Shriram Finance share price target after Q2 results: Brokerages cut target despite 59% profit jump; check Buy or sell

Shriram Finance price target after Q2 results: Shriram Finance's profit rose 59 per cent to Rs 3,677 crore in the September quarter. Two brokerages, including Emkay, have lowered their target price for the stock, but both have maintained their 'Buy' rating and expect the share price to rise from its current level.

Shriram Finance price target 2026

Emkay sets target at Rs 1,050

Emkay has kept its “Buy” rating on Shriram Finance but cut its target price to Rs 1,050 from Rs 1,200. Against the current price of Rs 867, this shows an upside of about 21 per cent. The brokerage has also cut its earnings estimates for FY27 to FY29 by 2 to 6 per cent.

Emkay said the company’s profit and margin were good, but rising pressure on borrowers’ ability to repay loans in some areas is a worry. The company’s total loans (AUM) grew 17 per cent year-on-year to Rs 3.29 lakh crore. It gave out new loans worth Rs 54,080 crore in the quarter. Its capital position is also strong, with a capital adequacy ratio of 33.2 per cent.

Nuvama cuts target to Rs 1,150

Nuvama has also kept its “Buy” rating, but cut its target price to Rs 1,150 from Rs 1,250. From the price of Rs 867, this shows an upside of about 33 per cent.

The brokerage said the company’s strong growth and good margin can help absorb the effect of higher provisions (money set aside for loans that may go bad). It cut the target because of challenges in recovering loans in rural areas and a fall in valuations across the sector.

Shriram Finance Q2 results

The comapany on Friday reported a 59 per cent increase in consolidated net profit to Rs 3,684 crore in the second quarter of the current fiscal.

The flagship company of diversified conglomerate Shriram Group had earned a net profit of Rs 2,314 crore in the second quarter of the preceding financial year.

On a standalone basis, the non-bank lender reported a net profit of Rs 3,677 crore against Rs 2,307 crore in the second quarter of FY26.

The core net interest income was up 38 per cent to Rs 8,661 crore, helped by a sharp expansion in the net interest margin to 9.52 per cent from 8.19 per cent year-ago, and a 17 per cent growth in the assets under management.

The company's asset quality remained nearly flat with gross Non-Performing Assets (NPAs) at 4.65 per cent of gross advances as of September 30, 2026, against 4.57 per cent by the end of the second quarter of the previous fiscal.

However, net NPAs moderated to 2.31 per cent of the advances, from 2.49 per cent at the end of September last year.

Shares of Shriram Finance closed 3.67 per cent lower at Rs 867 apiece on the BSE on Friday, as against a 0.17 per cent correction on the benchmark.