News ArticleCholamandalam Investment and Finance Posts 47% Rise in 2Q FY27 Disbursements and Plans INR5,000 Crore Capital Raise
Company's total AUM grows 25% YoY to INR2,68,009 crores; capital raise aimed at supporting future growth and maintaining strong balance sheet
Cholamandalam Investment and Finance Company Limited reported robust financial growth for the quarter ended 30 September 2026, with aggregate disbursements up 47% year-on-year to INR35,872 crores and total AUM reaching INR2,68,009 crores, growing 25% year-on-year. Strong performance was seen across vehicle finance, SME finance, and consumer loans. The company announced a proposal to raise up to INR5,000 crores capital to support future growth and maintain capital adequacy, subject to approvals.
Cholamandalam Investment and Finance Company Limited
Earnings Call Transcript
Cholamandalam Investment and Finance Company Limited announced strong financial performance for the quarter ended 30 September 2026, with year-on-year growth across disbursements and assets under management (AUM). The company also approved plans to raise up to INR5,000 crores in capital to support its growth and capital adequacy.
The company's aggregate disbursements rose 47% year-on-year to INR35,872 crores during the quarter, reflecting robust demand and expansion of its distribution network.
Total AUM stood at INR2,68,009 crores, marking a 25% increase compared to the previous year.
Vehicle finance segment posted a 31% YoY growth in disbursements to INR17,801 crores and AUM reached INR1,29,787 crores, up 21% YoY.
SME finance including loan against property (LAP), SME loans, and small business loans (SBPL) recorded disbursement growth of 42% YoY to INR9,345 crores and AUM increased 27% to INR72,356 crores.
Consumer loans comprising housing loans, customer special equipment loans (CSEL), and gold loans grew disbursements by 103% YoY to INR8,726 crores, driving AUM to INR45,902 crores, a 32% increase from the prior year period, with gold loans notably up 320%. These loans are supported by expansion in distribution footprint and stronger channel partnerships alongside digital lending platforms for CSEL and consumer durable financing segments.
Highlights
- Aggregate disbursements grew 47% YoY to INR35,872 crores in 2Q FY27.
- Total AUM increased 25% YoY to INR2,68,009 crores as of September 2026.
- Vehicle finance disbursements rose 31% YoY; AUM up 21% YoY to INR1,29,787 crores.
- SME finance AUM grew 27% YoY to INR72,356 crores with LAP, SME and SBPL all increasing.
- Consumer loans disbursements doubled (+103% YoY) to INR8,726 crores; gold loan disbursements surged 320%.
- Net interest margins (NIM) remained healthy despite volatile interest rates; credit cost fell 37 basis points, improving profitability metrics including ROE to 19.4%. Gross Stage 3 and GNPA ratios improved marginally from prior quarter to
Key Data Snapshot
What happened
- Cholamandalam Investment and Finance reported strong quarterly growth with aggregate disbursements increasing by 47% year-on-year to INR35,872 crores for the quarter ended September 30, 2026.
- Total Assets Under Management (AUM) rose 25% year-on-year to INR2,68,009 crores.
- Vehicle finance disbursements grew 31% year-on-year to INR17,801 crores; AUM reached INR1,29,787 crores, a 21% increase.
- SME finance segment including loan against property, SME loans and small business loans disbursements rose by 42% to INR9,345 crores; AUM grew 27% to INR72,356 crores.
- Consumer loans, including housing loans, CSEL and gold loans, posted disbursement growth of 103% to INR8,726 crores with AUM of INR45,902 crores, up 32%.
- The company maintained healthy net interest margins and reduced credit costs by 37 basis points, resulting in profitability improvements and increase in return on equity to 19.4%.
- Gross Stage 3 and GNPA ratios improved modestly compared to the preceding quarter.
- The Board approved a proposal to raise up to INR5,000 crores in capital subject to shareholder and regulatory approval to support growth and capital adequacy.
Key details
- Disbursement growth was driven by strong execution, market share gains, expansion of distribution footprint and customer engagement.
- Vehicle finance growth benefited from replacement demand and economic activity improvement leading to healthy freight utilization.
- SME finance growth was broad-based with LAP up 24%, SME loans up 45%, and SBPL up 35% year-on-year.
- Consumer loan growth particularly strong in gold loans with 320% YoY disbursement increase and CSEL loans leveraging digital lending platforms.
- Capital adequacy ratio stood at 20.62% with Tier 1 capital at 16.02% as of September 2026.
- The company holds liquid assets of INR21,974 crores including undrawn sanctioned credit lines.
Funding and capital details
- The Board has approved a proposal to raise capital of up to INR5,000 crores, subject to approvals.
- The capital raise aims to strengthen the capital base and provide flexibility for sustainable growth.
- Last capital raise occurred approximately three years ago.
- The timing of the capital raise will depend on market conditions and is planned for the near to medium term.
Highlights
- Aggregate disbursements grew 47% YoY to INR35,872 crores in 2Q FY27.
- Total AUM increased 25% YoY to INR2,68,009 crores as of September 2026.
- Vehicle finance disbursements rose 31% YoY; AUM up 21% YoY to INR1,29,787 crores.
- SME finance AUM grew 27% YoY to INR72,356 crores with LAP, SME and SBPL all increasing.
- Consumer loans disbursements doubled (+103% YoY) to INR8,726 crores; gold loan disbursements surged 320%.
- Net interest margins (NIM) remained healthy despite volatile interest rates; credit cost fell 37 basis points, improving profitability metrics including ROE to 19.4%. Gross Stage 3 and GNPA ratios improved marginally from prior quarter to
Disclosures
- RBI norms for Gross Non-Performing Assets (GNPA) and credit cost reporting
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