Sundaram Finance Q2 net profit soars to Rs 475 cr

CHENNAI: Sundaram Finance reported a net profit of Rs 475 crore for Q2FY27, a 21% growth, despite a disruptive global environment.

Disbursements of the Chennai-based entity grew by 25% to Rs 19,302 crore in H1FY27 while it grew by 28% in Q2FY27 to Rs 10,355 crore.

AUM grew 19% to Rs. 65,992 crore while profit after tax closed at Rs 997 crores, up by 21% over H1FY26.

“Domestic economic momentum remained strong in Q2FY27 despite an increasingly challenging global environment. Renewed tensions in West Asia, crude oil price volatility and tighter global financial conditions increased inflationary and external-sector risks,” said Harsha Viji, executive vice chairman.

Return on assets closed at 2.86% in H1FY27 as against 2.72% for H1FY26 and capital adequacy at 18.5% remained quite comfortable.

Rajiv Lochan, managing director said, “Our outlook for H2 is constructive on growth coupled with a need for monitoring external factors around geopolitical tensions, monetary policy direction and the impact to sentiment of the below normal monsoon. We have entered H2 with strong momentum and a superior asset-quality position than last year.

As the rate cycle turns, our focus is to sustain growth, improve asset quality further and build resilience in profitability through disciplined pricing, optimal asset mix and early intervention on collections.”