As part of its Sundaram 75 strategic roadmap, TSF Group’s Sundaram Finance is evaluating diversification into other secured products such as gold loans, accelerating used vehicle financing, grow lending to MSMEs, and expand geographically beyond South India.
“We’ve evaluated gold loans as part of the Sundaram 75 plan. We’ll have to take it to our board; at present, we looked at a range of possibilities as adjacencies,” Rajiv C Lochan, MD, Sundaram Finance, told media persons. The Sundaram 75 Plan, which the NBFC is now executing as it turns 75 in 2029, is also intended to help build consistency in execution and ensure that SF is able to decouple from macroeconomic shocks, he added.
As for its progress, the ‘beyond wheels’ portfolio, mainly MSME lending, is now about 15 per cent of their disbursements and SF has also added about 55-60 branches or so, with a large part of these in North India, Lochan said.
He was speaking at the announcement of the annual results of the NBFC.
Net profit up 10%
On a consolidated basis, net profit for FY26 grew by 10 per cent to ₹2,059 crore as compared to ₹1,879 crore in FY25. During FY26, the company also provided for ₹75 crore under “exceptional items” towards the impact of the new Labour Codes. The consolidated results include results of its subsidiaries Sundaram Home Finance, Sundaram Asset Management and Royal Sundaram General Insurance.
On a standalone basis, net profit for FY26 stood at ₹1,834 crore against ₹1,543 crore in FY25. Profit for Q4FY26 was ₹608 crore as against ₹546 crore in Q4FY25.
The profit came on the back of robust disbursement growth in both Q4 and FY26 as the second half of the fiscal saw a boom in vehicle sales due to GST rationalisation.
Disbursements for FY26 grew by 14 per cent to ₹32,321 crore, its highest ever. Disbursements for Q4FY26 alone grew by 17 per cent to ₹8,051 crore. Assets under management (AUM) grew 16.4 per cent to ₹59,908 crore.
Fuel price hike
As for impact of the rising fuel price hikes on their business, Lochan said they are not seeing any stress at the moment, but monitoring closely by maintaining close customer contact and supporting them, wherever required, with restructuring or moratoriums.
SF’s gross and net NPA, as per RBI norms, are 2.14 per cent and 1.27 per cent, respectively, against 2.17 per cent and 1.38 per cent as of March 2025.
“Our group companies in asset management, general insurance and home finance have continued to record strong results. We continue to rely on our time-tested approach of steady and sustainable growth with best-in-class asset quality and consistent profitability,” said Harsha Viji, Executive Vice-Chairman, Sundaram Finance, said in a statement.
The board declared a final dividend of ₹24 per share (240 per cent).
Shares of Sundaram Finance closed the trading day at ₹4,394 per share, down around 2.2 per cent on the NSE.
Published on May 25, 2026