Cholamandalam Investment Q2 Results: PAT rises 41% to Rs 1,630 crore, beats estimates; board approves Rs 5,000 crore QIP

Cholamandalam Investment and Finance Company on Wednesday reported a 41 per cent year-on-year increase in standalone profit after tax. Image Credit: Canva

Cholamandalam Investment and Finance Company on Wednesday reported a 41 per cent year-on-year increase in standalone profit after tax (PAT) to Rs 1,630 crore for the September quarter of FY27, compared with the Zee Business estimate of Rs 1,585 crore. The company's profit exceeded the estimate by Rs 45 crore.

Net income for the quarter rose 24 per cent year-on-year to Rs 5,037 crore. For the first half of FY27, net income increased 26 per cent to Rs 9,967 crore, while profit after tax rose 43 per cent to Rs 3,284 crore.

The company's profit before tax (PBT) grew 40 per cent year-on-year to Rs 2,187 crore in the second quarter, compared with Rs 1,565 crore in the corresponding quarter of the previous fiscal. For the first half of FY27, PBT increased 42 per cent to Rs 4,409 crore from Rs 3,096 crore a year earlier.

Assets under management rise 25% to Rs 2.68 lakh crore

Cholamandalam Investment and Finance Company's assets under management (AUM) increased 25 per cent year-on-year to Rs 2,68,009 crore as of September 30, 2026, compared with Rs 2,14,906 crore a year earlier. The growth was higher than the 23 per cent increase estimated by Zee Business.

Aggregate disbursements stood at Rs 35,872 crore in the second quarter of FY27 and Rs 65,484 crore in the first half of the fiscal year.

Vehicle finance disbursements stood at Rs 17,801 crore in the September quarter and Rs 34,304 crore in the first half. The segment's AUM rose 21 per cent year-on-year to Rs 1,29,787 crore from Rs 1,07,568 crore.

The loan-against-property business reported disbursements of Rs 6,438 crore in the quarter and Rs 11,218 crore in the first half. Its AUM increased 24 per cent year-on-year to Rs 57,447 crore from Rs 46,302 crore.

The home loan business disbursed Rs 2,426 crore in the second quarter and Rs 4,223 crore in the first half. Its AUM grew 24 per cent to Rs 25,240 crore from Rs 20,405 crore a year earlier.

SME loan AUM grows 45% year-on-year

The small and medium enterprises (SME) loan business recorded disbursements of Rs 2,453 crore in the September quarter and Rs 4,445 crore in the first half of FY27. Its AUM increased 45 per cent year-on-year to Rs 10,943 crore from Rs 7,544 crore.

Consumer and small enterprise loans (CSEL) disbursements stood at Rs 4,339 crore in the quarter and Rs 7,747 crore in the first half. The segment's AUM rose 23 per cent year-on-year to Rs 17,216 crore from Rs 13,952 crore.

The secured business and personal loan segment recorded disbursements of Rs 454 crore in the September quarter and Rs 833 crore in the first half. Its AUM increased 35 per cent to Rs 3,966 crore from Rs 2,932 crore.

The gold loan business reported disbursements of Rs 1,960 crore in the second quarter and Rs 2,714 crore in the first half. Its AUM stood at Rs 3,446 crore as of September 30, 2026. The company operates 308 dedicated branches for its gold loan business.

Asset quality improves marginally in September quarter

Cholamandalam Investment and Finance Company's Stage 3 assets, representing dues overdue for more than 90 days, stood at 3.25 per cent as of September 2026, compared with 3.29 per cent at the end of June 2026.

Gross non-performing assets (GNPA), as per Reserve Bank of India norms, stood at 4.44 per cent in September, down from 4.50 per cent in June. Net non-performing assets (NNPA) declined to 2.92 per cent from 2.95 per cent over the same period.

The company's capital adequacy ratio stood at 20.62 per cent as of September 30, against the regulatory requirement of 15 per cent. Tier-I capital was at 16.02 per cent, including common equity Tier-I capital of 14.88 per cent against the regulatory minimum of 9 per cent. Tier-II capital stood at 4.60 per cent.

The company completed the conversion of compulsorily convertible debentures (CCDs) into equity shares during September.

Board approves QIP of up to Rs 5,000 crore

The company's board has approved raising up to Rs 5,000 crore through a qualified institutional placement (QIP) of equity shares and/or eligible securities convertible into equity shares.

The proposed issue will be offered to eligible qualified institutional buyers in one or more tranches. The price and other terms will be determined in accordance with the applicable Securities and Exchange Board of India regulations and other laws, subject to the receipt of necessary approvals.

Cholamandalam Investment and Finance Company reported a cash balance of Rs 21,352 crore at the end of September 2026. This included high-quality liquid assets of Rs 7,745.42 crore invested in government securities, state development loans and strips held to comply with liquidity coverage ratio requirements.

Its total liquidity position stood at Rs 21,974 crore, including undrawn sanctioned lines. The company said its asset-liability management position remained comfortable, with no negative cumulative mismatches across time buckets.

Return on assets stood at 3.4 per cent for the second quarter and 3.5 per cent for the first half of FY27. Return on equity was 19.43 per cent for the September quarter and 20.26 per cent for the first half.