Addressing a press conference here on 26 May 2025, he said his cautious optimism was based on a number of macroeconomic indicators which were showing early signs of revival.
Sundaram Finance Limited, a well-known non-banking financial company (NBFC), was positioning itself to harness growth opportunities arising out of a predicted strong monsoon, government infrastructure push and an anticipated uptick in private consumption.
Rajiv Lochan said that FY 25 was marked by significant disruptions caused by assorted factors such as an extended general election, subdued government capital expenditure, a muted festive season due to weak rural demand and cautious consumer sentiment, he said.
The outlook for FY26, however, seemed promising with an early onset of monsoon, favourable procurement, and Budget-induced tax relief for lower- and middle-income earners. All these were expected to drive rural recovery and urban spending, he added.
Sundaram Finance reported a 17 per cent year-on-year growth in Assets under management (AUM), reaching Rs 51,476 crore. Disbursements hit a record high of Rs 28,405 crore, a 9 per cent increase over FY24. Fourth-quarter disbursements were particularly strong, growing by 11 per cent. This signalled a renewed traction in the lending environment, he said
“The year that went by was complex with external shocks and domestic general elections suppressing demand. Yet, our disciplined focus on market share, operating efficiency and asset quality enabled us to deliver strong outcomes,” the managing director said.
Gross stage-3 assets as on March 31, 2025, stood at 1.44% with provision cover of 49% as against 1.26% as on March 31, 2024, with provision cover of 50%. Profits from operations grew 29% in FY25. Profit after tax registered a 6% rise in FY25, with net profit at Rs. 1,543 crores. After excluding exceptional items in FY24, profit after tax rose 16% in FY25. Return on assets closed at 2.85% in FY25 as against 3.18% for FY24 and capital adequacy, at 20.4%, remains quite comfortable.
“From a strategic perspective, Sundaram Finance is doubling down on its multi-engine growth model. Used vehicle financing, SME lending and leasing have begun to contribute meaningfully, now accounting for 8–9 per cent of total AUM,” he said.
“We remain conservative in segments like small commercial vehicles, where asset quality has weakened. But we see strong opportunities in tractors, used assets and non-wheels finance,” Lochan said. “The company is also leveraging technology to digitise workflows and improve underwriting and collection processes without compromising its hallmark of personal customer engagement,” he added.
“While global uncertainties — including geo-political tensions, crude oil volatility and tariff risks — remain on the radar, Sundaram Finance is optimistic about FY26. With steady liquidity, resilient profitability and a long-term growth philosophy, the company appears well-positioned to capitalize on the expected rebound during the upcoming festive season and beyond,” he said.
“In an environment where consistency and prudence often outshine short-term aggressiveness, Sundaram Finance continues to exemplify what many in the financial services space regard as “quiet excellence” — delivering sustainable performance, year after year, he added.