# Shriram Finance Cuts Loan Growth Target to 15-17% Even as Q2 Profit Rises 59.4% > Shriram Finance cut its loan growth target to 15-17% after Q2 profit rose 59.4% to Rs 3,677 crore, leaving the stock at a 68% valuation discount to Bajaj Finance. - Published: 2026-11-01T00:52:10+00:00 - Section: Earnings & Results - Author: News Desk - URL: https://newsforagent.com/news/2026-11-01/shriram-finance-loan-growth-target-profit - Source: [Financial Express](https://www.financialexpress.com/market/stock-insights/59-4-profit-growth-68-valuation-discount-meet-bajaj-finances-smaller-rival/4374056/) ## Key takeaways - Shriram Finance's standalone net profit rose 59.4% year-on-year to Rs 3,677 crore in the September 2026 quarter. - Management guided to loan growth of 15-17%, citing a weak monsoon and the Middle East crisis, and the stock fell 1.9% to Rs 825. - Shriram Finance trades at 1.7 times standalone book value against 5.3 times for Bajaj Finance, a discount of nearly 68%. Shriram Finance cut its loan growth target to 15-17% for the coming period after reporting a 59.4% year-on-year rise in standalone net profit to Rs 3,677 crore for the September 2026 quarter, [Financial Express](https://www.financialexpress.com/market/stock-insights/59-4-profit-growth-68-valuation-discount-meet-bajaj-finances-smaller-rival/4374056/) reported. The stock fell 1.9% to Rs 825. Shriram Finance is a non-bank lender focused on commercial vehicle, gold and tractor loans, and competes with larger rival Bajaj Finance. ## Why Shriram Finance Guided Lower on Loan Growth Senior management gave the 15-17% outlook on the post-earnings conference call for the September 2026 results and described itself as "cautious", citing a weak monsoon and no sign of the Middle East crisis ending. The stock is hovering above its 52-week low of Rs 727.75, reached on October 31, 2025. Bajaj Finance has pointed to consolidated assets under management growth of 23% to 25%. Shriram Finance's standalone loan book grew nearly 17% year-on-year to Rs 3.29 lakh crore in the quarter, after 15.3% growth in the June 2026 quarter. Commercial vehicle loans rose 19.4% to Rs 1.53 lakh crore and made up 46.5% of the book, passenger vehicle loans rose 20.1% to Rs 71,541.9 crore and gold loans rose 68.2% to Rs 8,974.2 crore. Standalone net interest income rose 39.7% to Rs 8,415 crore, and the net interest margin was 9.5% against 8.19% a year earlier. Impairment on financial instruments rose to Rs 1,877.4 crore from Rs 1,333.3 crore, and the net NPA ratio was 2.3% against 2.49%. Bajaj Finance's standalone loan book grew 26% to Rs 4.26 lakh crore, with gold loans up 105% to Rs 24,195 crore, commercial vehicle and tractor finance up 89% to Rs 5,044 crore and rural consumer finance up 63% to Rs 14,392 crore. Its standalone net interest income rose 24.9% to Rs 12,150 crore and standalone net profit rose 30.3% to Rs 5,536.1 crore. [Shriram Finance](https://akta.pro/company-profiles/0000tn1/shriram-finance) said on October 24 that it will keep expanding gold lending despite rising stage 2 and 3 assets, which management attributed to customers adjusting to EMI-based repayment, NDTV Profit reported. ## Bajaj Finance's Loan Limit and Investor Meeting Bajaj Finance raised its personal loan maximum from Rs 55 lakh to Rs 75 lakh, The Tribune reported on October 30, 2026. On October 26, ScanX reported that Bajaj Finance would hold an investor meet in Mumbai on November 5, after Q2 FY27 consolidated profit after tax of ₹6,367 crore, up 29%, and AUM of ₹584,624 crore, up 26%. The company plans a qualified institutional placement of up to ₹11,700 crore and a warrant issue of up to ₹5,800 crore. ## What Comes Next for the Two Lenders Bajaj Finance's investor meet is set for November 5 in Mumbai. The RBI raised policy rates in October 2026, and both lenders face the question of whether they can pass the increase on to borrowers and protect net interest margins. ## Companies in this story - Bajaj Finance · website: https://www.bajajfinserv.in - [Shriram Finance company profile](https://akta.pro/company-profiles/0000tn1/shriram-finance) · website: https://www.shriramfinance.in --- News for Agent · https://newsforagent.com/llms.txt