Cholamandalam Investment and Finance Q1 FY27 Earnings Call Transcript Released
Cholamandalam Investment and Finance reported Q1 FY27 results with disbursements up 22% to ₹29,612 crore and AUM up 23% to ₹2,54,392 crore. ROA stood at 3.7% and ROE at 21.2%. Net credit cost declined to 1.5%. The company plans to expand its gold loan business to ₹5,000 crore AUM and maintain a PBT-ROA of at least 3.5%.
The announcement details significant financial performance improvements and strategic growth initiatives across multiple business lines, which are material for investors and stakeholders.
The company reported strong year-on-year growth in disbursements and AUM, along with improved profitability metrics (ROA, ROE) and a decline in credit costs. Management expressed confidence in future performance and growth across various business segments.
Cholamandalam Investment and Finance Company Limited has released the transcript of its earnings call for the quarter ended June 30, 2026. The call, which took place on July 28, 2026, featured Executive Chairman Mr. Vellayan Subbiah, Managing Director and CEO Mr. Ravindra Kundu, and Chief Financial Officer Mr. Arul Selvan. They discussed the company's strong growth trajectory, with aggregate disbursements increasing by 22% year-on-year to ₹29,612 crore and Assets Under Management (AUM) expanding by 23% to ₹2,54,392 crore.
The vehicle finance business saw disbursements grow by 21% year-on-year, with auto AUM reaching ₹1,24,132 crore. The MSME portfolio disbursements grew by 6% and AUM increased by 26%, with LAP AUM at ₹54,130 crore, SME AUM at ₹9,923 crore, and SBPL AUM at ₹3,730 crore. The consumer segment showed robust growth with disbursements up 52% year-on-year and AUM at ₹41,671 crore, including home loans at ₹23,644 crore and CSEL at ₹15,884 crore. Gold loans AUM reached ₹2,143 crore.
Net Interest Margins (NIMs) improved by 42 basis points year-on-year due to lower funding costs, and credit costs declined by 24 basis points, leading to a Return on Assets (ROA) of 3.7% and Return on Equity (ROE) of 21.2% in Q1 FY27. The company maintains a strong liquidity position with liquid assets of ₹23,984 crore and a capital adequacy ratio of 19.81%. The conversion of ₹200 crore of CCDs in July 2026 further strengthened the capital base, with ₹430 crore expected to convert in October 2026.
During the Q&A, management addressed concerns about asset quality, explaining that the increase in Stage 3 assets from Q4 to Q1 is seasonal and less pronounced than the previous year. They reaffirmed their guidance for net credit cost to be around 1.5% for FY27. The company is also expanding its gold loan business, aiming to hit ₹5,000 crore AUM this financial year with the opening of 360 new branches. Management expressed confidence in maintaining or improving the PBT-ROA, targeting at least 3.5% for the full year.
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