Cholamandalam Financial Holdings (CHOLAHLDNG) Q1 25/26 earnings summary

Executive summary

• Consolidated Q1 FY26 revenue rose 22% YoY to ₹9,383 crore, with PAT up 9% to ₹1,260 crore and EPS at ₹30.81, reflecting strong growth across lending and insurance segments.

• Gross written premium (GWP) for Q1 FY26 reached INR 1,997 crore, up from INR 1,945 crore year-over-year.

• Standalone and consolidated unaudited financial results for the quarter ended June 30, 2025, were reviewed and approved by the Board and auditors, with no material misstatements identified.

• The group includes subsidiaries, joint ventures, and associates, with significant contributions from financing and insurance segments.

Financial highlights

• Q1 profit reported at INR 145 crore for general insurance; consolidated PAT at ₹1,259.54 crore; return on equity (not annualized) at 3.45%.

• Investment portfolio corpus exceeded INR 18,140 crore, with mark-to-market gains of over INR 390 crore.

• Solvency ratio for insurance stood at 2.17x as of June 30.

• Vehicle Finance disbursements grew 7% YoY to ₹13,647 crore; AUM up 18% YoY; PBT up 1% YoY to ₹628 crore.

• Loan Against Property disbursements up 21% YoY to ₹4,705 crore; AUM up 37% YoY; PBT up 39% YoY to ₹405 crore.

Outlook and guidance

• Management aims to offset a projected INR 500 crore annualized drop in crop insurance premium by seeking alternative growth avenues.

• Full-year GWP target is to match or exceed last year's INR 8,300 crore, despite the crop segment decline.

• Vehicle Finance expects HCV rebound in H2 FY26, LCV growth driven by freight demand, and used vehicle market to remain strong.

• General Insurance sector remains underpenetrated, with long-term growth potential from product innovation and rural expansion.