Why Shriram Finance Share Price is Rising

Imagine waking up to a perfect morning. The weather is just right, your coffee tastes better than usual, and everything seems to fall into place. That one good moment sets the tone for the entire day, making you feel uplifted.

Something similar is happening with shareholders of Shriram Finance. Positive developments have created a ripple effect, boosted investor confidence, and is driving its share price upward.

Shriram Finance is one of India's largest non-banking financial companies (NBFCs).

It specialises in commercial vehicle loans, MSME financing, and retail lending. The company has a strong presence in rural and semi-urban markets, catering to a broad customer base. Over the years, it has built a reputation for steady growth and financial resilience.

Shriram Finance share price is under investors' radar as it surged 7.4% in the last five days.

The market is keenly watching this upward trend.

Let's take a closer look at the key factors behind this strong rally.

Find Raising Plans

Shriram Finance's strategic fundraising initiatives have played a key role in driving its share price higher. The company, which is India's largest truck financier, is actively raising funds to support its expansion plans.

It is currently in talks with banks to secure up to US$ 250 million (m) through a three-year loan. This move is part of its broader fundraising strategy and adds to the US$ 2 billion (bn) it has already raised through offshore borrowings in the current financial year.

In December 2024, the company successfully secured a US$ 1.3 bn multicurrency loan, marking the largest offshore loan ever taken by an Indian non-banking financial company (NBFC).

This significant capital boost is aimed at fueling double-digit credit growth and expanding lending to small and medium-sized enterprises (SMEs). By strengthening its funding base, Shriram Finance is ensuring steady growth in its loan book while maintaining a strong balance sheet.

The impact of these fundraising efforts is already visible in the company's financial performance. In the December 2024 quarter, Shriram Finance's loan portfolio grew 19% year-on-year (YoY), reaching Rs 2.5 trillion (tn).

At the same time, profits doubled compared to the previous year, highlighting robust financial health and efficient management.

These developments have significantly boosted investor confidence. Investors see Shriram Finance's proactive approach to securing funds as a strong signal of stability and future growth.

This sentiment is driving positive momentum in its stock price.

What Next?

Shriram Finance is focused on expanding its loan book while maintaining stable asset quality. The company aims for double-digit credit growth in the coming quarters.

Its primary focus will remain on commercial vehicle financing, MSME lending, and retail loans, which continue to show strong demand.

It is also looking at expanding its green financing portfolio, having launched a dedicated electric vehicle (EV) lending vertical. Though the EV segment financing is still in its early stages, the company plans to gradually scale it up while ensuring a structured approach to risk management.

Asset quality remains a key focus. While there were some seasonal fluctuations in the MSME and commercial vehicle segments, management expects an improvement in the fourth quarter as cash flows stabilize.

The company has maintained credit costs below 2%, which is among its best levels in recent years. Strong resale values of used vehicles have helped keep losses in check, and this trend is expected to continue, benefiting overall portfolio stability.

Shriram Finance's liquidity position is strong. The company has built up a liquidity buffer covering six months of liabilities, though it plans to moderate excess liquidity over the next two quarters.

This will help optimise net interest margins (NIMs), which have been impacted by higher cash holdings. The management expects NIMs to improve in the coming quarters as liquidity normalises and higher-yielding loans are disbursed.

The passenger vehicle financing segment is growing rapidly, and Shriram Finance is actively increasing its market share.

Demand in this segment is rising, particularly in semi-urban and rural areas. The company is confident that growth in this category will remain strong for the next three to four years due to the lack of investments in public transportation by state governments.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

How Shriram Finance Share Price has Performed Recently

In the past five days, Shriram Finance share price has rallied 7.4%. In the last month, it is up 13.7%.

In 2025, so far, its share price is up 6.4%. Additionally, its share price went up 26.9% in the last year.

The stock touched its 52-week high of Rs 730.4 on 27 September 2024 and a 52-week low of Rs 438.8 on 4 June 2024.

About Shriram Finance

Shriram Finance is the flagship company of the group which provides financial services such as commercial vehicle finance, passenger vehicle finance, SME finance, and retail lending (personal loans, gold loans, and two-wheeler loans).

It was established in 2022 as the result of a merger of Shriram City Union Finance and Shriram Capital into Shriram Transport Finance.

Shriram Group is an Indian conglomerate headquartered in Chennai. It was founded on 5 April 1974 by R. Thyagarajan, AVS Raja, and T. Jayaraman. The group had its beginning in chit funds business and later on entered the lending and insurance businesses.

For more details about the company, you can have a look at the Shriram Finance factsheet and Shriram Finance quarterly results on our website.

For a sector overview, read our finance sector report.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Happy investing.

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