Cholamandalam Investment and Finance Company (511243) Q2 2026 earnings summary

Executive summary

• AUM reached ₹2,14,906 Cr, up 21% YoY as of Q2 FY26, with disbursements at ₹24,442 Cr and PAT at ₹1,155 Cr (up 20% YoY).

• Net income for Q2 FY26 was ₹4,075 Cr (up 26% YoY); PBT for Q2 FY26 was ₹1,561–1,565 Cr, up 20% YoY; ROE for Q2 at 18.11%.

• Vehicle finance AUM grew 17%, LAP AUM by 33%, SME AUM by 28%; home loan AUM up 28% but disbursements impacted by procedural delays.

• Board approved audited standalone and consolidated results for the quarter and half year ended September 30, 2025.

• Disbursements remained stable at ₹24,442 Cr for Q2 FY26 and ₹48,767 Cr for H1 FY26.

Financial highlights

• NIM improved to 7.9% in Q2 FY26 from 7.5% in Q1; ROE at 18.11% for Q2; PBT-ROA at 3% for Q2.

• Credit cost ratios improved by 10 bps in Q2 FY26 over Q1 FY26; write-offs were ₹639 Cr in Q2 vs ₹514 Cr in Q1.

• Capital adequacy at 20% (Tier 1: 14.59%) as of September 2025; liquid assets at ₹17,516 Cr.

• Gross NPA (GNPA) increased to 4.57% and Net NPA (NNPA) to 3.07% as of Q2 FY26.

• ALM position comfortable with no negative mismatches; LCR consistently above regulatory requirements.

Outlook and guidance

• Management maintains 20%+ AUM growth guidance for FY26, with stronger disbursement growth expected in H2.

• Credit costs expected to decline to 1.6% for FY26, with further improvement in Q3 and Q4.

• Growth guidance for FY27 is 20–25%, depending on market conditions.

• Vehicle Finance to benefit from infrastructure spending, fleet replacement, and GST rationalization.

• LAP and MSME segments projected to grow at 21–23% and 16–18% respectively in FY26.