Sundaram Finance Q1 FY27 Results (NSE: SUNDARMFIN)
Signal: Earnings grew
The read
PAT beat on the back of a 277 bps operating margin expansion (spread widened) and a 33.7% drop in provisions, offsetting modest revenue growth of 9%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,560.4 Cr | 9.0% | -3.2% |
| Net profit | ₹554.17 Cr | 16.6% | |
| EPS | ₹50.28 | 16.6% |
P&L walk
Core asset financing spread improved 277 bps YoY, driving operating profit growth ahead of revenue.
Segments
Asset Financing segment result jumped 26.8% YoY to ₹662.35 Cr, driving the consolidated profit; 'Others' also grew 13.2% YoY but is a smaller contributor.
Key positives
- Operating margin (spread) expanded ~277 bps YoY to 53.25% due to revenue growth outpacing finance cost growth.
- GNPA improved from 1.91% to 1.71% YoY, reflecting better asset quality.
- PAT grew 16.6% YoY, with EPS tracking exactly, indicating no equity dilution.
Key concerns
- Revenue growth of 9% YoY decelerated from 13.3% in Q4FY26; sequential revenue declined 3.2% QoQ.
- Net profit margin contracted 240 bps QoQ due to higher tax and other expenses in the sequential quarter.
- Capital adequacy ratio fell 152 bps YoY to 18.49%, though still above regulatory minimum.
Research and educational content only. Not investment advice.