Shriram Finance Share Price Jumps 2% on Stronger Business Profile, Fitch Upgrade

Shriram Finance Limited's share price witnessed a notable uptick on May 14, 2025, rising 2.04% to hit a high of ₹655.30 during intraday trade. The stock opened at ₹639.50, higher than its previous close of ₹633.60, and maintained upward momentum throughout the session with a volume-weighted average price (VWAP) of ₹649.05.

Fitch Upgrade Details

Fitch Ratings has upgraded the Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) of Shriram Finance Ltd (SFL) from ‘BB’ to ‘BB+’, assigning a ‘stable’ outlook.

This revision reflects a steady enhancement in the company's standalone credit profile over recent years, marked by greater funding diversity, strengthened risk management practices, consistent asset quality, and improved profitability.

Merger Synergies and Risk Controls Strengthen SFL

Fitch highlighted that SFL has demonstrated stable performance following its merger with Shriram City Union Finance Ltd (SCUF) in 2022.

The company’s deep-rooted presence in used commercial vehicle financing, experienced leadership, and solid internal controls have played a pivotal role in its improved financial resilience.

Diversified Funding Position SFL for Growth

The rating agency emphasised that SFL has tightened its loan monitoring and risk management frameworks, enabling it to better handle macroeconomic volatility while maintaining asset quality. These refinements have helped lower delinquencies and are expected to limit future credit losses.

Furthermore, SFL’s diversified funding approach has helped reduce liquidity risks. Fitch believes that India’s broad-based economic growth and a supportive environment for non-bank financial institutions (NBFIs) will continue to bolster SFL’s growth outlook.

Read More: Best Bank Stocks in May 2025: Indian Bank, Jammu and Kashmir Bank and More – Based on 5Y CAGR.

Conclusion 

Fitch’s upgrade underscores Shriram Finance’s progress in building a more robust and risk-aware operational framework. With enhanced governance, disciplined lending, and a strong market position, SFL appears well-positioned for sustained growth in India’s evolving financial landscape.   

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