Shriram Finance's NCD Programme Rated [ICRA]AAA; Stable
ICRA assigned [ICRA]AAA; Stable to Shriram Finance's Rs. 5,000 crore NCD Programme and reaffirmed ratings on other instruments. The rating highlights SFL's strong market position and capitalisation, with NIM rising to 8.6% and RoMA to 3.9% in Q1 FY2027. The stable outlook reflects sustained capitalisation and earnings growth.
A high credit rating directly impacts the company's ability to raise debt at favorable terms, reduces borrowing costs, and enhances investor confidence, thereby having a significant positive impact on its financial operations and growth prospects.
The assignment of a top-tier credit rating ([ICRA]AAA; Stable) for a significant NCD programme and the reaffirmation of existing ratings indicate strong financial health and stability, which is a positive development for the company.
Shriram Finance Limited (SFL) has received a significant credit rating upgrade from ICRA Limited. The rating agency assigned an [ICRA]AAA; Stable rating to SFL's Rs. 5,000 crore Non-Convertible Debenture (NCD) Programme. Additionally, ICRA reaffirmed the [ICRA]AAA; Stable rating for the company's existing Rs. 2,975 crore NCD Programme and its Fixed Deposit Programme.
These ratings reflect SFL's strong leadership in the pre-owned commercial vehicle financing segment, its established track record, and a granular retail loan book. The company's robust capitalisation profile, bolstered by a ~Rs. 39,618 crore infusion from MUFG Bank Ltd in April 2026, also contributed to the positive rating action. SFL's net interest margin (NIM) rose to 8.6% in Q1 FY2027 from 7.5% in FY2026, and its return on average managed assets (RoMA) improved to 3.9% in Q1 FY2027 from 3.1% in FY2026 on a standalone basis.
ICRA noted SFL's diversified product offerings, including CV financing (47%), passenger vehicle finance (22%), and loans to MSMEs (13%). The company maintains a strong liquidity position with Rs. 22,192 crore in lien-free on-balance sheet liquidity as of June 30, 2026. The stable outlook on the rating is based on ICRA's expectation of SFL maintaining strong capitalisation and a healthy earnings profile while continuing to scale its operations.
A plain-language summary of a public exchange filing by Shriram Finance Limited. Read the original for the full detail.