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 PAT was ₹5,220 Cr, up 23% YoY; PBT for FY26 was ₹6,973 Cr, up 21% YoY.

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

• Broad-based growth across all major product segments, including vehicle finance, MSME, and consumer segments.

• 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); net income for Q4 FY26 was ₹4,789 Cr (up 27% YoY).

• Return on assets for Q4 FY26 at 4.1% (pre-overlay); ROE for FY26 at 19.74%.

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% (pre-overlay); pre-tax ROA targeted at 3.5%.

• Home Loan and LAP asset growth expected at 25%+, with disbursement growth in HL at 12%-15%.

• LAP segment projected to grow 20-22% YoY in FY26-FY27; NBFC retail delinquencies expected to remain controlled.

• Home loan AUM expected to rise 19-21% in FY26 and FY27, supported by affordable housing demand.