Cholamandalam Financial Holdings (CHOLAHLDNG) Q4 24/25 earnings summary

Executive summary

• Gross direct premium for Q4 FY2025 was INR 2,029 crore, with total GWP including reinsurance at INR 2,135 crore.

• Full-year gross direct premium reached INR 8,124 crore, with gross written premium at INR 8,328 crore, growing at 1.5x to 1.6x industry rates.

• Consolidated revenue for Q4 FY25 was ₹9,010 Cr, up 26% year-over-year; profit after tax reached ₹1,362 Cr, up 19% year-over-year.

• For the full year FY25, consolidated revenue was ₹33,460 Cr (up 28%) and profit after tax was ₹4,740 Cr (up 23%).

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2025, were approved by the Board and received unmodified audit opinions.

Financial highlights

• Q4 PBT was INR 195 crore; full-year PBT was INR 680 crore, including a one-time income of INR 54 crore from investment recoveries.

• Return on equity for the year was 18.5%, aided by the one-time gain.

• Consolidated profit after tax for the year was ₹4,739.88 crore, up from ₹3,850.56 crore year-over-year.

• Earnings per share (consolidated, basic and diluted) for the year were ₹115.76, up from ₹94.39 year-over-year.

• Investment corpus surpassed INR 18,000 crore.

Outlook and guidance

• ROE levels around 18% are considered sustainable for the next few years, even excluding one-time gains.

• Combined ratio expected to gradually improve by about 1% annually, with further reductions possible if industry pricing improves.

• Vehicle Finance growth in FY26 expected from infra spending, e-commerce, and rural demand; cautious approach in segments with de-growth.

• LAP and Home Loans to benefit from underpenetrated markets and government housing initiatives; focus on rural and tier 3/4 expansion.

• Board recommended a final dividend of ₹1.30 per equity share (130%) for FY25, subject to shareholder approval.