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Informist, Tuesday, Jul. 28, 2026

 

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--Cholamandalam Invest Apr-Jun net profit INR 16.54 bln 
--Analysts saw Cholamandalam Invest Apr-Jun net profit at INR 15.52 bln 
--Cholamandalam Invest Apr-Jun revenue INR 88.33 bln 
--Cholamandalam Invest Apr-Jun PAT INR 16.54 bln vs INR 11.36 bln yr ago 
--Cholamandalam Invest Apr-Jun revenue INR 88.33 bln vs INR 72.45 bln yr ago 
--Cholamandalam Investment to raise INR 550 bln via NCDs private placement 
 

 

By Meera Nair

 

MUMBAI – A sharp rise in interest income which significantly outpaced the rise in interest expenses boosted the June quarter bottom line of Cholamandalam Investment and Finance Co. Ltd. The non-banking financier posted its highest year-on-year net profit growth in 16 quarters and beat Street estimates.

 

The Chennai-based lender reported a net profit of INR 16.54 billion, up nearly 46% on year, while growth was marginal from the previous quarter. Revenue from operations rose nearly 22% on year to INR 88.33 billion from INR 72.45 billion. Total income increased nearly 22% on year to INR 89.33 billion, supporting the rise in profit after tax for the June quarter. 

 

The company detailed its June quarter earnings during the market hours. Shares of the company fell nearly 3% to INR 1,734.30 on the National Stock Exchange at 1500 IST Tuesday.  

 

The financier's interest income jumped nearly 21% on year and nearly 6% sequentially to INR 80.40 billion during the quarter under review. The company's other income rose nearly 16% on year to INR 996 million for the June quarter. Sequentially, other income fell nearly 32%.

 

On the expenditure side, the company's finance costs grew nearly 16% on year and 7% on quarter to INR 40.03 billion, while employee benefits expense rose over 23% on year and more than 5% sequentially to INR 11.40 billion. These two--finance costs and employee benefit expense--were major contributors to the company's total expenses, which rose nearly 16% on year and 5% on quarter to INR 67.12 billion. The company's other expenses rose over 24% on year to INR 5.74 billion, but were down almost 12% sequentially.

 

Its asset quality deteriorated in the quarter under review and the gross non-performing assets ratio rose to 4.50% at the end of June from 4.36% at the end of March and from 4.29% a year ago. Its net non-performing assets ratio fell to 2.95% at the end of June from 2.87% a quarter ago and 2.86% a year ago. The provision coverage ratio was 35.49% at the end of June, up from 35.36% at the end of March and from 34.41% a year ago.

 

Its aggregate disbursements during the June quarter were INR 296.12 billion with the assets under management rising 23% on year to INR 2.54 trillion on Jun. 30. The core vehicle finance business remained the largest segment for the diversified lender, with disbursements at INR 165.03 billion in the June quarter. The total assets under management of this segment grew 19% on year to INR 1.24 trillion at the end of June.

 

The company disbursed INR 47.80 billion in loans against property in the June quarter, up 23% on year, and the assets under management of this business rose 23% on year to INR 541.30 billion at the end of June. Home loan disbursements were INR 17.97 billion, up 22% on year, and the assets under management of this segment were INR 236.44 billion at the end of June. The company disbursed INR 7.54 billion of gold loans during the quarter and the assets under management of this segment were INR 21.43 billion at June-end. The non-banking financial company has 171 branches.

 

The company's board approved raising INR 550 billion through the issuance of non-convertible debentures in one or more tranches on a private placement basis.  End

 

Edited by Pankaj Aher

 

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