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Informist, Friday, Nov. 7, 2025

--Cholamandalam Invest: Expect disbursement growth to improve Q3 
--CONTEXT: Cholamandalam Invest mgmt speaks at analyst call post Q2 results 

By Rati Chaphekar and Krity Ambey

MUMBAI/NEW DELHI – After registering stagnation in disbursements growth in the September quarter, Cholamandalam Investment and Finance Co. Ltd. expects the growth to improve in the December quarter, the company's management said Friday, without giving any estimate. The month of October was already strong in terms of disbursements, the management added.

The non-banking finance company's disbursements in the September quarter, at INR 244.42 billion, recorded growth of only half a percentage point from INR 243.14 billion in the corresponding quarter a year ago. According to the management, the disbursements were slow because some registrations got pushed to October due to festive season holidays. Disbursements in the loan against property business were up 8% on year at INR 46.30 billion. Meanwhile, disbursements for home loans fell 6.9% on year to INR 16.97 billion, according to the financier's financial results for Jul-Sept released Thursday.

Also, capacity utilisation was sluggish due to monsoon rains, hence there was lacklustre demand for commercial vehicles, which in turn affected disbursement growth, the management said during a call with analysts after the September quarter earnings. In the September quarter, vehicle finance disbursements, which is Cholamandalam Investment's largest segment of the lending portfolio, grew 10% on year to INR 135.39 billion.   

The company expects capacity utilisation to improve further in December, which is likely to bolster demand for heavy commercial vehicles and equipment, the management said. The financier also expects strong demand on account of the goods and services tax reforms rolled out by the government on Sept. 22, the management said.

The non-banking finance company reported a net profit of INR 11.55 billion for the September quarter, up 1.7% sequentially and 20% on year. Shares of Cholamandalam Investment opened 2% lower Friday at INR 1,630.00, but recovered slightly to INR 1,681.70 at 1128 IST, on the National Stock Exchange, up nearly 1%.  End

Edited by Tanima Banerjee

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