Cholamandalam Investment and Finance Company (511243) investor relations material

Executive summary

• Disbursements grew 22% year-on-year to ₹29,612 Cr in Q1 FY27, with AUM expanding 23% to ₹2,54,392 Cr, reflecting robust demand and effective distribution across all major businesses.

• Net income margin improved to 8.2% from 7.8% YoY; PAT rose 46% YoY to ₹1,654 Cr; PBT up 45% YoY to ₹2,222 Cr.

• Return on equity increased to 21.2% from 18.8% YoY; branch network expanded to 1,820 locations.

• Board approved fund raising via non-convertible debentures up to ₹55,000 Cr in one or more tranches.

• Gold loan AUM crossed ₹2,000 Cr, with plans to open 360 new branches and target ₹5,000 Cr AUM by year-end.

Financial highlights

• Q1 FY27 income grew 22% YoY to ₹8,933 Cr; expenses up 23% YoY to ₹1,787 Cr.

• NIM improved by 42 basis points YoY in Q1, aided by lower funding costs; NIM at 8.2%.

• Credit cost declined by 24 basis points YoY to 1.5%, with ROA rising to 3.7% from 3.1% and ROE at 21.2%.

• Capital adequacy ratio stood at 19.81% with Tier 1 at 14.81% as of June 2026.

• Consolidated PAT for Q1 FY27 at ₹1,656 Cr, up 46% YoY.

Outlook and guidance

• Management expects to maintain 22% disbursement growth and 23% AUM growth for FY27, with no visible adverse impact from macro factors so far.

• Credit cost guidance remains at 1.5% for the year, with potential for further improvement.

• NIM expected to remain stable at 8.2%, with possible margin expansion if funding costs stay flat.

• Further CCD conversion planned in October 2026 to reinforce capital base.

• Prudent risk management and focus on high-quality asset portfolio to drive sustainable growth.