Sundaram Finance's Q1 FY 2025-26 Quarterly Results

Result Summary

• Sundaram Finance Ltd reported a 9.1% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 20.1%.
• Its expenses for the quarter were up by 15.7% QoQ and 16.2% YoY.
• The net profit increased 0.6% QoQ and increased 9.3% YoY.
• The earnings per share (EPS) of Sundaram Finance Ltd stood at 43.1 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Sundaram Finance Ltd is a prominent financial services company in India, primarily engaged in providing a wide array of financial products and services. The company is known for its extensive offerings in vehicle finance, home loans, mutual funds, insurance, and other related services. Sundaram Finance has established a strong presence in the financial services industry, leveraging its deep understanding of the Indian market and customer needs. The company is recognized for its customer-centric approach and has been expanding its portfolio to cater to the growing financial needs of individuals and businesses across the country. As of the latest data, no specific recent major developments have been disclosed.

Revenue

In Q1FY26, Sundaram Finance Ltd reported a total income of ₹2353.10 crores, marking a significant increase of 9.1% compared to the previous quarter (Q4FY25) where the total income was ₹2157.27 crores. The year-over-year (YoY) growth from Q1FY25, when the total income was ₹1959.65 crores, is even more noteworthy at 20.1%. This substantial increase in revenue indicates a period of robust growth for the company. The growth trend between quarters and over the year suggests an upward trajectory in the company's ability to generate income, which could be attributed to the expansion of its services or enhanced market penetration.

Profitability

The profitability metrics for Sundaram Finance Ltd during Q1FY26 show a pattern of growth. The profit before tax for this quarter is ₹575.32 crores, representing a 6.4% increase from the previous quarter's figure of ₹540.61 crores. Year-over-year, the profit before tax saw a 9.7% rise from ₹524.55 crores in Q1FY25. The profit after tax for Q1FY26 stands at ₹475.21 crores, a slight quarter-over-quarter increase of 0.6% from Q4FY25's ₹472.41 crores, and a 9.3% increase from ₹434.85 crores in Q1FY25. The tax expense has seen a notable YoY increase of 33.6%, from ₹122.36 crores in Q1FY25 to ₹163.52 crores in Q1FY26, which indicates a higher tax liability or changes in tax accounting. Earnings per share (EPS) also reflect significant growth, with a figure of ₹43.10 in Q1FY26, which is a remarkable 77.4% increase from the previous quarter's ₹24.30, and a 9.1% increase from ₹39.50 in Q1FY25.

Operating Metrics

Examining the operating metrics, Sundaram Finance Ltd's total expenses rose to ₹1591.14 crores in Q1FY26 from ₹1374.87 crores in Q4FY25, reflecting a quarter-over-quarter increase of 15.7%. Year-over-year, total expenses increased by 16.2% from ₹1369.18 crores in Q1FY25. This escalation in expenses could be associated with the company's expansion efforts or increased operational activities. The company's strategy seems to be focused on scaling operations, which is evident from the rise in both income and expenses. The close alignment in growth rates of income and expenses suggests a balanced approach in managing operational scale and financial performance.