Market capitalization of nine largest companies grew by 2.51 trillion rupees, Bajaj Finance became the main beneficiary

Shriram Finance reported a significant increase in net profit in the first quarter of fiscal year 27 (Q1FY27), reaching 34,446 crore rupees, which represents an increase of 59.79% compared to the same period last year. Compared to the previous quarter, profit increased by 14.30%.

Financial Performance and Income

The company's Net Interest Income (NII) grew by 33.67% year-on-year and by 15.18% quarter-on-quarter, amounting to 8,055.7 crore rupees. The total income of the Non-Banking Financial Company (NBFC) increased by 16.21% year-on-year, reaching 13,412.11 crore rupees.

The Net Interest Margin (NIM) improved to 9.04%, up from 8.61% in Q4FY26 and 8.11% in Q1FY26.

Growth in Assets Under Management

The NBFC's Assets Under Management (AUM) expanded by 15.26% year-on-year and by 3.8% quarter-on-quarter, reaching 3.14 trillion rupees. Among the commercial vehicle segments, AUM grew by 19.4% year-on-year and by 3.8% quarter-on-quarter, totaling 1.47 trillion rupees. Passenger vehicle AUM showed growth of 21.22% year-on-year, reaching 68,650.2 crore rupees.

Furthermore, AUM in the Micro, Small, and Medium Enterprises (MSME) segment increased by 8% year-on-year to 41,962.4 crore rupees, while AUM in the gold segment grew by 45.78% year-on-year, amounting to 7,513.72 crore rupees.

Funding Sources and Asset Quality

The volume of public deposits attracted by the company increased by 14.3% year-on-year to 72,070 crore rupees. Funds raised through Non-Convertible Debentures (NCDs) rose by almost 20% year-on-year, reaching 39,610 crore rupees.

The company's asset quality remained relatively stable during June. The proportion of Stage 3 assets slightly increased to 4.64% from 4.58% in March. Net Non-Performing Assets (NPAs) remained unchanged at 2.33% compared to the previous quarter.

Capital Adequacy Ratios

The overall Capital to Risk-weighted Assets Ratio (CRAR) improved to 34.17% in the reporting quarter, compared to 20.40% in Q4FY26 and 20.79% in Q1FY26.

The total market value of five of India's ten most expensive companies increased by 1.54 trillion rupees last week, with Tata Consultancy Services (TCS) showing the largest growth.

Indian Stock Market Dynamics

This growth occurred against a backdrop of an overall positive trend in the stock market. Last week, the BSE Sensex index rose by 582.06 points, which is 0.75 percent, and the NSE Nifty index increased by 127.4 points, or 0.52 percent.

According to Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, Indian stock markets ended the week on a stable note, continuing their recovery despite heightened geopolitical tensions, high crude oil prices, and persistent uncertainty regarding the global interest rate forecast. He noted that sentiment was supported by encouraging first-quarter earnings for the fiscal year 27 IT sector, as well as renewed interest in buying financial stocks and the resilience of domestic economic fundamentals.

Changes in Company Valuations

Among the companies whose value increased were Reliance Industries, ICICI Bank, State Bank of India, Tata Consultancy Services (TCS), and Bajaj Finance. Meanwhile, the valuation of firms such as HDFC Bank, Bharti Airtel, Life Insurance Corporation of India (LIC), Larsen & Toubro, and Hindustan Unilever decreased.

Details of Growth and Decline

TCS added 72,072.3 million rupees, bringing its market capitalization to 820,672.70 million rupees. The country's largest IT company reported a 4.61 percent rise in net profit for the June quarter, reaching 13,349 crore rupees, and forecasted improved demand, which had been affected by the crisis in West Asia, in the current quarter.

ICICI Bank's value increased by 29,062.06 million rupees, reaching 1,034,441.77 million rupees. Reliance Industries' market capitalization jumped by 23,884.93 million rupees, amounting to 1,795,091.26 million rupees. Bajaj Finance increased its capitalization by 21,946.5 million rupees, reaching 657,274.28 million rupees, and State Bank of India grew by 7,338.34 million rupees, reaching 963,768.78 million rupees.

However, Larsen & Toubro's market capitalization decreased by 18,097.72 million rupees, standing at 524,840.68 million rupees. LIC's value fell by 12,080.75 million rupees to 548,124.30 million rupees. Bharti Airtel lost 7,706.45 million rupees, and HDFC Bank slightly declined by 7,084.61 million rupees, reaching 1,262,369.81 million rupees. Hindustan Unilever's market capitalization dropped by 1,221.79 million rupees to 503,775.86 million rupees.

Reliance Industries remained the most valuable company, followed by HDFC Bank, Bharti Airtel, ICICI Bank, State Bank of India, TCS, Bajaj Finance, LIC, Larsen & Toubro, and Hindustan Unilever.