SUNDARMFIN
Large CapSundaram Finance Limited
Financial Services
Sundaram Finance is a diversified financial services group with a 72-year heritage, focused on lending (asset finance, commercial lending, working capital) to underserved Indian entrepreneurs. The group also operates in general insurance, home finance, and asset management, with a total AUM exceeding Rs 1,65,000 Cr.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 30/100Rev +13% YoY · PAT +0% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,560 Cr | +13.3% | +1.8% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹554 Cr | +0.2% | +2.4% |
| PAT margin | 21.6% | -284 bps | +12 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
FY26 saw strong AUM growth (+16.4% YoY), robust disbursements (+14% YoY), and improved profitability (PAT +19% YoY, ROA 3.03%, ROE 17.5%). Asset quality remained stable with Gross Stage 3 at 1.44%.
The company delivered strong growth across key metrics while maintaining best-in-class asset quality and improving profitability. Management's focus on prudent asset and customer mix, coupled with a strong deposit base and 'AAA' rating, supports the long-term thesis despite some H1FY26 asset quality pressure and muted construction equipment segment.
Disbursements by Asset Type (Mar-26)
Latest issuer-disclosed distribution across 5 reported categories.
Strong Industry Sales Growth
MHICV TIV grew 14.5% YOY, LSCV grew 14.9% YOY, passenger cars grew by ~11% YOY, and tractors grew by 29.3% YOY in FY26.
Focus on Underserved Entrepreneurs
Lending business focused on the underserved but aspiring Indian entrepreneur (road transport operator, infrastructure contractor, small farmer, MSME owner).
Technology-enabled Approach
Technology-enabled and data-powered approach to a high-touch customer approach.
Branch Network Expansion
Number of branches increased to 763 as of Mar-26 from 710 as of Mar-25.
Staff Strength Increase
Number of staff increased to 7,653 as of Mar-26 from 7,293 as of Mar-25.
Improved Economic Activity
In the second half of FY26, beginning in Q3, asset quality stabilized as economic activity and cash flows for businesses improved.
Improving Credit Environment
GNPA ratios declined across segments, aided by improved recoveries, tighter origination standards, and an improving credit environment in H2 FY26.
Strong Deposit Customer Connect
Legacy of deep deposit customer connect and loyalty with 80% renewal rate across offerings.
Muted Construction Equipment Segment
The construction equipment category witnessed muted conditions with backhoe loaders declining 7% YOY.
H1FY26 Asset Quality Pressure
Asset quality pressure remained relatively high within the broader financial system in the first half of FY26.
Impact of New Labour Codes
Exceptional item of ₹75 crores considered for incremental impact of the new Labour Codes in FY26.
Asset Quality Deterioration
Asset quality pressure remained relatively high within the broader financial system in the first half of FY26.
Regulatory Changes
Exceptional item of ₹75 crores considered for incremental impact of the new Labour Codes.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for assessing overall annual growth and profitability trends in financial services, especially given seasonal demand in certain asset classes. QoQ is relevant for tracking sequential momentum in disbursements, NII, and for monitoring asset quality stabilization observed in H2 FY26.
AUM Growth (Standalone)
Assets under management stood at ₹59,908 crores as on 31st March 2026, a 16% increase year-on-year from ₹51,476 crores in Mar 2025.
Disbursements Growth (Standalone)
Disbursements for FY26 grew 14% to ₹32,321 crores (vs ₹28,405 crores in FY25). Q4FY26 disbursements grew 17% to ₹8,051 crores (vs ₹6,873 crores in Q4FY25).
Net Interest Income (NII) Growth
Net interest income grew by 21% to ₹3,376 crores in FY26 from ₹2,793 crores in FY25. Q4FY26 NII growth was 20% to ₹901 crores.
Gross Stage 3 Assets
Gross stage 3 assets as on 31st March 2026 stood at 1.44% with provision cover of 53% (vs 1.44% with 49% provision cover as of 31st March 2025).
Optimizing Margins
We are ensuring prudent focus on asset class mix as well as customer segment mix to optimize our margin.
Cost of Borrowing Management
Meticulous management of our cost of borrowing consistent with our 'AAA' rating.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| AUM Growth (Standalone) | 16.4% YoY | Sustained double-digit growth, indicating continued market penetration and demand for financing. |
| Gross Stage 3 Assets | 1.44% | Any deterioration from current stable levels, especially given H1FY26 pressures and the focus on underserved segments. |
| Cost-to-income ratio | 28.71% | Continued efficiency improvements and maintenance of best-in-class levels. |
| Disbursement Growth | 14% YoY | Continued momentum across key segments, particularly in MHCV and Retail CV, and recovery in construction equipment. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
41NeutralSMA20 -11.8% / mo · near 52W low
Technical chart
SUNDARMFINweekly · 5Y-8.2%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 39.
- SMA20 falling (~13.3% over last month) — short-term momentum negative.
- RSI(14) at 39 — sideways, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- Within 5% of 52-week low — testing support.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 31.3%.
- Growth contributes 11/25 to the score.
- Quality contributes 7/20 to the score.
Main drags
- Altman Z is 0.7, in distress territory.
- Balance sheet is weaker at 0/15; verify the latest quarterly trend.
- Cash flow is weaker at 2/10; verify the latest quarterly trend.
NBFC valuation: P/B, ROA, borrowing cost, and asset quality
Lenders can look optically cheap before credit losses emerge, so valuation is tied to book quality.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 19th percentile of the scored universe and 35th percentile within Financial Services. Main check: balance sheet trust is weak at 22/100.
Mixed Trust Lite: Promoter pledge is zero. Key concern: Operating cash flow is negative at ₹-5892 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Financial Services: 35th pctile, median 62 · Large: 12th pctile, median 74
15 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸4/4 latest quarters had positive YoY PAT growth.
- ▸Latest 3 quarters had positive YoY PAT growth.
Trust risks
- ▸Operating cash flow is negative at ₹-5892 Cr.
- ▸Debt/equity is 4.68.
- ▸Altman Z is 0.69.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 21.40
- P/B
- 3.03
- EV/EBITDA
- 466.82
- Market Cap
- 45202.00Cr
Profitability
- ROE
- 15.10%
- ROCE
- 9.45%
- ROA
- 2.19%
- Dividend Y
- 0.98%
Growth (CAGR)
- Revenue 5Y
- 13.00%
- EPS 5Y
- 13.00%
- Revenue 3Y
- 21.00%
- EPS 3Y
- 17.00%
Balance Sheet
- Debt/Equity
- 4.68
- Interest Coverage
- —
- Altman Z
- 0.69
- Book Value
- 1341.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 3/5
- OCF
- -5892.00 Cr
- EPS TTM
- 185.32
Shareholding
- Promoter Hold
- 37.21%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 4%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.