Cholamandalam Financial Holdings (CHOLAHLDNG) Q3 24/25 earnings summary

Executive summary

• Consolidated revenue for Q3 FY25 was ₹8,593 Cr, up 26% year-over-year; YTD Dec-25 revenue reached ₹24,450 Cr, up 29% year-over-year.

• Profit after tax for Q3 FY25 was ₹1,093 Cr, a 6% increase year-over-year; YTD Dec-25 PAT was ₹3,378 Cr, up 25% year-over-year.

• Gross direct premium income (GDPI) for Q3 FY25 was INR 2,003 crores, up 8% year-over-year, outpacing the multi-line insurers' growth of 7.2%.

• For the nine months ended December 2024, GDPI reached INR 6,095 crores, growing 10.3% versus industry growth of 6.8%.

• Motor segment market share increased to 5.5%, with a higher proportion of car insurance in the portfolio.

Financial highlights

• Consolidated total income for the quarter ended December 31, 2024, was ₹8,592.98 crore, up from ₹6,842.03 crore in the same quarter last year; nine-month total income was ₹24,211.96 crore, up from ₹18,737.70 crore year-over-year.

• Claims ratio for Q3 was 72.6%, down from 74.5% in the same quarter last year.

• Combined ratio for Q3 was 111.7%; excluding the 1/n accounting effect, it was 108.9% (vs. 110.3% last year).

• Profit before tax for Q3 and nine months ended December were INR 137 crores and INR 486 crores, respectively.

• Investment corpus as of December stood at INR 17,006 crores, with investment income of INR 332 crores for the quarter.

Outlook and guidance

• Management expects continued outperformance relative to the industry and adherence to core objectives in upcoming quarters.

• Vehicle Finance: cautious on heavy and small commercial vehicles due to sectoral headwinds; focus on passenger vehicles, two-wheelers, and used vehicles.

• LAP: NBFC credit expected to grow 16-18% through FY26; LAP segment poised for 22-24% growth.

• Anticipates health loss ratios to stabilize around 72% due to increased employer-employee group health business and recent price increases.

• General Insurance: industry remains underpenetrated with strong long-term growth prospects.