Cholamandalam Investment & Finance Company Ltd
Cholamandalam Investment & Finance Company Ltd
Financial Services F&OKey Fundamentals
LargecapNBFCFinancial ServicesInsights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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42 extracted metrics + investor summaries across FY12–FY26.
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Technical Indicators
Key Insights
Strengths
2- Company has delivered good profit growth of 28.0% CAGR over last 5 years
- Company's median sales growth is 21.4% of last 10 years
Weaknesses
3- Stock is trading at 5.21 times its book value
- Company has low interest coverage ratio.
- Company might be capitalizing the interest cost
Growth Rate
AI Analysis — Bull vs Bear
Cholamandalam Investment & Finance Company is a large-cap NBFC (market cap ~₹1.6 lakh crore) with a consistent growth track record — 28% profit CAGR over 5 years, 20% ROE sustained over a decade, and AUM of ~₹2.4 lakh crore in FY26 (up 21% YoY). However, it trades at a premium valuation of 5.2x book and 27.7x earnings, and asset quality has shown some pressure with GNPA at 4.36% as of Q4 FY26.
- Strong profit compounding at 28% CAGR over the last 5 years and 25% CAGR over 10 years, demonstrating sustained earnings momentum
- AUM grew 21% YoY to ~₹2.42 lakh crore in FY26 with management guiding to double AUM over the next 5 years
- Consistent ROE of ~19-20% maintained over 3, 5, and 10-year periods, indicating efficient capital deployment for a lending business
- Diversified growth engines — SME book grew 41% YoY and secured business/personal loans grew 46% YoY in Q4 FY26, reducing dependence on vehicle finance alone
- Revenue from operations grew to ₹30,982 crore in FY26 from ₹25,746 crore in FY25, a 20% increase; 10-year sales CAGR of 22% shows long runway
- Q4 FY26 standalone PAT jumped 31% YoY to ₹1,645 crore, with sequential improvement in asset quality (GNPA declined from 4.63% to 4.36% QoQ)
- Part of the Murugappa Group conglomerate, providing strong parentage, brand trust, and access to capital markets at competitive rates
- Stock has delivered 24% CAGR returns over 10 years, consistently outperforming broader indices
- Trades at 5.24x price-to-book, a significant premium to most NBFC peers, leaving limited margin of safety if growth disappoints
- GNPA at 4.36% and NNPA at 2.87% in Q4 FY26 remain elevated; Q1 FY27 showed further slippage with NNPA rising to 2.95%
- Low interest coverage ratio flagged as a structural concern — typical for NBFCs but magnifies risk in a rising cost-of-funds environment
- Potential capitalisation of interest costs may overstate reported profitability and asset quality, requiring careful scrutiny of accounting treatment
- Dividend yield of just 0.11% offers negligible income return, meaning investors rely entirely on capital appreciation
- PE of 27.7x is demanding for a financial services company and prices in sustained high growth execution with little room for error
- Newer segments (SME, personal loans) growing at 41-46% are unseasoned — credit costs from these books will only be visible over the next 2-3 years
- TTM revenue growth has moderated to 20% from 34% 3-year CAGR, suggesting a natural deceleration as the AUM base scales larger
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- PAT up 46%, AUM ₹2.54L cr Jul 28
Q1FY27 net profit surged 46% YoY to ₹1,654 crore with AUM growing 23% to ₹2.54 lakh crore. Net income rose 28% and company approved ₹55,000 crore NCD issuance for growth funding.
- PBT up 45%, NIM at 8.2% Jul 28
PBT grew 45% to ₹2,220 crore in Q1FY27 with disbursements rising 22% to ₹29,612 crore. NIM expanded to 8.2%, indicating improved lending margins.
- Final dividend of ₹0.70/share Jul 28
Declared ₹0.70 per share final dividend at the 48th AGM held on July 28, 2026.
- ₹350 cr NCD at 8.64% Aug 21
Allotted ₹350 crore secured NCDs with 8.64% coupon rate and nearly three-year tenure for balance sheet funding.
- Q4FY26 earnings call uploaded Jul 28
Audio recording of Q1FY27 earnings call (quarter ended June 30, 2026) uploaded to website per SEBI regulations.
TL;DR: Cholamandalam delivered a standout Q1FY27 with 46% PAT growth, strong disbursement momentum, and expanding NIMs at 8.2%. AUM crossed ₹2.54 lakh crore reflecting robust loan book growth across segments. No visible headwinds in recent news flow. The growth trajectory and margin expansion suggest continued strength if asset quality holds steady.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 4,100 | 4,623 | 5,007 | 5,410 | 5,812 | 6,255 | 6,733 | 7,046 | 7,267 | 7,491 | 7,898 | 8,417 | 8,856 |
| Expenses | 1,174 | 1,391 | 1,412 | 1,417 | 1,727 | 1,897 | 2,038 | 2,010 | 2,286 | 2,460 | 2,554 | 2,597 | 2,652 |
| Financing Profit | 920 | 1,028 | 1,155 | 1,414 | 1,289 | 1,300 | 1,420 | 1,671 | 1,512 | 1,514 | 1,698 | 2,067 | 2,197 |
| Fin. Margin % | 22% | 22% | 23% | 26% | 22% | 21% | 21% | 24% | 21% | 20% | 22% | 25% | 25% |
| Other Income | 71 | 73 | 47 | 105 | 45 | 68 | 105 | 92 | 87 | 123 | 111 | 148 | 102 |
| Interest | 2,006 | 2,204 | 2,441 | 2,579 | 2,796 | 3,059 | 3,275 | 3,365 | 3,468 | 3,517 | 3,646 | 3,753 | 4,007 |
| Depreciation | 39 | 39 | 46 | 75 | 59 | 63 | 59 | 64 | 67 | 71 | 74 | 72 | 75 |
| PBT | 952 | 1,062 | 1,156 | 1,444 | 1,275 | 1,305 | 1,466 | 1,699 | 1,532 | 1,566 | 1,736 | 2,143 | 2,224 |
| Tax % | 25% | 27% | 25% | 26% | 26% | 26% | 26% | 26% | 26% | 26% | 26% | 23% | 26% |
| Net Profit | 710 | 773 | 872 | 1,065 | 947 | 968 | 1,088 | 1,260 | 1,138 | 1,160 | 1,290 | 1,645 | 1,656 |
| EPS in Rs | 8.64 | 9.4 | 10.39 | 12.68 | 11.27 | 11.52 | 12.94 | 14.98 | 13.53 | 13.78 | 15.28 | 19.31 | 19.43 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 3,715 | 4,214 | 4,694 | 5,559 | 7,108 | 8,712 | 9,583 | 10,148 | 12,884 | 19,163 | 25,890 | 31,120 | 32,663 |
| Expenses | 1,061 | 1,266 | 1,322 | 1,451 | 1,632 | 2,421 | 2,858 | 2,926 | 3,621 | 5,385 | 7,670 | 9,890 | 10,264 |
| Financing Profit | 696 | 899 | 1,143 | 1,451 | 1,888 | 1,699 | 2,150 | 2,924 | 3,515 | 4,548 | 5,726 | 6,845 | 7,476 |
| Fin. Margin % | 19% | 21% | 24% | 26% | 27% | 20% | 22% | 29% | 27% | 24% | 22% | 22% | 23% |
| Other Income | 0 | 2 | 3 | 0 | 1 | 0 | 0 | 84 | 220 | 255 | 261 | 412 | 484 |
| Interest | 1,958 | 2,048 | 2,228 | 2,657 | 3,588 | 4,592 | 4,576 | 4,298 | 5,748 | 9,231 | 12,495 | 14,384 | 14,923 |
| Depreciation | 30 | 22 | 39 | 51 | 57 | 111 | 102 | 101 | 121 | 198 | 245 | 284 | 292 |
| PBT | 666 | 879 | 1,107 | 1,401 | 1,832 | 1,588 | 2,048 | 2,908 | 3,615 | 4,605 | 5,741 | 6,973 | 7,668 |
| Tax % | 33% | 35% | 35% | 34% | 35% | 34% | 26% | 26% | 26% | 26% | 26% | 25% | — |
| Net Profit | 444 | 575 | 718 | 918 | 1,197 | 1,054 | 1,521 | 2,154 | 2,665 | 3,420 | 4,263 | 5,233 | 5,751 |
| EPS in Rs | 6.18 | 7.36 | 9.21 | 11.76 | 15.32 | 12.86 | 18.55 | 26.23 | 32.42 | 40.72 | 50.69 | 61.41 | 67.8 |
| Div. Payout % | 11% | 12% | 12% | 11% | 8% | 13% | 11% | 8% | 6% | 5% | 4% | 3% | — |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 144 | 156 | 156 | 156 | 156 | 164 | 164 | 164 | 164 | 168 | 168 | 170 |
| Reserves | 2,531 | 3,514 | 4,142 | 4,969 | 6,052 | 8,036 | 9,436 | 11,605 | 14,182 | 19,425 | 23,500 | 30,288 |
| Borrowing | 19,950 | 22,546 | 24,071 | 38,330 | 50,567 | 55,005 | 63,730 | 69,174 | 97,358 | 1,34,475 | 1,75,036 | 2,11,070 |
| Other Liabilities | 1,243 | 1,673 | 2,230 | 711 | 715 | 853 | 1,314 | 1,536 | 1,923 | 2,618 | 3,182 | 3,920 |
| Total Liabilities | 23,868 | 27,889 | 30,598 | 44,167 | 57,490 | 64,058 | 74,644 | 82,478 | 1,13,627 | 1,56,686 | 2,01,887 | 2,45,448 |
| Fixed Assets | 69 | 120 | 150 | 170 | 167 | 283 | 228 | 259 | 403 | 1,563 | 1,780 | 1,869 |
| CWIP | 0 | 0 | 0 | 4 | 14 | 11 | 10 | 37 | 60 | 13 | 11 | 42 |
| Investments | 25 | 16 | 182 | 23 | 42 | 33 | 1,583 | 2,055 | 3,562 | 4,036 | 6,367 | 6,646 |
| Other Assets | 23,775 | 27,753 | 30,266 | 43,970 | 57,267 | 63,732 | 72,823 | 80,127 | 1,09,602 | 1,51,075 | 1,93,729 | 2,36,892 |
| Total Assets | 23,868 | 27,889 | 30,598 | 44,167 | 57,490 | 64,058 | 74,644 | 82,478 | 1,13,627 | 1,56,686 | 2,01,887 | 2,45,448 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | -2,264 | -2,809 | -1,468 | -7,926 | -9,317 | -2,075 | -8,842 | -5,571 | -27,105 | -35,683 | -32,413 | -30,021 |
| Investing | -40 | -137 | -222 | -60 | -11 | -54 | -1,572 | 1,640 | -2,148 | -2,855 | -2,948 | -2,554 |
| Financing | 1,819 | 3,031 | 1,692 | 8,009 | 12,191 | 2,452 | 8,516 | 5,150 | 27,466 | 38,471 | 39,795 | 35,610 |
| Net Cash Flow | -485 | 85 | 2 | 22 | 2,862 | 323 | -1,898 | 1,218 | -1,787 | -66 | 4,434 | 3,035 |
| Free Cash Flow | -2,294 | -2,885 | -1,525 | -7,994 | -9,391 | -2,145 | -8,873 | -5,665 | -27,293 | -36,754 | -32,600 | -30,263 |
| CFO/OP | -75 | -82 | -29 | -179 | -157 | -24 | -121 | -65 | -283 | -249 | -169 | -133 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE % | 18% | 18% | 18% | 20% | 21% | 15% | 17% | 20% | 20% | 20% | 20% | 19% |
Documents
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Company Information
Cholamandalam Investment & Finance Company is one of the premier diversified non-banking finance companies in India, engaged in providing vehicle finance, home loans and Loan against property.[1]