Cholamandalam Investment and Finance Company (511243) Q4 25/26 earnings summary

Executive summary

• Q4 FY26 disbursements grew 25% YoY to ₹32,913 Cr, driving AUM up 21% to ₹2,42,630 Cr as of March 2026.

• FY26 disbursements totaled ₹1,11,642 Cr (up 11% YoY); PAT for FY26 was ₹5,220 Cr, up 23% YoY.

• Profit before tax (PBT) for FY26 was ₹6,961 Cr, up 21% YoY; Q4 FY26 PBT was ₹2,137 Cr, up 25% YoY.

• Branch network expanded to 1,761 locations, with 88% in Tier-III to Tier-VI towns.

• Asset quality indicators remain resilient, with improved collection efficiency and lower early defaults.

Financial highlights

• Vehicle finance disbursements up 36% YoY in Q4; AUM up 18% to ₹1,19,558 Cr.

• MSME segment AUM grew 29% YoY; LAP AUM up 26%, SME AUM up 41%, SBPL AUM up 46%.

• Consumer segment disbursements up 45% YoY; gold loan business disbursed ₹2,469 Cr in FY26.

• NIMs improved to 8.4% in Q4 FY26 (up 40 bps YoY); FY26 at 8.0%.

• Capital adequacy at 19.21% (Tier 1: 14.73%) as of March 2026.

Outlook and guidance

• FY27 AUM growth guided at 20%-23%; vehicle finance disbursement growth expected at 15%-20%.

• Net credit cost expected to decline to 1.5% (from 1.6% pre-overlay), with pre-tax ROA targeted at 3.5%.

• LAP segment projected to grow 20-22% YoY in FY26-FY27; home loan AUM expected to rise 19-21%.

• Home Loan and LAP asset growth expected at 25%-30%; mortgage businesses to drive overall growth.

• CSEL segment expected to achieve 20% asset growth and improve pre-tax ROA to over 3%.