Sundaram Finance Q2 FY27 Results (NSE: SUNDARMFIN)
Signal: Earnings grew
The read
The trajectory remains credit-cost and funding-cost supportive: consolidated revenue rose to ₹2,737.55 Cr, +14.7% YoY, while finance cost fell 5.7% and provisions fell 9.4%, lifting PAT to ₹516.66 Cr, +23.9% YoY; however, sequential PAT declined 18.8% from ₹636.19 Cr and H1 operating cash outflow widened to ₹4,358.39 Cr.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,737.55 Cr | +14.7% | +3.5% |
| Net profit | ₹516.66 Cr | +23.9% | |
| EPS | ₹46.88 | N/A | |
| EBIT margin | 0 |
P&L walk
Consolidated revenue from operations rose to ₹2,737.55 Cr, +14.7% YoY and +3.5% QoQ, while finance cost fell 5.7% YoY and provisions fell 9.4% YoY; PAT reached ₹516.66 Cr, +23.9% YoY, helped by lower funding and credit costs.
Segments
Asset Financing drove the group with ₹2,514.07 Cr of revenue and ₹648.76 Cr of segment result, while Others contributed ₹224.18 Cr of revenue and ₹96.23 Cr of result; the core segment supplied approximately 87% of consolidated segment result.
Key positives
- Consolidated revenue from operations reached ₹2,737.55 Cr, +14.7% YoY and +3.5% QoQ, with Asset Financing revenue at ₹2,514.07 Cr.
- Finance cost declined to ₹1,175.97 Cr, -5.7% YoY, while consolidated impairment/provisions declined to ₹126.67 Cr, -9.4% YoY.
- Gross Stage 3 Loans improved to 1.84% from 2.03% YoY and Net Stage 3 Loans to 0.91% from 1.13%.
- Standalone operating margin expanded to 51.88% from 50.32% YoY, while standalone PAT rose 20.5% YoY to ₹475.07 Cr.
Key concerns
- Consolidated PAT declined 18.8% QoQ to ₹516.66 Cr from ₹636.19 Cr, and EPS declined to ₹46.88 from ₹57.71.
- Capital adequacy declined to 18.52% from 19.27% YoY while standalone debt-equity increased to 4.36x from 4.00x.
- H1 consolidated operating cash outflow widened to ₹4,358.39 Cr from ₹2,206.28 Cr despite H1 PAT of ₹963.33 Cr.
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