Cholamandalam Financial Holdings (CHOLAHLDNG) investor relations material

Executive summary

• Q1 FY27 consolidated revenue rose 20% year-over-year to ₹11,214 Cr, with PAT up 42% to ₹1,789 Cr and EPS at ₹42.92.

• Insurance business GWP grew 6.7% to ₹2,131 Cr, but PAT declined 19.7% to ₹86 Cr due to margin compression and higher claims.

• Strong growth across vehicle finance, loan against property, and home loans segments, with disbursements and AUM up double digits.

• Q1 call focused on insurance business, with NBFC results covered separately.

• General insurance industry grew 8.3% in Q1, led by motor and health; commercial lines under pressure from pricing competition.

Financial highlights

• Net earned premiums for the insurance segment were INR 1,671 Cr; claims ratio rose to 85.6% from 81.3% year-over-year.

• Combined ratio for insurance increased to 120.4, impacted by higher motor reserving, elevated motor OD losses, and a large fire loss of INR 12.4 Cr.

• Consolidated PBT for Q1 FY27 was ₹2,222 Cr, with PAT at ₹1,656 Cr; vehicle finance disbursements up 21% YoY, AUM up 19%.

• Investment portfolio at INR 19,000 Cr, generating INR 380 Cr investment income; portfolio yield improved to 7.31%.

• Assets under management grew 23% to Rs. 2,54,392 Cr as of June 30, 2026.

Outlook and guidance

• Focus remains on profitable growth, disciplined underwriting, and efficient claims management.

• Corrective actions in motor and health expected to show results over coming quarters.

• Vehicle finance sector expects continued growth across HCV, LCV, SCV, passenger vehicles, and two-wheelers, driven by infrastructure, e-commerce, and rural demand.

• LAP and home loan AUM expected to rise 19-21% in FY26 and FY27, with credit costs expected to moderate.

• Commercial lines, especially fire, expected to see more pricing discipline following recent Nat cat events.