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

Executive summary

• Q3 FY26 disbursements reached ₹29,962 Cr, up 16% YoY; AUM grew to ₹2,27,770 Cr, up 20% YoY, with net income for Q3 at ₹1,288 Cr, up 19% YoY.

• Vehicle finance disbursements grew 17% YoY, supported by GST rate cuts and broad-based demand; AUM in vehicle finance up 17%.

• Strong disbursement and AUM growth in LAP (26%/31% YoY), home loans (10%/27% YoY), and SBPL (30%/52% YoY).

• 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

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

• Profit before tax for Q3 FY26 was ₹1,733 Cr (up 18% YoY); PAT at ₹1,288 Cr (up 19% YoY).

• NIM improved by 33 bps YoY in Q3; net income margin at 8.0%.

• Operating expenses remained steady YoY, despite new labor code impact.

• Credit costs improved marginally; vehicle finance credit costs stabilized at 2%.

Outlook and guidance

• Q4 expected to show improved performance, with positive trends in disbursements and collections.

• AUM growth guidance maintained at 20%-22% for FY26; NIMs expected to hold at current levels barring macro shocks.

• Positive momentum expected in HCV, LCV, and passenger vehicle segments; construction equipment and tractor outlook strong.

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

• Further CCD conversions expected to improve Tier I capital in March 2026.