# Sundaram Finance Q2 Net Profit Rises 5.9% to ₹517 Crore as NII Climbs 21.1% > Sundaram Finance posted a 5.9% rise in Q2 net profit to ₹517 crore, with net interest income up 21.1% and gross Stage 3 assets easing to 1.84%. - Published: 2026-11-04T11:58:17+00:00 - Section: Earnings & Results - Author: News Desk - URL: https://newsforagent.com/news/2026-11-04/sundaram-finance-q2-profit-rise - Source: [CNBCTV18](https://www.cnbctv18.com/market/earnings/sundaram-finance-q2-net-profit-rises-5pc-to-rs517-crore-nii-up-21pc-20026988.htm) ## Key takeaways - Sundaram Finance reported a 5.9% year-on-year rise in net profit to ₹517 crore for Q2FY27. - Net interest income grew 21.1% to ₹1,016 crore from ₹839 crore a year earlier. - Assets under management rose 19% to ₹65,992 crore in H1FY27, with disbursements up 28% in Q2FY27. Sundaram Finance reported a 5.9% year-on-year rise in net profit to ₹517 crore for the second quarter of FY27, up from ₹488 crore a year earlier, [CNBC TV18](https://www.cnbctv18.com/market/earnings/sundaram-finance-q2-net-profit-rises-5pc-to-rs517-crore-nii-up-21pc-20026988.htm) reported on November 4, 2026. Net interest income rose 21.1% to ₹1,016 crore from ₹839 crore. ## Sundaram Finance's Q2 Lending and Asset Quality [Sundaram Finance](https://akta.pro/company-profiles/0006esr/sundaram-finance) is a Chennai-headquartered non-banking financial company founded in 1954 that offers vehicle finance, SME and MSME loans, and retail fixed deposits. Assets under management grew 19% to ₹65,992 crore in H1FY27, according to a press release cited by CNBC TV18. Disbursements rose 28% year-on-year in Q2FY27 and 25% in the first half compared with H1FY26. Gross Stage 3 assets stood at 1.84% as of September 30, 2026, compared with 2.03% a year earlier. Net Stage 3 assets declined to 0.91% from 1.13%, and provision coverage improved to 51% from 45%. For H1FY27, profit after tax increased 21% to ₹997 crore, while return on assets improved to 2.86% from 2.72%. Harsha Viji, Executive Vice Chairman of Sundaram Finance, said domestic economic momentum remained strong in Q2FY27 despite an increasingly challenging global environment. He cited renewed tensions in West Asia, crude oil price volatility and tighter global financial conditions as factors that had increased inflationary and external-sector risks. 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." Sundaram Home Finance reported 21% growth in disbursements to ₹3,827 crore in H1FY27, with profit rising to ₹175 crore from ₹137 crore. Its gross Stage 3 assets rose to 1.39% from 1.24% a year earlier. [Sundaram Home Finance](https://akta.pro/company-profiles/0006ecz/sundaram-home-finance) separately reported a 20% increase in net profit to ₹90 crore for the quarter ended September 30, 2026, up from ₹75 crore, with disbursements up 31% to ₹2,199 crore, BusinessLine reported on October 29, 2026. ## Sundaram Finance's Branch and Product Expansion According to akta.pro [company records](https://akta.pro/company-data), Sundaram Finance added 55-60 new branches largely in North India in May 2026 under its Sundaram 75 strategic roadmap, which aims to diversify geographic concentration beyond the South and prepare for the company's 75th anniversary in 2029. The company is also expanding into electric vehicle small commercial vehicle financing to capture demand from rising fuel costs and EV adoption among fleet operators. ## Sundaram Finance's Deposit and Partnership Moves Sundaram Finance increased deposit interest rates on October 15, 2026, raising one-year tenures by 30 basis points and two-three-year tenures by 25 basis points, BusinessLine reported. Regular deposits rose from 6.7% to 7% for one year, while senior citizen rates increased from 7.20% to 7.50%. On October 1, 2026, Sundaram Finance partnered with GMT Engineers to offer financing for CNC bending machines, laser cutting systems, power presses and automation equipment, BusinessLine reported. The company also re-appointed P. N. Srikant as Chief Compliance Officer and Company Secretary for a five-year term effective from August 11, 2026, ScanX reported. ## What Comes Next for Sundaram Finance Sundaram Home Finance plans to double its Emerging Business branch network in Andhra Pradesh from 10 to 20 by the end of this year, The Times of India reported on August 18, 2026. The company also aims to nearly double its Emerging Business disbursements to about ₹200 crore in Central Tamil Nadu this year, BusinessLine reported on September 25, 2026. ## Companies in this story - [Sundaram Finance company profile](https://akta.pro/company-profiles/0006esr/sundaram-finance) · website: https://www.sundaramfinance.in - [Sundaram Home Finance company profile](https://akta.pro/company-profiles/0006ecz/sundaram-home-finance) · website: https://www.sundaramhome.in - [Royal Sundaram General Insurance Co. Limited company profile](https://akta.pro/company-profiles/0000pu8/royal-sundaram-general-insurance-co-limited) · website: https://www.royalsundaram.in --- News for Agent · https://newsforagent.com/llms.txt