Shriram Finance, one of India's largest retail non-banking financial companies (NBFCs), aims to grow its gold loan portfolio to approximately 20,000 crore rupees over the next two years. Concurrently, the company is actively developing its electric vehicle (EV) financing segment and exploring partnership opportunities with Japanese automakers.
Wash Revankar, Executive Vice Chairman of Shriram Finance, told Business Standard that gold loans currently constitute about 2.5 percent of the company's total lending portfolio. The goal is to increase this share to 5 percent of Assets Under Management (AUM) within the next two years.
Revankar noted that the book is growing at approximately 30 percent year-on-year and emphasized that the target portfolio size of around 5 percent or 20,000 crore rupees should be achieved in two years. Regarding the EV financing business, monthly disbursements have risen to approximately 350 crore rupees, up from 30–40 crore rupees at the initial stage of lending in this segment. He forecasts that this figure will soon reach 5,000 crore rupees.
Vehicle financing accounts for about 75 percent of Shriram Finance's total AUM. Furthermore, the company is considering entering into agreements with online retailers and other major electric vehicle buyers.
According to Revankar, the EV sector is showing good results as consumers are increasingly willing to switch to electric two-, three-, and four-wheeled vehicles. He attributed this to batteries having an eight-year warranty period and the decreasing cost of replacement, leading to overall positive changes.
In April 2026, MUFG Bank, a subsidiary of Japan's Mitsubishi UFJ Financial Group, completed an investment of nearly $4.4 billion to acquire a 20 percent stake in Shriram Finance. However, Revankar clarified that there were no discussions about increasing MUFG's stake. Nevertheless, this partnership is expected to help the company establish contacts with Japanese corporations such as Suzuki, Toyota, Honda, and Yamaha, with whom MUFG already has business relationships.
Shriram Finance reported a 59 percent rise in consolidated net profit, reaching 3,684 crore rupees in the second quarter of FY27, compared to 2,314 crore rupees in the same quarter of FY26. Revankar linked this success to improved economic activity and higher demand following Goods and Services Tax reforms.
Total AUM increased by 17 percent year-on-year, reaching 3.29 trillion rupees as of September 30, compared to 2.81 trillion rupees the previous year. By the end of Q1 FY27, AUM stood at 3.14 trillion rupees.
He also noted that vehicle sales grew by approximately 15–25 percent across all segments, including two-wheelers, cars, trucks, and tractors. Demand for construction equipment also rose for the first time in a year. Revankar expressed confidence that demand will remain high due to the festive season in October and November.
Despite GDP growth of 7 percent being a positive sign for the economy, rising raw material prices and general inflation forced original equipment manufacturers to increase vehicle prices. Revankar suggested that demand might not grow as fast as in the previous year, but he believes that even single-digit growth on a higher base is favorable for the company.
