Sundaram Finance expects better FY26 after a subdued 2025: MD Rajiv Lochan

Sundaram Finance Ltd. anticipates a stronger financial year in 2026 after a challenging 2025, focusing on growth and stability.

Chennai-based Sundaram Finance Ltd. hopes for a better financial year 2026 after a subdued financial year 2025, the company’s Managing Director Rajiv Lochan said on Monday.

The company, which is into providing finance for commercial vehicles, cars and utility vehicles, tractors and farm equipment among others, saw its standalone disbursements increase 9% to ₹28,405 crore in financial year 2025 from ₹26,163 crore in the comparable period last year.

Net profit grew 6% to ₹1,543 crore in the financial year 2025. Excluding an exceptional item in FY24, net profit grew 16% in FY2025. 

The company’s standalone asset under management grew by 17% to ₹51,476 crore as on March 31, 2025 from  ₹43,987 crore as on March 31, 2024. 

“FY25 was marked by subdued demand due to an extreme summer, general elections, a dull festive season and global volatility driven by tariff-related uncertainty as well as geopolitical complications. Customer outlook was, by and large, cautious and the burden of economic growth was largely supported by Government capex, which ended up at levels lower than the previous year,” Mr. Lochan said. 

“Looking ahead, we expect macroeconomic sentiments to improve on the rural front because of above normal monsoons forecasted by the IMD and strong procurement, and, on the urban front, due to an improvement in government spending on infrastructure as well as the income tax benefits announced in the union budget. As private consumption improves, private sector capex will likely pick up.  We are well positioned to continue our marathon running - steady growth, best-in-class asset quality and continued resilient profitability,” he added.

However, Mr. Lochan said global factors like tariff war and geopolitical issues would be key things to be cautious about.