• The document contains the transcript of an earnings conference call conducted on July 28, 2026, to discuss the unaudited financial results for the quarter ended June 30, 2026 (Q1 FY27).
  • The call was hosted by Kotak Securities Limited with moderator Nischint Chawathe. Management participants included:
  • Mr. Vellayan Subbiah – Executive Chairman
  • Mr. Ravindra Kundu – Managing Director and Chief Executive Officer
  • Mr. Arul Selvan – Chief Financial Officer
  • The company reported strong Q1 FY27 performance with aggregate disbursements of INR29,612 crores, up 22% year-on-year, resulting in AUM growth of 23% year-on-year to INR254,392 crores.
  • Business segment performance:
  • Vehicle finance disbursements increased 21% YoY with AUM growing 19% to INR124,132 crores
  • MSME portfolio disbursements grew 6% YoY with AUM increasing 26% YoY
  • LAP AUM grew 23% YoY to INR54,130 crores
  • SME AUM grew 39% to INR9,923 crores
  • SBPL AUM grew 40% to INR3,730 crores
  • Consumer segment disbursements increased 52% YoY with AUM growing 24% to INR41,671 crores
  • Home loans AUM increased 22% YoY to INR23,644 crores
  • CSEL AUM grew 12% to INR15,884 crores
  • Gold loans AUM reached INR2,143 crores
  • Financial metrics:
  • NIMs improved by 42 bps year-on-year supported by lower funding costs
  • Credit costs declined by 24 bps year-on-year to 1.5%
  • ROA increased to 3.7% from 3.1% a year earlier
  • ROE stood at 21.2%
  • Capital and liquidity position:
  • Liquid assets of INR23,984 crores including undrawn sanctioned lines
  • Capital adequacy ratio stood at 19.81% with Tier 1 capital at 14.81%
  • Of INR2,000 crores CCD issuance, INR1,370 crores converted in FY26, INR200 crores in July 2026, with remaining INR430 crores expected to convert in October 2026
  • The company changed its disbursement recognition methodology for certain products (HL, LAP, SBPL, used vehicles) to recognize disbursement only after cheque clearance in bank accounts rather than at cheque handover, affecting quarter-on-quarter comparisons but not year-on-year growth trends.
  • Management discussed asset quality trends, noting that Stage 3 increases from Q4 to Q1 were lower than previous year (25 bps vs 45 bps last year) and expressed confidence in maintaining credit cost guidance.
  • Outlook commentary addressed potential impacts of monsoon (92% prediction vs 96% normal), geopolitical factors, and expectations for continued growth across all business segments.

Additional Notes Section

  • The transcript was submitted to exchanges on August 4, 2026, following the earlier submission of the audio recording on July 28, 2026.
  • The transcript has been uploaded on the company's website at https://www.cholamandalam.com/investors/call-transcript
  • The document contains detailed financial data and operational metrics as disclosed during the earnings call.