More Stories

Informist, Thursday, Apr. 30, 2026

 

Please click here to read all liners published on this story

--Cholamandalam Invest Jan-Mar net profit INR 16.41 bln
--Analysts saw Cholamandalam Invest Jan-Mar net profit at INR 15.03 bln 
--Cholamandalam Invest Jan-Mar revenue INR 83.92 bln 
--Cholamandalam Invest Jan-Mar PAT INR 16.41 bln vs INR 12.67 bln yr ago
--Cholamandalam Invest Jan-Mar revenue INR 83.92 bln vs INR 70.25 bln yr ago 
--Cholamandalam Invest to pay INR 0.70 per share final dividend
--Cholamandalam Invest FY26 PAT INR 52.20 bln vs INR 42.59 bln yr ago
--Cholamandalam Invest FY26 revenue INR 309.82 bln vs INR 257.46 bln yr ago
--Cholamandalam Invest gross NPA ratio 4.36% on Mar 31 vs 4.63% qtr ago
--Cholamandalam Invest net NPA ratio 2.87% on Mar 31 vs 3.13% on qtr ago 
--Cholamandalam Invest provision coverage ratio 35.36% on Mar 31 
--Cholamandalam Invest capital adequacy ratio 19.21% on Mar 31 
--Cholamandalam Invest AUM INR 2.43 tln on Mar 31, up 21% on year 
--Cholamandalam Invest disbursements INR 329.13 bln on Mar 31, up 25% on year 
--Cholamandalam Invest Q4 vehicle loan disbursements INR 181.32 bln 
--Cholamandalam Invest Q4 loan against property disbursements INR 58.38 bln 
--Cholamandalam Invest Q4 home loan disbursements INR 18.95 bln
--Cholamandalam Invest: Made INR 2 bln mgmt overlay Q4 on geopolitical risks

 

By Aaryan Khanna

 

NEW DELHI – Cholamandalam Investment and Finance Co. Ltd.'s net profit for the March quarter grew at its quickest year-on-year pace in seven quarters to beat analysts' estimate. The lender's bottom line beat the Street view even after carving out additional provisions of INR 2 billion in the reporting quarter as a management overlay to deal with geopolitical risks to its loan portfolio.

 

The Chennai-based non-banking finance company posted a profit after tax of INR 16.41 billion in Jan-Mar, up nearly 30% on year and over 27% sequentially. The net profit comfortably beat the average of estimates from 11 brokerages of INR 15.03 billion. The lender's shares reversed their fall and rose as much as 2.5?ter the result to INR 1,592.20 on the National Stock Exchange. It ended 0.6% higher than the previous close at INR 1,562.90.

 

The financier's net interest income--its interest income net of finance costs calculated by Informist--grew over 26% on year to INR 38.55 billion, narrowly missing the average of analysts' estimates of INR 38.98 billion. Overall, total income grew quicker than total expenses on a higher base, boosting the net profit. The financier's total income was up 20% on year to INR 85.39 billion, but up only 7% from the previous quarter. In addition to the sharp rise in interest income leading to top-line growth, income from fees and commissions also surged over 38% on year to INR 6.30 billion.

 

The net impairment of financial instruments, an expense head, rose 35.4% on year to INR 8.46 billion in the reporting quarter. However, INR 2 billion of these impairments were due to the overlay on its portfolio due to geopolitical risks, Cholamandalam Investment said in the notes to its accounts. Netting this out, impairments grew only 3% on year and were down 71% on quarter at INR 6.46 billion in the March quarter. Bad loan ratios in Indian finance companies may rise if the war in West Asia is prolonged as borrowers' ability to repay loans will weaken, S&P Global Ratings said in a report earlier Thursday.

 

The growth in other expenses also remained high, similar to the last few quarters, as the lender has been building up new verticals. Other expenses rose on year by nearly half to INR 6.52 billion and were up nearly 20% sequentially. Employee benefits costs were flat sequentially and up over 17% on year at INR 10.83 billion. Overall, the growth in total expenses was only 18.2% on year at INR 64.01 billion.

 

The asset quality improved in the March quarter but was worse than it was a year ago. The gross non-performing asset ratio was 4.36% as on Mar. 31 from 4.63% at the end of December and 3.97% a year ago, calculated in line with Reserve Bank of India norms. Cholamandalam Investment's net non-performing asset ratio fell to 2.87% at the end of March from 3.13% a quarter ago and 2.63% last year. As per the expected credit loss norms that non-banking finance companies use for accounting, the gross stage 3 asset ratio fell to 3.05% from 3.36% a quarter ago but rose from 2.81% a year ago. Similarly, the net stage 3 asset ratio was 1.63% at March-end, down from 1.94% as of Dec. 31 but up from 1.56% on Mar. 31, 2025.

 

For the financial year ended March, the lender reported a net profit of INR 52.20 billion on year, up 22.6% on year. Total income grew 20.7% on year to INR 314.45 billion. In addition to the results, the board approved a final dividend on INR 0.70 per share.

 

Meanwhile, total assets under management grew 21% on year to INR 2.43 trillion as on Mar. 31, in line with the management's guidance of 20-22% growth in the porfolio. However, the pace of growth was slower than the 30% recorded in FY25. Disbursements in the March quarter reached INR 329.13 billion, up 25% on year, though total disbursement growth for the full financial year was only 11% at INR 1.12 trillion.

 

The core vehicle finance business remained the largest segment for the diversified lender, with disbursements up nearly 26% on year at INR 181.32 billion in the March quarter. The total assets under management in the segment grew 18% on year to INR 1.20 trillion as on Mar. 31.

 

Disbursals for loans against property rose only 5.4% on year to INR 58.38 billion in the March quarter. At March-end, the portfolio was up 26% on year at INR 522.95 billion. Home loan disbursals shrank over 4% on year to INR 18.95 billion, though the home loan assets under management grew 23% on year to INR 226.88 billion.

 

Unlike some analyst estimates, the consumer and small enterprise loan disbursements grew sharply to INR 32.37 billion in the reporting quarter, up nearly 40% on year. However, the total loan book in the newer segment of the portfolio was up only 4% at INR 151.13 billion. The assets under management under small and medium enterprises surged 41% on year to INR 93.38 billion as on Mar. 31 and disbursals in the March quarter were up over 26% at INR 21.87 billion.

 

Cholamandalam Investment disbursed INR 4.95 billion of secured business and personal loans, up nearly 23% on a low base. The assets under management in the secured portfolio were up 46% on year at INR 35.37 billion. The gold loan business, launched last year, saw total disbursals worth INR 11.30 billion in the reporting quarter and INR 24.69 billion in FY26. The company added just one dedicated gold loan branch in the March quarter, taking the total to 119.  End

 

Edited by Rajeev Pai

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.