Cholamandalam Investment and Finance Company Limited – Investor Presentation Summary

Key Operational Highlights

  • Business Assets Under Management (AUM) reached ₹2,33,586 crore, a growth of 22% Year-over-Year (YoY).
  • The company operates 1,820 branches across 26 states & 7 Union territories, with 87% of locations in Tier-III to Tier-VI towns.
  • Total employee count stands at 75,882, serving 51,57,904 customers.

Key drivers of operational performance: Geographical expansion into semi-urban and rural markets, diversified product offerings across Auto, MSME, and Consumer ecosystems, and a focus on analytics-driven customer outreach.

Segment-wise Performance

  • Auto Ecosystem (Vehicle Finance - VF): AUM of ₹1,24,132 crore, growth of 19% YoY. PBT of ₹945 crore, growth of 50% YoY. Loan losses improved to 2.0% from 2.2% in Q1 FY26.
  • MSME Ecosystem (LAP, SBPL, SME): AUM of ₹67,782 crore, growth of 26% YoY. PBT of ₹692 crore, growth of 44% YoY. Comprises Loan Against Property (LAP), Secured Business & Personal Loan (SBPL), and Small and Medium Enterprises (SME) lending.
  • Consumer Ecosystem (HL, CSEL, Gold): AUM of ₹41,671 crore, growth of 24% YoY. PBT of ₹395 crore, growth of 78% YoY. Includes Home Loans (HL), Consumer & Small Enterprise Loan (CSEL), and Gold loans. Loan losses improved to 2.2% from 3.2% in Q1 FY26.

Explanation of significant changes in segment performance: Growth in the MSME and Consumer ecosystems was driven by strategic expansion into smaller towns and tailored product offerings. The Auto ecosystem growth mirrored industry trends in Commercial Vehicles and Passenger Vehicles.

Financial Highlights

Revenue: Total Income of ₹17,071 crore (Net Income of ₹10,496 crore after finance charges).

EBITDA: Not explicitly stated in the presentation.

PAT: Profit After Tax of ₹5,220 crore, a growth of 23% YoY.

EPS: Earnings Per Share (Basic) stood at ₹61.8 for FY26.

Margins: Net Income to Assets margin improved to 8.0%. Net Interest Margin (NIM) improved to 8.2% from 7.8% in Q1 FY26. Cost to Net Income ratio was 38.5%.

YoY/QoQ comparison: Profit Before Tax (PBT) grew 45% YoY to ₹2,220 crore. Return on Assets (PBT) was 3.3%. Return on Equity was 21.2%.

Drivers of financial performance: Higher revenue growth, improved net interest margins, and operational efficiencies.

Comparison to market estimates: Not provided.

Key Risks: Disclosed risks include raw material price hikes impacting borrower cash flows, regulatory risks, and potential asset quality pressures from external disruptions.

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not explicitly broken down by value. The operational presence is entirely domestic, with 1,820 branches across India.

Regional Breakdown: Not provided in a quantified revenue split.

Balance Sheet Snapshot (As of 30 June 2026, in ₹ crore)

Net Debt/Equity: Not directly stated. Shareholder's fund was ₹32,078 crore against Borrowings of ₹2,20,247 crore.

Reserves: Part of Shareholder's fund of ₹32,078 crore.

Current Assets/Liabilities: Financial Assets were ₹2,52,241 crore. Financial Liabilities were ₹2,22,929 crore.

Working Capital/Leverage Metrics: Not specified for working capital. Capital Adequacy Ratio (CAR) was 19.81% (Tier I at 14.81%).

Financial Health Insights: Strong liquidity position with ₹22,765 crore in cash balance (including HQLA of ₹7,614.93 crore). Undrawn sanctioned lines contribute to a total liquidity position of ₹23,984 crore.

Capex & Cash Flow Health

Capital Expenditure: Not explicitly stated for the quarter.

Free Cash Flow: Not provided.

Operating Cash Flow: Not provided.

Net Debt Movement: Not provided for the quarter.

Investment Rationale: Focus on technology upgrades, analytics-driven collections, and capacity expansion in lending operations.

Strategic & R&D Initiatives

Investments in Innovation: Significant investment in Information Technology, including AI-driven loan origination, GenAI for collections and credit assessment, a super-app (Chola One), and robust cyber security measures.

Expected impact on growth: AI and digital initiatives are aimed at enhancing customer experience, automating processes, improving underwriting, and strengthening collections.

Strategic Rationale: Expanding into high-growth semi-urban and rural markets, reducing operational costs through digitization, and building a high-quality asset portfolio.

Industry Trends & Business Environment

Macro/Industry Trends: The NBFC-Retail sector is expected to grow at 16-18% in FY2027. The LAP segment is expected to grow at 19-21%. Credit costs in the sector are expected to moderate to 2.0-2.2% in FY2027. The Auto industry saw strong growth in Q1 FY27 (HCV: 13%, LCV: 18%, SCV: 31%, Passenger Vehicles: 26%, Two-wheelers: 20%).

Impact on Company: The company aims to mirror industry growth trends by focusing on customer cash flow fundamentals and productive asset financing, supported by underlying economic activity.

Management Commentary & Growth Outlook

Strategic Outlook: The strategy remains centred on calibrated portfolio expansion, prudent risk framework, robust credit assessment, and enhancing operational efficiency.

FY Guidance: Not explicitly provided in the presentation.

Market Share Targets: Not explicitly provided.

Risks and Opportunities: Management highlighted opportunities in housing finance demand and the used vehicle market. Risks include inflationary pressures impacting borrower cash flows and potential asset quality pressures.