Cholamandalam Investment and Finance Company (511243) Status update summary

Financial position and outlook

• Performance, asset quality and liquidity described as robust based on audited H1 ended September 2025; prior guidance unchanged, with delivery to the board-approved plan.

• Cash and bank balances were INR 14,900 crore at November 30, 2025; ALM positive across all time buckets; CAR 19.79%, including Tier I capital of 14.53%.

• Net worth was INR 26,783 crore at November 30, up over INR 3,000 crore from FY2025 closing; INR 300 crore of FY2024 CCDs converted, with another INR 1,700 crore expected to convert over the next 3 quarters.

• Rating was stated as double A plus; management said it was discussing performance and evaluation criteria with rating agencies but could not give timing for a potential upgrade.

Allegations and compliance response

• Management called the allegations malicious and baseless, said it would assess possible libel action with legal advisers, and left assessment of the alleged motive to regulators.

• Management said cash collections are less than 20% of total collections; a later response put the current share at 15%, down from 50% historically, reflecting cash-based borrowers in rural markets.

• GNPA is checked by RBI, statutory and internal auditors, as well as independent bank-appointed ASM auditors; management described the under-reporting claim as speculative.

• Rating fees were INR 20 crore across 3 agencies in the last year against borrowings of INR 1,74,000 crore; management cited 0.01% of borrowings and said fees were in line with, or slightly below, industry practice.

Related-party transactions and group services

• Management said related-party transactions are disclosed in financial statements and comply with applicable rules; pricing was independently verified and reviewed by statutory auditors as arm’s length.

• Murugappa Management Services provided shared group functions to 29 businesses on a no-profit, cost-matched basis; its role was pared down from FY2022, with payments below INR 1 crore per annum over the last 3 years.

• Related-party insurance, IT and manpower services were described as ordinary-course activities; CBSL supplies feet-on-street staffing, with recruitment and training pathways into the main business.

• CSR spending is disclosed by project; projects above INR 1 crore are audited, and implementation agencies receive works-contract payments tied to monitored project delivery.