Cholamandalam Investment and Finance Company (511243) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 disbursements reached ₹29,962 Cr, up 16% YoY, with AUM at ₹2,27,770 Cr, reflecting 20% YoY growth; net income for Q3 was ₹1,288 Cr, up 19% YoY, and PAT for the quarter was ₹1,288 Cr.

• Vehicle finance disbursements grew 17% YoY, supported by GST rate cuts and strong demand; LAP, home loans, and SBPL disbursals grew 26%, 10%, and 30% YoY, with AUM growth of 31%, 27%, and 52% respectively.

• Net income for Q3 FY26 was ₹4,342 Cr, up 23% YoY; YTD Dec25 PAT up 20% to ₹3,579 Cr.

• Branch network expanded to 1,757 locations, serving over 44.7 lakh customers with 71,260 employees.

• Board approved an interim dividend of 65% (₹1.30 per share) for FY26.

Financial highlights

• Q3 FY26 income up 17% YoY to ₹7,985 Cr; net interest income for Q3 FY26 was ₹4,342 Cr, up 23% YoY.

• PBT for Q3 FY26 rose 18% YoY to ₹1,733 Cr; ROA (PBT) at 3.2%; ROE at 19.11%.

• Net income margin improved to 8.0% in Q3 FY26; expense ratio stable at 3.1%.

• Credit costs improved marginally; vehicle finance credit costs stabilized at 2% and are expected to moderate further.

• GNPA at 4.63% and NNPA at 3.13% as of Q3 FY26; provision coverage ratio at 43.03%.

Outlook and guidance

• Q4 is expected to show improved performance, with disbursements and collections trending positively; AUM growth guidance maintained at 20%-22% for the year.

• NIM expected to hold at current levels, with slight improvement possible in Q4.

• Positive momentum expected in HCV, LCV, and passenger vehicle segments, with continued focus on portfolio quality.

• LAP and home loans expected to benefit from strong retail credit demand and government housing initiatives.

• Credit costs in CSEL expected to decline below 5% in the next financial year as portfolio quality improves.