Shriram Finance Limited — Call Transcript 2026

Jan 1, 2026

==> picture [155 x 48] intentionally omitted <==

SEC/FILING/BSE-NSE/25-26/68A-B

January 01, 2026

BSE Limited

P. J. Towers, Dalal Street,Fort, Mumbai – 400 001. Scrip Code: 511218

National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot no. C/1, G- Block, Bandra- Kurla Complex, Mumbai – 400 051. NSE Symbol: SHRIRAMFIN

Dear Sirs,

Sub.: Transcript of conference call done on December 30, 2025.

Further to our letter dated December 30, 2025, regarding the audio link of the conference call we enclose herewith the transcript of the said call. The Transcript is also been uploaded on the Company website www.shriramfinance.in

Thanking you.

Yours faithfully,

For SHRIRAM FINANCE LIMITED

Digitally signed by BALASUNDA BALASUNDARARAO UPPU RARAO UPPU Date: 2026.01.01 15:39:18 +05'30' U BALASUNDARARAO COMPANY SECRETARY & CHIEF COMPLIANCE OFFICER

Encl.:a/a.

==> picture [597 x 48] intentionally omitted <==

==> picture [212 x 69] intentionally omitted <==

“Shriram Finance Limited

Business Update Conference Call” December 30, 2025

==> picture [115 x 38] intentionally omitted <==

==> picture [107 x 53] intentionally omitted <==

– MANAGEMENT: MR. UMESH REVANKAR EXECUTIVE VICE – CHAIRMAN SHRIRAM FINANCE LIMITED – MR. PARAG SHARMA MANAGING DIRECTOR AND – CHIEF EXECUTIVE OFFICER SHRIRAM FINANCE LIMITED – MR. SUNDER SUBRAMANIAN WHOLE-TIME – DIRECTOR AND CHIEF FINANCIAL OFFICER SHRIRAM FINANCE LIMITED – MR. SANJAY K MUNDRA EXECUTIVE DIRECTOR, – INVESTOR RELATIONS SHRIRAM FINANCE LIMITED

Page 1 of 14

Shriram Finance Limited December 30, 2025

==> picture [116 x 38] intentionally omitted <==

Moderator:

Ladies and gentlemen, good morning and welcome to the Shriram Finance Limited Conference Call. As a reminder, all participant lines will remain in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing star then zero on your touchtone telephone.

Please note that this conference is being recorded. I will now hand the conference over to Mr. Umesh Revankar, Executive Vice-Chairman, for opening remarks. Thank you and over to you, sir.

Umesh Revankar:

Yes, thank you. I'm Umesh Revankar here. Mr. Parag Sharma, MD, CEO and Sunder, WholeTime Director and CFO, along with Sanjay are with me. We can now begin Q &A session after initial remarks. So, good morning to everyone and I would like to share a few of my thoughts here.

As you know that Shriram had a merger of two listed entities in 2022. Shriram Transport Finance Company, which was mostly focused on vehicle and equipment financing. Shriram City Union Finance, who were into SME, two-wheeler and gold financing, we merged with the purpose that we will have a larger branch network, better reach and multiproduct.

The multiproduct was a strategy which we adopted and thereafter, post-COVID, you would have witnessed that we have been growing at around 16% to 17%, even some quarter reaching 18%, 19%. So, the growth rate has been quite good, satisfactory and we were able to really use the multiproduct strategy in all the branches. We have 3,225 branches and we have been able to activate many of the branches, most of the branches, I can say, for multiproduct.

With this kind of growth, we have been looking for a strategic partner to raise capital and in this process, we have been talking to many of the interested investors who were also are keen to participate in India's growth story. What is very important for us is the India's growth story and the investor having the comfort of coming for a long-term haul. In this process, we interacted with the MUFG.

As you know, MUFG is one of the top bankers in the world. They are 10th largest in asset size with $2.8 trillion in asset. The proposed partnership with MUFG will be with a 20% stake, in the sense, the professional allotment given to them.

So fresh capital would be coming in with approximately US$4.4 billion. That is the proposal and both the board, MUFG board and SFL board, have approved the proposal and we have already sent the notice for the EGM and that is with you. Some of the things which you would like to highlight here is, we believe with large capital coming into SFL, we will have a longterm growth strategy and we would be able to grow significantly higher than what we have been growing.

We have been growing around 16%-17%. We would like to grow another 3%-4% more, that is anywhere between 18%-20%. It all depends upon the economic activity. Last 2 quarter, the GDP growth in India, if you have witnessed, it is growing around 8% plus, which is a very positive

Page 2 of 14

Shriram Finance Limited December 30, 2025

==> picture [116 x 38] intentionally omitted <==

sign and we believe this is going to be a long-term happening in India, the way things are moving. The GST reforms also have given some kind of a positive consumer consumption push and we believe greater demand will follow. We also believe that growth rate, credit demand in India will grow around two and a half times of the GDP, that is approximately 20%.

We should be able to grow on par with the credit demand and maybe in certain quarters and certain segments, certain geographies, we would be able to grow much faster. There are a few things which we have in plan. We have been all these years financing to small vehicle operators and machinery owners, agricultural households for tractors, mechanization of agricultural activity through mechanization, SMEs.

We have been either to doing a small ticket lending. We believe with our knowledge and experience in this field, we can upgrade to little newer vehicle and bigger ticket. We don't have to really go into unrelated businesses with the addition of new capital.

The additional growth what we can provide by having additional capital, that itself will be sufficient for our growth. From where we are getting this confidence is basically when a large strategic partner comes into, we believe our balance sheet being very strong, the borrowing rates will come down. Additionally, with rating upgrade, further the rates will come down and overall we believe the 100 basis point advantage will get over the next two years on our borrowing cost.

Our liability side will get re-rated on the borrowing and some of this will get passed on to the customers, especially the customers who are moving away from us for better rate to either bank or other peer NBFCs. So retention and attracting few new customers would be sufficient for us to keep up a growth momentum and grow at around 20%.

The immediate impact of the capital infusion will be our gearing increase around 4.3, that is leveraging will come down to 2.6 and we expect that as we keep using capital that will keep increasing. The ROA part of it, because the capital and lower cost, the ROA will expand from current 2.8 to around 3.6 over the period and the ROE which will come down in next year because of the additional capital to around 13.5 will start growing year after, and we would be able to go back to the current ROE by 31, that is around 5 years from now.

So we should be able to have a growth momentum, better ROA, better ROE and we also expect the credit cost to come down even though we don't want to give, we have been always a conservative, we don't want to give a very high positive picture on this, but around 10 to 20 basis point improvement in credit cost is a possibility, because we would be able to retain our top customers, our best paying customers for a longer term.

So these are all the positives of the investment. And I think this is the base -- and of course, the other advantages which I would like to highlight, the MUFG has an investment in Morgan Stanley with 23.7. And apart from that, they have investment into 4 Asian countries, that is Philippines, Vietnam, Thailand and Indonesia and their experience in these countries have been good.

Page 3 of 14

Shriram Finance Limited December 30, 2025

==> picture [116 x 38] intentionally omitted <==

They have a very strong digital play that we should be able to take certain advantage of the platform what they have built in these countries. And since they have the experience of investing in Asian countries, it will be very comfortable management for us. As per the understanding, they will have 2 board seats and we also expect certain advantage in funding support, capital market support, treasury solution.

These are the broad understanding we have. But as we move together, we should be able to work out on a lot of mutually beneficial advantages. These are the broad numbers and I think the rest of the information you already have. We are happy to go in for Q&A. Thank you very much.

Moderator:

Mahrukh Adajania:

Umesh Revankar:

Mahrukh Adajania:

Umesh Revankar:

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. We take the first question from the line of Mahrukh Adajania from Nuvama Wealth Management Limited. Please go ahead.

Hello. Congratulations, sir. Sir, I had a couple of questions. Firstly, what was the ROA indication that you gave? I could not catch that properly.

See, right now, our ROA is around 2.8. We expect it to improve to 3.6.

Okay. Sir, my questions were that just in terms of growth, where do you see the share of new CV settling? What do you think would be an ideal mix for your new CV? And if you could guide to a margin trajectory, say, over the next one year and maybe even longer term, would we see it crossing 9? How does it work?

See, basically, what happens is the interest rate, the borrowing cost reduction will be much steeper and for the entire book. And we will be onboarding few customers for new vehicle. That means maybe around 5% of my customer would be new vehicle customer. Since my borrowing cost comes down by nearly 100 basis point, a few of the customers, if I am able to retain by reducing my lending rate, it will not have any impact on the net interest margin.

In fact, my net interest margin is likely to expand from here. Exact numbers I will not be able to give you immediately. Sanjay will be able to help you out of that. But you can imagine 100 basis point coming down for the entire book over the two years and very few customers I will be able to offer new vehicle lending rate. Even there, since we will be giving to select few, they will not have any impact on the margins or spreads.

Mahrukh Adajania:

Umesh Revankar:

Mahrukh Adajania:

Umesh Revankar:

Sure. But, sir, what will be the ideal proportion? I mean, how much do you want to increase the proportion of new vehicles to?

Yes. See, basically, our new vehicle market share is very low. It's around 3%, including the passenger vehicle among the overall new vehicle sales, which we would like to double it in the next three years.

Got it. And the ROA target, not target, but the indicative ROA is for two to three years, is it?

Yes. It will start improving from the next year and it will have over the four years.

Page 4 of 14

Shriram Finance Limited December 30, 2025

==> picture [116 x 38] intentionally omitted <==

Moderator: Thank you. We take the next question from the line of Piran Engineer from CLSA. Please go ahead.

Piran Engineer: Yes. Hi, team. Congratulations on this landmark deal for the Shriram Group and the Indian financial sector. So my first question is, some of the management changes we did two months ago, was this in lieu of this deal? And should we expect any more changes over the next course of the next few quarters? Umesh Revankar: No, the management changes were the normal management changes. There is nothing surprising here. So as the term came to end of the earlier Managing Director, the new Managing Director and CEO has come, Mr. Parag Sharma. And he will continue for a longer time. And there is nothing in anticipation of this deal we have done.

Piran Engineer: Okay, understood. And so also, like you mentioned that in the vehicle segment, you will go into the higher ticket, lower risk segment. Should we expect something similar in MSME where you get into higher ticket lap right now you're operating in the INR10 lakh, INR12 lakh segment? But that's still a more niche market, the INR50 lakh, INR1 crores segment? Should we expect you all to enter into that also? Umesh Revankar: No, we will not go into large ticket SME lending. We will never get into lab lending. We will do only the SME business lending. We are very clear. However, yes, we will have additional security of property, either commercial property or residential property that will continue. But we will not get into large ticket and will not get into LAP. Piran Engineer: But if I may ask, why will you not do that now that your cost of funds is likely to be competitive with the good players? Umesh Revankar: See, we have been repeatedly saying that we are a conservative company. We do not wish to play for a long term lending. LAP, moment you call it as a LAP, it goes into 12 to 15 years longer lending, which you would like to restrict to five to seven years only, and only for a term loan and for the business purpose and based on the cash flow. Piran Engineer: Understood, understood. And even this vehicle, new vehicle segment that we are talking about doubling market share, that will come primarily from new vehicle loans to existing customers. We will not go into the open market to source new vehicle loans aggressively?

Umesh Revankar: Yes, yes, you are right. Piran Engineer: Got it, got it. And just my last question, could we, now that we're sitting on INR40,000 crores of cash, any potential acquisition, M&A that we could be thinking of? Umesh Revankar: No. So we'll not be looking into any kind of inordinate growth. Moderator: Thank you. We take the next question from the line of Avinash Singh from Emkay Global Financial Services Limited. Please go ahead.

Page 5 of 14

Shriram Finance Limited December 30, 2025

==> picture [116 x 38] intentionally omitted <==

Avinash Singh:

Yes, good morning. Congrats on the deal. First question, again, repeating on that, of course, you have provided some color, but I mean, with the higher capital in terms of accelerating growth, I mean, in terms of product, customer and geography, I mean, on the product side, adjacencies, you explained where you would like to go.

Now, in terms of your geographic footprints, you have been relatively more into the rural, semiurban. I mean, does now your cost of funding becoming very, very competitive? Would you like to kind of venture more aggressively into urban or metros as well as, I mean, going after the prime customers also?

I mean, typically, the NBFCs or banks have been operating. So I mean, do you have certain plans around this customer and geographic adjacencies? And secondly, on MUFG, I mean, of course, the filing and everything says for now they are kind of a public investor. But now given the kind of direction of this investment and its trending importance, is there a plan from their side kind of being turning into the Copper Motors and like that? Thanks.

Umesh Revankar:

See, basically, we would like to remain in our geographies where we are. We do not want to get into metros at all. We would prefer to be in the semi-urban rural market. And as I was telling, that we would prefer to retain my existing customer and definitely I will create more reach in the north, central and east where our footprints are a little less. We would be expanding. We have a rural center there.

We would be converting those into branches. So naturally, my reach in these geographies are going to be better. Even if you see the way each states are growing in India, south seems to be growing much faster and the GDP per person also is much higher and also to some extent west.

But there is a scope in the east and north and central to grow. Especially we believe that central and north are likely to grow much faster and there is enough indication for us that they are catching up with south maybe in the next 5 to 10 years. And that is where we believe the sweet spot and the maximum growth we should be able to get.

Parag Sharma:

On MUFG, there is no discussion whatsoever for any further stake. They will be classified as non-promoter and have 20% stake. There is no discussion whatsoever for any further increase as of now. And this is huge capital which is going to take some time for us to deploy. There is no need for any further capital or discussion for their stake increase.

Avinash Singh:

Thank you.

Moderator: Thank you. We take the next question from the line of Pratik Kothari from Unique PMS. Please go ahead.

Pratik Kothari:

Yes, good morning. So one question, irrespective of this large capital, we had the wherewithal, the products, the customer segments, etcetera, to kind of accelerate growth. But like you mentioned, for the last 3, 4, 5 years, we have been growing at this 15%, 16%, 17%. So is it just this incremental capital which kind of now makes us more aggressive and we want to do 20%?

Page 6 of 14

Shriram Finance Limited December 30, 2025

==> picture [116 x 38] intentionally omitted <==

Because the reverse would have been what we would expect. We are growing at 20% and you need capital and hence you went out and got capital. It seems the reverse where you got capital and hence now you want to grow faster.

Umesh Revankar: See, basically everything falls into your cost of borrowing. And with this new capital, our cost of borrowing will come down and that will help us to get into a certain segment or certain customers. And therefore, the growth rate is higher. So it is not that we can grow at 20% at the current borrowing cost and attract capital. Therefore, we were looking for a partner for making a ground that our total liability cost, borrowing cost comes down with the peers in the market.

Parag Sharma: And also with the economic environment, the current GDP growth is good and possibilities and opportunities are there. We would like to take advantage of that and then grow faster. Pratik Kothari: Correct. And sir, this 100 bps of cost of fund improvement over 2 years, if I just highlight the timeline, what happens very quickly, what happens 2 years out and the assumptions behind the thing?

Parag Sharma: I think 2-3 things. One is the incremental liabilities and replacement of the current debt takes 2 years to 3 years. That is why we said it will happen over a period of time and not immediately. So whatever debt gets replaced, maturity will be around 2, 2.5 to 3 years. So that is why we give this 3 years' timeline.

And for growth, whatever liabilities we raise additionally, that will definitely come cheaper, but that will be around 20% growth only for liabilities also. But replacement of debt, which normally takes a longer period for getting the pricing benefit.

Pratik Kothari: So the thought behind this is two, right? So one is a larger institutional partner backing us and two potential rethinking upgrades. So two of this fall in place and we 100 bps is what we can get?

Parag Sharma: So, I think that is the thing. And in fact, other thing also, because of RBI action rate cuts, the benefit is anyways flowing in…

Pratik Kothari: I thought this 100 was over and above that. So this assumes the RBI rate cuts, which is yet to pass through?

Parag Sharma: Correct. It assumes that also. But yesterday also one rating agency has upgraded us to AAA. So we expect other rating agencies actions also being there. So let us, I think we will wait and watch. But we factor in all the positives and then say 100 bps improvement.

Pratik Kothari: Correct. And sir, last on this $200 million non-compete that the Employed Trust kind of got. If you just explain what is this, the rationale, something on this?

Umesh Revankar: See, basically the promoters, part of the in the SOT, they should not be starting a similar business. Because you would have seen that normally whenever there is any investment, there is a non-compete clause for maybe a year or two. But this gives an, there is an understanding

Page 7 of 14

Shriram Finance Limited December 30, 2025

==> picture [116 x 38] intentionally omitted <==

that we will not start any similar business by the promoter group. That is SOT. That is why this payment is made.

Pratik Kothari: But sir, this is unfair to the other minority, right? It's just this one cohort of investors who get something. I mean, I understand the reason behind it. And usually non-compete is part of things. But to get such a large amount just to one cohort, this seems off as a minority investor.

Umesh Revankar:

No, it is paid directly by the investor.

Parag Sharma: And there is no price which is reduced because of this investment. As per the SEBI determined pricing, whatever was the preferential issue rate is what is paid, which is not discounted at all. So that full money comes into Shriram Finance.

Pratik Kothari: No, fair. But the one of the cohort of investors got a larger, I mean, if you do the per share calculation, what you got a different amount than what the others got, what Shriram Finance got. So, I mean, agreed to what you are saying, but did you, I mean, the promoters did get a different rate?

Umesh Revankar: No, promoters are not selling anything here. It is a fresh capital that is coming in.

Pratik Kothari: Thank you.

Moderator: Thank you. We take the next question from the line of Shubhranshu Mishra from PhillipCapital. Please go ahead.

Shubhranshu Mishra: Hi, thank you for this opportunity and congratulations on this deal. So just the stock exchange notification that was originally put out, there were two other points which you answered earlier, but I'm just reiterating it, that MUFG can second up to three of its personnel as senior management up to 6 months of the completion date.

And there is a non-binding MoU to explore framework to identify beneficial business opportunities, which implies that there could be senior management changes, or they can have their own people come in. Second is that there can be acquisition targets. You answered these two, but if you can just clarify these two points from the stock exchange notification itself? Thanks.

Umesh Revankar: Yes, see basically the understanding is that none of the second is -- would be either KMPs or senior management. They will be number two or number three level only. So none of the KMPs and senior management change is envisaged at this level or discussed.

Shubhranshu Mishra:

Areas of synergy.

Umesh Revankar:

Areas of synergy is basically, see, since they have investment in other Asian countries, we would like to see how their investment have progressed. And depending upon that some sharing of the information will be there. It can be that they will also learn from our experience here in India, and we can also learn from their experience.

Page 8 of 14

Shriram Finance Limited December 30, 2025

==> picture [116 x 38] intentionally omitted <==

It's a mutually agreed. And I believe on the digital platform there will be some advantage, because they have a very robust digital platform in the Asian countries. And even though India is one of the leading in the digital what you call network and digital transactions, we believe that the other Asian countries have done much better in certain areas. We would like to really know from that and if possible, adopt here.

Shubhranshu Mishra: Right. One last question is that they also have a significant stake in DMI Finance, which is into digital lending and consumer durable lending, which could be a complementary business for us as well. In the future, is there a case that we will see the merger of DMI Finance into Shriram Finance?

Umesh Revankar: No, we don't see that opportunity -- the chances because it's a purely Fintech company and we have never -- we did not discuss. In fact, they have invested in DMI through their fund, one of their fund called Ganesha Fund and not directly from the bank as planned, as they're investing here.

Shubhranshu Mishra: And we don't want to explore that complementary business also in the present construct, consumer durable financing, Fintech partnerships, so on and so forth?

Umesh Revankar: Nothing was discussed and I don't see any kind of a chance there. Shubhranshu Mishra: Thank you. Best of luck and Happy New Year. Umesh Revankar: Thank you.

Moderator: Thank you. We take the next question from the line of Abhijit Tibrewal from Motilal Oswal Financial Services Limited. Please go ahead.

Abhijit Tibrewal: Good morning, sir. Congratulations on this transaction. So, just a couple of questions. So, what is the timeline that we're looking for the completion of this transaction and once the transaction is completed, within what timeframe can we expect this equity including the two get deployed?

Umesh Revankar: Basically, the 14th is the EGM date and after that we need to apply for RBI approval, a formal approval from RBI and CCI. We expect it to take two to three months, but it can be faster also. It all depends on how these things move. And we would be happy to get it in this financial year, but at the max it can be April. So, we are happy to receive as early as possible.

Abhijit Tibrewal: So, basically, minimum of two to three months is what you're expecting on this transaction to get completed?

Umesh Revankar: There's something called minimum. It can be as early as possible. We are just giving you outer time it can be possible.

Abhijit Tibrewal: Okay. Got it. So, the other thing is, I mean, yesterday we reported we already have a AAA credit rating approved from CARE and maybe the others will follow it in the coming quarters. After that, I mean, with the AAA credit rating from multiple credit rating agencies, what is the steady

Page 9 of 14

Shriram Finance Limited December 30, 2025

==> picture [116 x 38] intentionally omitted <==

state leverage that we can operate at? I understand it will take a few years to get there, but what is the steady state leverage at which we can operate?

Umesh Revankar: See, as we have an international rating, we have to have a capital adequacy of 20. So, we always feel the sweet spot for us is anywhere between four to five times. Maximum five and four is ideal. And for reaching that four times leverage it may take maybe five to six years, but we are happy in this. I think the sweet spot is four to five and we should or I should say 4.5, should be the exact.

Abhijit Tibrewal: Got it, sir. Sir, then, I mean, a couple of times earlier in the call, we shared that over the next two years, we're expecting 100 basis points impact or benefit on a blended cost of funds. So, if Parag sir can just briefly explain, where is it that the bigger benefit will come from? Will it come from the debt capital market or will it be coming from the bank borrowings and how much of this benefit will be retained versus passed on to the customers to be mortgaged?

Parag Sharma: Yes, I think two, three fronts where the larger benefit will come. I don't think there is much of a differential when it comes to the bank borrowing between AAA and AA. There is definitely a lot of differential between the capital market borrowing what we have and also the retail deposit. Retail deposit is, for us, is around 26%, 27%. So, as and when we reduce rate there and the capital market, which is close to around 23% of our liabilities, both this will have benefit and that should happen over a period, as I mentioned, around two and a half to three years.

Abhijit Tibrewal: Got it. And sir how much of this do you think can be retained versus what could be passed on to the customers so that we gain market share, we can grow at a higher rate?

Umesh Revankar: See, basically, if you would like to retain my existing customers who are growing and becoming larger, how many of them -- I can tell you that around 30% of my customers over the period move out because they grow their business and they want a newer vehicle -- new vehicle or larger ticket. And if you are able to retain that itself is significant. We don't have to really look for a new customer to, you know, grow my business.

Abhijit Tibrewal: Got it. And sir, lastly, we spoke about now maybe targeting a 20% kind of an equilibrium CAGR with this equity infusion. And like you said, even if we end up retaining some of our existing customers who move out, we can very well get there.

Just trying to understand, I mean, we've discussed already a lot in terms of our focus on maybe venturing into newer series, maybe a bigger MSME playbook. But in terms of product segments, which are those product segments which will enough consume most of this growth capital that has come in?

Umesh Revankar: See, vehicle being 70% of my book, automatically, the larger capital will flow into that. All commercial vehicle, construction vehicle, plus your passenger vehicle is put together 70% of my book. And in the two wheeler, we're already number one player in the market. And we'll continue to remain number one there.

Page 10 of 14

Shriram Finance Limited December 30, 2025

==> picture [116 x 38] intentionally omitted <==

I don't really see a big change in the two wheeler, our market position. Probably, we'll be able to grow on the, what you call, bigger bike, that is -- which we were mostly focusing on a transportation kind of a bike. We may get into a little bigger bike, that's all. Otherwise, there may not be a big difference there.

But in the SME, I see a huge opportunity, but we'll be very cautious. As I was explaining you, we will not get into that. We will do only SME cash flow based lending. But definitely, we'll go for a secured lending. At least for some more years, we believe till the SME segment becomes much well understood by us, we will get into secured lending.

Abhijit Tibrewal: Got it. Sir, this is very useful. Thank you very much. And I wish you and your team the very best.

Moderator: Thank you. We take the next question from the line of Viral Shah from IIFL Capital. Please go ahead.

Viral Shah: Yes. Hi. Thank you. First of all, congrats on this landmark investment, sir. So, I have three questions. Third one more of a clarificatory question. So, first of all, you have mentioned also the 100 bucks reduction in cost of funds.

Now, if I tie in this with the lower leverage that we will have post this money coming in, and also the lower credit cost that you guided, do you think you are being too conservative on the ROA numbers that you are guiding for, sir?

Because just mathematically, when I added all these three up, the numbers seem to be much higher the ROA uplift, at least, of course, in the intervening period. I'm not talking of, say, on a steady state basis like-for-like leverage, etcetera., which will still be at least 6, 7 years down the line.

Umesh Revankar: 3.6, I said at the end of 5 years. Interim, yes. When the capital comes in, the ROA will go up significantly. It may go up to 3.8. But it will slowly, as we expand our business, it will come down to 3.6. Whatever I'm trying to say is at the end of 5 years.

Viral Shah:

Okay, got it, sir. Sir, secondly, on the growth front, you mentioned the growth acceleration from 15%-16% to, say, 18%-20%. And this seems to be just incrementally on back of lending for new vehicles and that too for retaining customers. Do you think this is the kind of, just on back of this, we can achieve this growth, even, say, in the next 1 to 2 years?

Umesh Revankar:

Yes, we are quite confident. See, the GDP growth rate gives us that kind of comfort and scope for growth. Now, 8% GDP growth in the last two quarters is very positive for us. And the credit demand, because of the increase, today's headline also you'd have seen that manufacturing is -- in one of the highest in the month of November.

So, I think there is enough demand for us to grow. So, as I was telling you, by just retaining my customer, I'll be able to grow 20. I don't have to really acquire a new market or new customer or do something totally different to achieve my growth.

Page 11 of 14

Shriram Finance Limited December 30, 2025

==> picture [116 x 38] intentionally omitted <==

Viral Shah:

Got it. And sir, lastly, on the leverage, you mentioned the sweet spot of 4.5x. Just wanted to clarify, are you referring to the debt-to-equity or the asset-to-equity?

Umesh Revankar: Debt-to-equity. Debt-to-equity. Viral Shah: Okay. Got it, sir. Thank you and all the best.

Umesh Revankar:

Thank you.

Moderator:

We take the next question from the line of Shriya Shivani from Nomura. Please go ahead.

Shriya Shivani:

Hi. Good morning, everybody, and congratulations on this historic deal. So, I have two questions. My first question is just focusing on your product mix. While you've explained very well that your new customers itself, your existing customers themselves can support growth, but where would the vehicle, non-vehicle mix be for you?

It has been at about, if you include two-wheeler in the vehicle, it has been at about 80-20. Will that, over 5 years, will you keep it at 80-20? Does that shift to 50-50 or any other number? If you can help us understand how the diversification within your book takes place?

And my second question is, on the MUFG, the three set of people who will come in, will they - - is there any clarity on which business segments would they come in to be a part of? One, you mentioned how you want to deliver their digital capability.

So, one can expect something like that can come in there, but is there any other area where you expect these people to, the new set of people to come in and be a part of certain business segments? So, those are my two questions. Thank you.

Umesh Revankar:

Basically, on the overall proportion, I don't see there is any change because, as you rightly said, including two-wheeler and construction equipment and farm equipment, it is 80-20. That is, 15% is SME and another 5% is gold and personal loans. So, overall, that proportion will continue to remain. But maybe, yes, we will be a little more aggressive in the gold financing because we have a reach which we need to take an advantage.

There will be a certain push for gold finance that will increase maybe another 2% more. So, gold finance going up by 2% more can bring down our proportion to 78-22. So, it will be just 2-2. Maybe 5% variation could be there within the segment -- broader segment, not the small segment, that is how I think it will play out over the 5-6 years. The second question is…

Parag Sharma:

The second is?

Umesh Revankar:

See, second is, right now, they have not indicated where they would like to put. But there are many things when the MUFG also has regulatory requirements there in Japan. And therefore, they also have to understand our accounting and some kind of reporting would be there because it is a significantly large investment into India. So, we believe it will be mostly on this account maintenance and maybe reporting and digital.

Page 12 of 14

Shriram Finance Limited December 30, 2025

==> picture [116 x 38] intentionally omitted <==

These are the areas. On the business front, it may take more time because they need to understand the businesses in India and slowly. But one thing we have made it very clear, it will neither be a KMP nor a senior management. It will be someone who will be wanting to learn business in India and understand India's environment and help in more of an information flow and the digital play.

Shriya Shivani: Got it. But there is still a possibility that some of them could come into some business segment as secondary also, right? Not just in these three, account maintenance and reporting that you are talking, that is still a possibility. There is no restriction on that, right? Umesh Revankar: See, I can't put any restriction. But yes, definitely if they want to learn something in India and use that in Indonesia, definitely welcome, no. Shriya Shivani: Yes. Umesh Revankar: That's how any investment has to be for learning new things. Because Indonesia also has a very active NBFC sector and there are a large number of financial institutions there beyond the bank. Of course, they have invested in the bank, but the bank also has a NBFC, sorry subsidiary. That's how we understand. Shriya Shivani: Got it, sir. This is very useful. Thank you and all the best. Moderator: Thank you. We take the next question from the line of Umang Shah from Kotak Mutual Fund. Please go ahead. Umang Shah: Hi, good morning and thanks for taking my question. Congratulations on the deal and the muchanticipated rating update. Sir, just one question and a couple of clarifications. First is on the noncompete, if you could just help us understand this better. So, what is the duration of the noncompete? And the non-compete, does it just apply on SOT or even the members or beneficiaries of the SOT, which could be current or past senior management within the group? Umesh Revankar: No, it is basically for SOT, that is a promoter group. And there is nothing like a timeline. So, we have decided that we will not have another business started by the SOT, that's all. Matter is over. One time. Umang Shah: Okay. And any of the members or beneficiaries are sort of then technically become part of this agreement, right? Umesh Revankar: They are all part of the SOT. Anyone who is part of the SOT, they will not be able to start any business. Matter simple. Umang Shah: Okay, understood. Sir, the other two clarifications. One is once all the regulatory approvals are in place, the $4 odd billion comes, the money comes into the company in one shot or are there any milestone linked investments?

Umesh Revankar:

No, it is one shot.

Page 13 of 14

Shriram Finance Limited December 30, 2025

==> picture [116 x 38] intentionally omitted <==

Umang Shah: Okay. Perfect. And so, the last one is, when looking at your commentary, it appears that your ROE target for the next five years appears a bit conservative. Even if I build in the cost of fund advantage and maybe a little bit of credit cost benefit, ideally, we should hit our ROE targets much sooner compared to what you are guiding for. I mean, it's fair to be conservative, but is my understanding correct or am I missing something here? Umesh Revankar: See, we are a conservative company. We'll be thinking conservatively only. We don't have any other way to think. So, you should guide us on other possibilities. Umang Shah: All right. Okay. No problem, sir. I got it. Thank you so much and wish you all the best. Umesh Revankar: Thank you. Moderator: Thank you. Ladies and gentlemen, we take that as the last question and conclude the questionand-answer session. I now hand the conference over to Mr. Umesh Ravankar for his closing comments. Umesh Revankar: Thank you, everyone, to come online today. Now, these are all holidays and s Many of you, it is the holiday season and I wish you New Year wishes. Plus, one thing I would like to remind you, we have sent notices and I request everyone to positively participate in the vote for us - vote for the resolution and participate. If you have anything to discuss, feel free to talk to Sanjay. We are open to discuss one-on-one at any point of time on any issues. Thank you very much. I wish you all the best for the New Year 2026. Moderator: Thank you. On behalf of Shriram Finance Limited, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.

Page 14 of 14