Sundaram Finance Limited announced audited standalone and consolidated financial results for the year ended March 31, 2026, at its board meeting held on May 25, 2026. The company reported a 19% year-on-year increase in profit after tax to Rs 1,834 crore driven by higher disbursements and asset under management growth. Disbursements grew 14% to Rs 32,321 crore for FY26 with Q4FY26 disbursements rising 17% to Rs 8,051 crore.
Assets under management (AUM) expanded 16.4% to Rs 59,908 crore during FY26. The company highlighted improved asset quality with net stage 3 assets declining to 0.69% from 0.75% in the previous year. Return on assets (ROA) increased to 3.03% compared to 2.85% in FY25, reflecting better operational efficiency and risk management practices.
A final dividend of Rs 24 per share (240% of face value) was declared by the board. This represents a significant payout to shareholders following the company's strong financial performance. The dividend declaration aligns with the group's strategy of balancing growth with shareholder returns while maintaining asset quality metrics.
The board noted that H2FY26 benefited from monetary and fiscal policy stimuli after initial challenges in H1FY26 related to trade tariffs. Group companies in asset management, general insurance, and home finance contributed to the overall growth. Sundaram Home Finance showed 4% disbursement growth to Rs 6,805 crore with improved net stage 3 assets at 0.51%.
Profit from operations grew 18% year-on-year to Rs 2,151 crore for FY26. The company attributed this to disciplined cost management, with the cost-to-income ratio improving to 28.71% from 30.80% in FY25. Exceptional items related to new Labour Codes impacted FY26 results by Rs 75 crore, which was factored into the financials.
Sundaram Finance maintains a strong capital adequacy ratio of 19.1% as of March 31, 2026. The company's focus on steady growth, asset quality, and profitability remains central to its strategy. Management expressed confidence in India's macroeconomic fundamentals supporting future growth prospects despite geopolitical uncertainties.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.