again pointing to traders leaning bullish into the year‑end. ^[38]
Overbought signals
- NDTV Profit, citing technical indicators, pointed out that the stock’s relative strength index (RSI) is around 75, traditionally considered an overbought zone, even as the stock has delivered over 36% year‑to‑date returns. ^[39]

So the short version: trend is your friend, but momentum indicators suggest the stock is not cheap on the charts either.

Macro tailwinds: RBI rate cut and NBFC sweet‑spot

On 5 December 2025, the RBI’s Monetary Policy Committee surprised markets with a 25 basis‑point repo rate cut, prompting renewed focus on NBFCs as potential big beneficiaries of lower funding costs. ^[40]

An Economic Times analysis of NBFCs that have “learnt their lessons” through years of regulatory tightening highlighted that: ^[41]

The real winners from rate cuts are likely NBFCs with strong parentage, conservative risk culture, and diversified funding.
Shriram Finance, with its deposit franchise, foreign borrowing channels and improved rating, fits much of that description.

Lower policy rates, if they persist and feed into the company’s borrowing costs, can support NIM expansion, especially when paired with Shriram’s already‑announced drive to deploy high‑cost liquidity at better spreads. ^[42]

Balance sheet, shareholding and structural strengths

Zooming out from quarter‑by‑quarter drama:

Over the last 5–10 years, Shriram Finance has delivered sales growth around 17–20% and profit growth in the mid‑20s annually, with ROE around 15–16% in recent years. ^[43]
Long‑term stock price CAGR runs near 32% over five years and 47% over three years, reflecting a substantial rerating post‑merger. ^[44]
The shareholding pattern as of September 2025 shows:
- Promoters: ~25.4%
- FIIs: just under 50%
- DIIs: around 18–19%
- Public: about 6% ^[45]

That mix—moderate promoter stake, high foreign and domestic institutional ownership, and relatively low free float among small investors—is precisely the kind of cap table global indices and ETFs are comfortable with.

On the cost side, ET’s financial insights note that in FY25, Shriram spent about 44% of operating revenue on interest and roughly 9% on employee costs—numbers that leave decent room for operating leverage if growth stays strong and borrowing costs ease. ^[46]

Key risks: what could break the thesis?

Even the best‑looking lender faces the usual rogues’ gallery of risks:

Asset‑quality wobble in newer products
- Brokerages have repeatedly flagged higher stress in consumer and SME segments vs. the traditional used‑CV book. Stage‑2 assets ticked up in earlier quarters even as headline GNPA improved, prompting some analysts (like Prabhudas Lilladher and ICICI Securities) to bake in slightly higher credit cost assumptions (~2.1%) than management guidance. ^[47]
Growth vs. risk management
- Targets of 15–20% loan growth and more aggressive AUM diversification are great until the cycle turns. The “good monsoon + robust economy” supporting current asset quality won’t last forever. ^[48]
Valuation risk after the rally
- At ~16× trailing earnings and ~2.8× book, Shriram is no longer obviously cheap; it’s trading around or slightly above many published target prices (₹705–880 range). ^[49]
Execution and regulatory risk
- As a systemically important NBFC with global funding ambitions, Shriram operates under intense regulatory and rating‑agency scrutiny. Any misstep in underwriting, governance (especially post leadership change), or ALM could invite swift punishment from both regulators and markets. ^[50]

Outlook: what could drive Shriram Finance stock next?

Putting all the threads together, the near‑to‑medium‑term trajectory for Shriram Finance’s share price likely depends on a few big levers:

Can earnings growth outrun valuation?
- If PAT really compounds ~18% annually and RoE edges toward 17%, the stock can justify staying near (or even above) 2–2.5× book without feeling stretched. That’s essentially the Motilal/Axis/ICICI playbook. ^[51]
Sustained asset‑quality resilience
- Holding credit costs below 2% while continuing to expand newer retail and SME products is key. A spike in slippages—especially in unsecured or lightly collateralised buckets—would quickly force brokers to cut targets and multiples. ^[52]
Cost of funds and rate cycle
- The RBI’s December rate cut, plus diversification into international currencies (yen loans, social loans) and higher ratings, give Shriram room to lower borrowing costs and protect NIMs even if competitive intensity in lending rises. ^[53]
Strategic events
- Any confirmation (or definitive denial) of a MUFG‑style strategic stake, or other equity partnerships, would be a major price catalyst in either direction. As of now, it remains a speculative bonus, not an investment pillar. ^[54]
Flows and index dynamics
- As a Nifty 50 constituent with rising market cap, Shriram Finance is firmly on the radar of domestic and global ETFs and factor funds. Strong index inflows or NBFC sector rotations can amplify moves, both up and down. ^[55]

Bottom line (and a quick disclaimer)

Shriram Finance in December 2025 is not the beaten‑down, misunderstood lender it once was. It’s now:

A Nifty 50 heavyweight with ~₹2.8 trillion in AUM
Freshly upgraded by Fitch to BB+
Delivering mid‑teens loan growth, high‑teens earnings growth, and RoE in the mid‑teens
Sitting near all‑time highs after a blistering 40% three‑month rally
Surrounded by largely bullish broker calls, but with consensus targets hovering close to today’s price