Q4 results impact: Shriram Finance, L&T Finance shares decline up to 9%; all you need to know

Shares of Shriram Finance and L&T Finance tumbled on Monday, April 28, after both the companies reported their March quarter earnings last week.

Last week, Shriram Finance posted a 6% year-on-year (YoY) jump in its consolidated net profit for the March quarter of the financial year 2024-25 (Q4 FY25) to ₹2,143.77 crore as against ₹2,021.28 crore reported in the year-ago quarter.

Following this, several brokerages have maintained their outlook for the company but have cut their earnings estimates.

This made the investors cautious, which led to the decline in its stock price by 8.32% to ₹600.7 apiece on the NIFTY50 index. It has lost 9% from its previous closing price.

The NBFC major’s board had also recommended a final dividend of ₹3 per equity share with a face value of ₹2 each for the financial year ended March 31, 2025. The record date is set as July 11, 2025. The final dividend is subject to approval by the company shareholders at its 46th AGM.

The gross non-performing asset (NPA) ratio of Shriram Finance improved to 4.55% in the reporting period against 5.38% in Q3 FY25, while its net NPA ratio was at 2.64% against 2.68% in the December quarter.

During the quarter, the NBFC's total income increased to ₹4,027 crore from ₹3,676 crore a year ago, L&T Finance said in a regulatory filing.

At 10:27 AM, shares of the company were trading 5.09% lower at ₹164.19 apiece on the 50-share index.

“Looking forward, our focus remains on delivering quality services to our customers. We are confident that our commitment to operational excellence, customer centricity, strong governance, and prudent risk management, all powered by a digital-first approach, will sustain our growth momentum as we continue to build a customer-focused, digital-native financial services powerhouse,” the company said in a statement.

In FY25, the retail book witnessed a strong growth of 19% YoY to close at ₹95,180 crore, and disbursements grew by 11% YoY to ₹60,040 crore. Both these factors led to improved retailisation of the total lending book to 97%.