Cholamandalam Financial Holdings (CHOLAHLDNG) Q3 25/26 earnings summary

Executive summary

• Consolidated revenue for Q3 FY26 rose 17% year-over-year to ₹10,084 Cr, with profit after tax up 27% to ₹1,386 Cr and EPS at ₹33.32, a 29% increase from Q3 FY25.

• Year-to-date (YTD) Dec 25 revenue grew 19% to ₹29,056 Cr, and profit after tax increased 14% to ₹3,860 Cr, with EPS up 12% to ₹93.42 compared to YTD Dec 24.

• Chola MS reported GDPI of INR 2,067 crore for Q3 and INR 5,714 crore for the nine months ended December 2025, with a significant impact from the loss of crop insurance business due to a retender, reducing GDPI by INR 84 crore for the quarter and INR 467 crore for the nine months.

• The company’s principal line, motor insurance, held a 5.25% market share, with 51% in cars, 38% in commercial vehicles, and 11% in two-wheelers; 25% of motor premium came from new vehicles in Q3.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025.

Financial highlights

• Vehicle Finance disbursements grew 17% in Q3 FY26 and 11% YTD, with AUM up 17% YoY; PBT rose 14% in Q3 and 8% YTD.

• Loan Against Property (LAP) disbursements increased 26% in Q3 and 18% YTD, with AUM up 31% YoY; PBT surged 44% in Q3 and 43% YTD.

• Home Loans disbursements rose 10% in Q3 and 1% YTD, AUM up 27% YoY; PBT up 27% in Q3 and 22% YTD.

• General Insurance GWP grew 5.8% YTD; PAT declined 29.2% YTD due to higher claims and provisioning.

• GWP for Q3 was INR 2,338 crore and INR 6,555 crore for the nine-month period, including reinsurance inward business.

Outlook and guidance

• Management expects to return to a normal growth path in the coming year, with the potential to regain crop business through a new three-year tender, which should improve profitability and combined ratio.

• Vehicle Finance expects continued positive momentum in HCV, LCV, and passenger vehicles, with stable demand in SCV and modest improvement in construction equipment.

• LAP and Home Loans segments are positioned for growth, leveraging strong retail demand and government housing initiatives.

• General Insurance sector remains underpenetrated, with long-term growth potential driven by regulatory support and product innovation.

• Corrective actions in motor OD and health segments are expected to reduce loss ratios by 3-5% over the next two quarters.