NBFC stock hits 5% upper circuit after announcing Q1 results

Synopsis:
Shriram Asset Management Company reported its Q1 FY26 results, approved a strategic shareholders agreement with Sanlam, and undertook significant board-level changes, including new appointments, resignations, and a roadmap for expanded governance via postal ballot.

Introduction

The  Asset Management Company’s Board approved key business decisions, including Q1 FY26 results, Sanlam’s stake acquisition, leadership changes, and a postal ballot. Strong Q1 growth, driven by demand, value-added products, and capacity expansion, highlights solid execution and future readiness.

With a market capitalization of Rs. 884 cr, the shares of Shriram Asset Management Co Ltd are currently trading at Rs. 522.90 per share, gaining 5% in today’s market, making a high of Rs. 533.15  from its previous closing of Rs. 507.80 per share.

News

On July 30, 2025, the Board of Directors of Shriram Asset Management Company Ltd approved several key resolutions. The unaudited financial results for Q1 FY26 were adopted in compliance with SEBI regulations.

A strategic Shareholders Agreement was executed with Shriram Credit Company Ltd (SCCL) and Sanlam Emerging Markets (Mauritius) Ltd (SEMML), following SEMML’s acquisition of 38,88,889 equity shares for Rs. 105 crore, increasing its stake to 23% and establishing joint control with SCCL. 

The Board also approved amendments to the Articles of Association, subject to shareholder approval. Several leadership appointments were made, including Mr. Pragadasan Shanmugam as Non-Executive Director, Ms. H. K. Gayathri and Ms. Roopa Venkat Krishnan as Independent Directors, and the re-appointment of Mr. Kartik Jain as Managing Director & CEO for three years starting January 9, 2026. Lastly, a Postal Ballot was approved to seek shareholder approval for key resolutions, including the Articles amendment and appointments.

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Q1FY26 Results

The unaudited financial results for Q1 FY26 show a total income of Rs. 3.62 crore and total expenditure of Rs. 6.38 crore, resulting in a net loss of Rs. 2.76 crore. The basic earnings per share stood at Rs. 1.73.

On a quarter-on-quarter (QoQ) basis, total income increased significantly from Rs. 1.15 crore in Q4 FY25, while expenditure rose marginally from Rs. 6.28 crore to Rs. 6.38 crore.

Comparing year-on-year (YoY) with Q1 FY25, total income increased from Rs. 2.26 crore, but losses widened slightly as the PAT moved from Rs. 2.52 crore to Rs. 2.76 crore loss in Q1 FY26. 

Reported a strong QoQ performance, with sales up 224% and net loss reduced by 47%, indicating improving operational efficiency. However, on a YoY basis, while sales grew by 61%, net loss increased by 10%.

About the company

Shriram Asset Management Company Limited is an integral part of Chennai- based Shriram Group which has a significant presence in financial services such as commercial vehicle, consumer finance, life and general insurance, stock broking, chit funds and distribution of financial products.

It also provides mutual fund and portfolio management services, catering to both retail and institutional investors. It offers a range of equity, debt, and hybrid investment schemes aimed at long-term wealth creation.

The company also provides financial planning and advisory services, focusing on goal-based investing and risk-managed returns through a research-driven approach.

Written by Manideep Appana

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