Cholamandalam Investment and Finance Company (511243) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 disbursements were INR 24,325 crore, with AUM growing 24% year-over-year to INR 1,92,148 crore, supported by gold loan launches and urban expansion.

• Net income for Q1 FY26 rose 21% year-over-year to INR 1,136 crore; PBT up 21% to INR 1,530 crore.

• Branch network expanded to 1,703 locations, with 88% in Tier-III to Tier-VI towns; customer base reached 42.6 lakh.

• Consolidated total income for Q1 FY26 reached INR 7,353.09 crore, up from INR 5,856.75 crore in Q1 FY25.

• Profit after tax for the quarter was INR 1,137.83 crore, compared to INR 947.15 crore in Q1 FY25.

Financial highlights

• Q1 FY26 income increased 26% year-over-year to INR 7,331 crore; net income margin improved to 7.8%.

• Net credit losses rose 52% year-over-year to INR 882 crore; expense ratio at 2.9%.

• Gross NPA at 4.29% and Net NPA at 2.86% as of Q1 FY26, up from 3.62% and 2.37% respectively.

• Return on equity at 18.8% and ROA (PAT) at 2.3% for Q1 FY26.

• Capital adequacy ratio at 19.96%; Tier 1 at 14.31%.

Outlook and guidance

• Expectation of improved economic activity in H2 FY26, driven by favorable monsoon, festive season, and potential rebound in agricultural income.

• Credit costs projected at 1.4%-1.5% for the full year, with improvement anticipated from Q3 onwards.

• Asset growth guidance maintained at 20%-22%, with vehicle finance expected to grow 17%-18% and mortgage businesses at 30%.

• Home loan book growth expected at 20-22% in FY26, with stable asset quality.

• LAP portfolio to grow 21-23% in FY26.