Cholamandalam Financial Holdings (CHOLAHLDNG) Q3 25/26 earnings summary

Executive summary

• Consolidated revenue for Q3 FY26 rose 17% year-over-year to ₹10,084 Cr, with profit after tax up 27% to ₹1,386 Cr and EPS at ₹33.32, a 29% increase from Q3 FY25.

• Year-to-date (YTD) Dec 25 revenue grew 19% to ₹29,056 Cr, and profit after tax increased 14% to ₹3,860 Cr, with EPS up 12% to ₹93.42 compared to YTD Dec 24.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025.

• GDPI for Q3 FY26 was INR 2,067 crore; nine-month GDPI was INR 5,714 crore, impacted by loss of crop insurance business due to retendering, reducing GDPI by INR 84 crore in Q3 and INR 467 crore for nine months.

• Profit before tax for nine months was INR 346 crore, after absorbing INR 7 crore gratuity provisioning; ROE for nine months at 7.9% (not annualized).

Financial highlights

• Vehicle Finance disbursements grew 17% in Q3 FY26 and 11% YTD, with AUM up 17% YoY; PBT rose 14% in Q3 and 8% YTD.

• Loan Against Property (LAP) disbursements increased 26% in Q3 and 18% YTD, with AUM up 31% YoY; PBT surged 44% in Q3 and 43% YTD.

• Home Loans disbursements rose 10% in Q3 and 1% YTD, AUM up 27% YoY; PBT up 27% in Q3 and 22% YTD.

• General Insurance GWP grew 5.8% YTD; PAT declined 29.2% YTD due to higher claims and provisioning.

• EOM for Q3 was 30.63 (29.27 without 1:1), down from 33.76 YoY.

Outlook and guidance

• Management expects improvement in combined ratio and ROE as corrective actions in motor OD and health segments take effect.

• Vehicle Finance expects continued positive momentum in HCV, LCV, and passenger vehicles, with stable demand in SCV and modest improvement in construction equipment.

• LAP and Home Loans segments are positioned for growth, leveraging strong retail demand and government housing initiatives.

• Plans to participate in new crop insurance tenders next year, aiming to restore profitability and combined ratio.

• If regulatory changes allow, expects further improvement in ROE, potentially reaching 16-18% as per IRDA norms.