Cholamandalam Investment Q2 FY27 Earnings Call Transcript Released
Cholamandalam Investment's Q2 FY27 earnings call transcript reveals robust growth. Disbursements rose 47% YoY to ₹35,872 crore, with AUM at ₹2,68,009 crore (+25% YoY). Consumer loans surged 103% YoY. The company plans to raise up to ₹5,000 crore to bolster its capital base and support future growth.
The strong financial performance, including significant growth in disbursements and AUM, coupled with the planned capital raise of ₹5,000 crore, are material events that are likely to have a significant impact on the company's future growth trajectory and investor sentiment.
The company reported strong year-on-year growth in disbursements and AUM across its key lending segments, improved profitability metrics (PBT ROA and ROE), and maintained healthy credit quality and capital adequacy. The announcement of a planned capital raise to support future growth further indicates a positive outlook.
Cholamandalam Investment and Finance Company Limited has released the transcript of its earnings call for the quarter and half-year ended September 30, 2026. The call, which took place on October 28, 2026, featured insights from Executive Chairman Mr. Vellayan Subbiah, MD & CEO Mr. Ravindra Kundu, and CFO Mr. Arul Selvan. Key highlights from the discussion included strong momentum in lending businesses with a 47% year-on-year growth in disbursements to ₹35,872 crore, leading to an Assets Under Management (AUM) of ₹2,68,009 crore, a 25% year-on-year increase.
Disbursements in vehicle finance grew by 31% year-on-year to ₹17,801 crore, with AUM reaching ₹1,29,787 crore. The SME finance business saw a 42% rise in disbursements to ₹9,345 crore and an AUM of ₹72,356 crore. Consumer loans, including housing loans, CSEL, and gold loans, experienced a significant 103% year-on-year surge in disbursements to ₹8,726 crore, with AUM at ₹45,902 crore.
The company reported healthy Net Interest Margins (NIMs) and a reduction in credit costs by 37 basis points. Profitability improved, with PBT ROA expanding by 40 bps and ROE rising to 19.4%. Gross Stage 3 assets improved to 3.25%, and GNPA stood at 4.44%. The company maintains a strong capital position with a Capital Adequacy Ratio of 20.62%.
Furthermore, the Board has approved a proposal to raise up to ₹5,000 crore in capital, subject to approvals, to strengthen the capital base and support future growth. Management expressed confidence in sustaining the growth momentum, with plans to focus on scaling existing businesses and exploring new opportunities. The company also discussed its outlook on credit quality, potential impacts of drought conditions, and strategies for managing borrowing costs and yields amidst evolving interest rate scenarios. The Opex ratio is expected to remain between 3.0% and 3.1% in the near term, with an objective to reduce it to around 2.8% over the next two to three years.
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