Company Overview

Cholamandalam Financial Holdings Limited (BSE: 504973, NSE: CHOLAHLDNG) reported strong financial performance for FY 2025-26, demonstrating growth across both standalone and consolidated operations while maintaining regulatory compliance as a Core Investment Company registered with RBI.

Financial Performance

Consolidated Results (FY 2025-26)

  • Net Profit: ₹2,441.29 crore, up 12.3% YoY from ₹2,173.66 crore
  • Revenue from Operations: ₹39,072.72 crore, up 17.9% YoY from ₹33,125.33 crore
  • EPS: ₹130.01 (basic and diluted), up from ₹115.76 in FY25
  • Interest Income: ₹29,616.16 crore, up 19.2% driven by term loans and debt securities
  • Premium Income (net): ₹6,567.86 crore, up 13.5% with gross written premium of ₹9,047.61 crore
  • Impairment on Financial Instruments: ₹3,542.20 crore, including ₹200 crore management overlay for geopolitical risks

Standalone Results (FY 2025-26)

  • Net Profit: ₹70.41 crore, up 9.3% YoY from ₹64.40 crore
  • Total Income: ₹89.79 crore, with dividend income of ₹74.88 crore from subsidiaries
  • EPS: ₹3.75
  • Total Assets: ₹1,404.21 crore
  • Investments: ₹1,293.46 crore primarily in subsidiaries

Dividend Declaration

  • Final Dividend: Recommended ₹1.30 per equity share (130% on face value of ₹1)
  • Dividend Amount: ₹24.41 crore subject to shareholder approval
  • Record Date: August 7, 2026
  • Payment Date: On or before September 12, 2026

77th Annual General Meeting

  • Date: August 14, 2026 at 2:30 PM IST
  • Mode: Video Conference through NSDL platform
  • E-voting Period: August 11-13, 2026
  • Key Agenda Items:
  • Adoption of standalone and consolidated financial statements
  • Declaration of final dividend
  • Re-appointment of Vellayan Subbiah as director
  • Appointment of Shyam Shankar as Manager for five years with monthly salary of ₹6.98 lakh

Subsidiary Performance

Cholamandalam Investment and Finance Company Limited (43.8% holding)

  • AUM: ₹2,42,630 crore (21% growth)
  • Disbursements: ₹1,11,642 crore (11% growth)
  • PAT: ₹5,220 crore (23% growth)

Cholamandalam MS General Insurance Company Limited (60% holding)

  • Gross Written Premium: ₹9,110 crore
  • PBT: ₹342 crore
  • Solvency Ratio: 1.96 times (regulatory minimum: 1.50 times)

Cholamandalam MS Risk Services Limited (49.5% holding)

  • Income: ₹98.78 crore (18.7% growth)
  • PBT: ₹10.32 crore (8.3% growth)
  • Recommended Dividend: 50% (₹5 per share)

Regulatory Compliance & Governance

  • Registered as Core Investment Company with RBI under Section 45-IA of RBI Act, 1934
  • Auditors (R.G.N. Price & Co.) issued unmodified audit opinion confirming adequate internal financial controls
  • Board composition includes 6 directors with 3 independent directors
  • No fraud reported during the year and no whistleblower complaints received
  • Maintained leverage ratio of 0.0001 (regulatory cap: 2.5) and capital ratio of 2466.10% (minimum: 30%)

Tax Matters

  • Disputed Tax Liabilities: ₹1.71 crore across income tax and GST matters
  • Income Tax disputes of ₹1.36 crore for AY 2016-17 and 2017-18 pending with Commissioner of Income Tax (Appeals)
  • GST dispute of ₹0.33 crore for FY 2021-22 pending with Deputy Commissioner of State Tax (Appeals)

Shareholding Pattern

  • Promoter & Promoter Group: 46.38% as of March 31, 2026
  • Mutual Funds & UTI: 23.62%
  • Foreign Institutional Investors: 13.68%
  • Resident Individuals: 9.75%
  • Ambadi Investments Limited is largest shareholder with 37.69%

Risk Management

The Group maintains comprehensive risk management frameworks covering credit risk (ECL methodology), market risk (interest rate and foreign currency), insurance risk, and liquidity risk with ALM monitoring and contingency planning.

Subsequent Events

No material events after the reporting date require disclosure in the financial statements. The company continues to operate in compliance with all regulatory requirements under Companies Act, SEBI Listing Regulations, and RBI guidelines.