Shriram Finance, one of India’s largest retail non-banking financial companies (NBFCs), is targeting a gold loan portfolio of around ₹20,000 crore over the next two years and expects its electric vehicle (EV) financing business to expand significantly as it strengthens both segments.
Umesh Revankar, executive vice-chairman of Shriram Finance, told Business Standard that gold loans currently account for around 2.5 per cent of the company’s overall loan book. The lender aims to increase their share to 5 per cent of its assets under management (AUM) over the next two years.
“We are growing the book at around 30 per cent year-on-year. Our target is to reach a significant portfolio size of around 5 per cent or around ₹20,000 crore in the next two years,” Revankar said.
Monthly disbursements under the company’s EV financing business have risen to around ₹350 crore, from ₹30-40 crore when it began lending to the segment. “We expect it to reach ₹5,000 crore soon,” he said. Automobile-related financing accounts for about 75 per cent of Shriram Finance’s total AUM.
Revankar said the company was exploring tie-ups with e-commerce companies and other bulk buyers of electric vehicles.
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“EV financing is doing well for us. People are increasingly comfortable switching to electric two-wheelers, three-wheelers and four-wheelers. I don’t see much hesitation because batteries come with an eight-year warranty, and replacement costs are also coming down. So, overall, we are seeing a positive shift,” he said.
In April 2026, Japan’s MUFG Bank, a subsidiary of Mitsubishi UFJ Financial Group, completed its investment of nearly $4.4 billion for a 20 per cent stake in Shriram Finance. Revankar said there were no discussions on increasing MUFG’s stake. However, the lender expects the partnership to help it connect with Japanese companies, including Suzuki, Toyota, Honda and Yamaha, with which MUFG already has relationships.
Shriram Finance reported a 59 per cent rise in consolidated net profit to ₹3,684 crore in the second quarter of 2026-27 (Q2FY27), from ₹2,314 crore in the corresponding quarter of FY26. Revankar attributed the performance to an improvement in economic activity and stronger demand following the goods and services tax reforms.
Total AUM rose 17 per cent year-on-year to ₹3.29 trillion as of September 30, compared with ₹2.81 trillion a year earlier. AUM stood at ₹3.14 trillion at the end of the first quarter of FY27.
“Vehicle sales grew by around 15 to 25 per cent across segments, including two-wheeler, car, trucks, and tractors. Even construction equipment demand has gone up for the first time in a year. I believe that even in October and November, because of the festive season, the demand will remain good,” he said.
While 7 per cent gross domestic product growth was a positive indicator for the economy, rising raw material costs and general inflation were prompting original equipment manufacturers to raise vehicle prices.
“Demand may not be at the same rate as what it was for the last one year. It will be a single-digit growth, but I think even single-digit growth on a higher base is good for us,” Revankar said.