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Cholamandalam Investment & Finance Company Ltd

| Standalone Audited Financial Results for the Quarter and Year Ended March 31, 2026

Report Source

⬤30th Apr 26

Summary : Cholamandalam Investment and Finance Company Limited reported strong financial performance with significant AUM and PAT growth, maintaining healthy asset quality and capital adequacy.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Finance costs: ₹3,749.42 Cr (Q4 Standalone), ₹14,374.20 Cr (FY Standalone)
  2. Impairment of financial instruments (Net): ₹846.42 Cr (Q4 Standalone), ₹3,535.83 Cr (FY Standalone)
  3. Employee benefits expense: ₹1,082.64 Cr (Q4 Standalone), ₹4,152.80 Cr (FY Standalone)
  4. Other expenses: ₹651.69 Cr (Q4 Standalone), ₹2,140.03 Cr (FY Standalone)
  5. Stage 3 levels at 3.05% as of March 26, 2026.
  6. Gross NPA at 4.36% and Net NPA at 2.87% as of March 26, 2026.
  7. Interest Income: ₹7,604.56 Cr (Q4 Standalone), ₹28,372.63 Cr (FY Standalone)
  8. Fee & Commission Income: ₹629.67 Cr (Q4 Standalone), ₹2,053.48 Cr (FY Standalone)
  9. Other Income: ₹146.27 Cr (Q4 Standalone), ₹463.10 Cr (FY Standalone)
  10. Segment-wise: Vehicle Finance, Loan against property, Home Loans, Others.
  11. Net Cash used in Operating Activities (Standalone): ₹-29,920.22 Cr (FY 2025-26).
  12. Net Cash used in Investing Activities (Standalone): ₹-2,542.80 Cr (FY 2025-26).
  13. Net Cash generated from Financing Activities (Standalone): ₹35,497.23 Cr (FY 2025-26).
  14. Net Increase in Cash and Cash Equivalents (Standalone): ₹3,034.21 Cr (FY 2025-26).
  15. Total Assets (Standalone): ₹2,45,069.85 Cr as of March 31, 2026.
  16. Total Equity (Standalone): ₹30,404.02 Cr as of March 31, 2026.
  17. Total Assets (Consolidated): ₹2,45,448.23 Cr as of March 31, 2026.
  18. Total Equity (Consolidated): ₹30,458.40 Cr as of March 31, 2026.
  19. Both standalone and consolidated financial results are presented.

Corporate Overview

  1. Primarily India-focused operations.
  2. Potential adverse impact of geopolitical risks on loan portfolio.
  3. Monitoring finalization of New Labour Codes and their accounting impact.
  4. Compliance with SEBI Listing Regulations and RBI guidelines.
  5. Non-banking financial company (NBFC) providing various loans.
  6. Factual and compliant, reporting financial results and regulatory adherence.
  7. Individuals and businesses seeking vehicle, home, property, SME, consumer, personal, and gold loans.
  8. Vehicle Finance
  9. Loan against property
  10. Home Loans
  11. Small and Medium Enterprises Loan (SME)
  12. Consumer and Small Enterprise Loans (CSEL)
  13. Secured Business and Personal Loan (SBPL)
  14. Gold Loans
  15. Others
  16. Operating through 119 dedicated Gold Loan branches.
  17. Growing disbursements across all loan segments.

Risk Factors

  1. Geopolitical risks impact loan portfolio.
  2. Asset quality deterioration remains a concern.
  3. Regulatory changes could affect operations.
  4. Increased competition in lending market.

Key Drivers

  1. AUM grew 21% year-on-year.
  2. PAT increased 30% for the quarter.
  3. Capital adequacy ratio remains strong.
  4. Diversified loan portfolio shows growth.

Auditor’s Report

  1. Unmodified opinion on standalone financial results.
  2. Unmodified opinion on consolidated financial results.

Board Commentary

  1. Final dividend of ₹0.70 per share (35%) recommended for FY 2025-26.
  2. Interim dividend of ₹1.30 per share (65%) already declared.
  3. Impairment allowance for geopolitical risks on loan portfolio.
  4. Compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
  5. Compliance with RBI guidelines and Companies Act, 2013.
  6. NCD proceeds fully utilized as disclosed.
  7. Compulsorily Convertible Debentures (CCDs) converted to equity shares.

Corporate Governance

  1. Auditors confirm compliance with Code of Ethics.
  2. Audit Committee reviewed and approved financial results.

Management Discussion & Analysis

Operational Focus Areas

  1. Maintaining strong liquidity position.
  2. Managing asset quality, including Stage 3 levels and NPAs.
  3. Ensuring healthy capital adequacy ratio.

Performance Drivers

  1. Total AUM grew 21% YoY to ₹2,42,630 Cr.
  2. Net Income increased 27% for the quarter and 26% for the year.
  3. Profit After Tax (PAT) rose 30% for the quarter and 23% for the year.
  4. Strong growth in disbursements across all loan categories.

Risk Control Measures

  1. Impairment allowance for geopolitical risks (₹200 Cr).
  2. Maintaining strong liquidity with ₹20,692 Cr cash balance.
  3. Adequate provision coverage ratio for asset quality.

Critical Risks

  1. Geopolitical risks impacting loan portfolio.
  2. Potential deterioration in asset quality (Stage 3, NPA levels).
  3. Regulatory changes from New Labour Codes.
Cholamandalam Investment & Finance Company Ltd (CHOLAFIN) Quarterly Report Analysis & Insights | Dhanarthi