Cholamandalam Investment and Finance Reports Strong Growth in Q1 FY27; AUM Expands 23% to INR2,54,392 Crores

Cholamandalam Investment and Finance Reports Strong Growth in Q1 FY27; AUM Expands 23% to INR2,54,392 Crores

Mr. Vellayan Subbiah, Executive Chairman, Cholamandalam Investment and Finance Company Limited, attended the Q1 FY27 concall and said that Chola continued its strong growth trajectory in Q1, reporting aggregate disbursements of INR 29,612 crores, up 22% year-on-year, reflecting healthy performance across all major businesses. As a result, the company's AUM expanded 23% year-on-year to INR 2,54,392 crores, underscoring the strength of customer demand and effectiveness of its distributing and operating model.

The Print Times

The vehicle finance business maintained its growth momentum, with disbursements increasing 21% year-on-year during the quarter. Growth was aided by healthy demand trends across key vehicle categories and deep market penetration, resulting in auto AUM growing 19% to INR1,24,132 crores.

Cholamandalam Investment and Finance Company Limited (Chola), incorporated in 1978 as the financial services arm of the Murugappa Group, commenced business as an equipment financing company and has today emerged as a comprehensive financial services provider offering vehicle finance, home loans, loan against property, SME loans, Secured Business Personal Loans (SBPL), Consumer & Small Enterprises Loans (CSEL), Loan against Securities and a variety of other financial services to customers.

The MSME portfolio also demonstrated continued resilience, with disbursements growing 6% year-on-year and AUM increasing 26% year-on-year. The segment benefited from sustained customer acquisition and continued expansion in underpenetrated markets.

Within the segment, LAP AUM grew 23% year-on-year to INR54,130 crores. SME AUM and SBPL AUM recorded robust growth of 39% and 40%, reaching INR9,923 crores and INR3,730 crores, respectively.

The consumer segment delivered strong growth during the quarter, with disbursements increasing 52% year-on-year, reflecting sustained traction across all product categories and continued customer acquisition momentum. As a result, Assets Under Management (AUM) grew 24% year-on-year to INR41,671 crores.

Within the segment, home loans continued to scale steadily, with AUM increasing 22% year-on-year to INR23,644 crores. CSEL AUM grew 12% to INR15,884 crores, while gold loans witnessed strong expansion, with AUM reaching INR2,143 crores, supported by growing customer acceptance and network expansion.

NIMs improved by 42 bps year-on-year in Q1, supported by lower funding costs. Credit costs declined by 24 bps year-on-year, aided by healthy collections and continued stability in portfolio performance.

Continued improvement in margins and asset quality drove stronger profitability, with ROA increasing to 3.7% in Q1 FY27 from 3.1% a year earlier, while ROE stood at 21.2%, reflecting the company's disciplined growth strategy and efficient capital deployment.

The company continues to maintain a strong liquidity and capital position, with liquid assets of INR23,984 crores, including undrawn sanctioned lines.

As of June 2026, the capital adequacy ratio of the company stood at 19.81%, with Tier 1 capital at 14.81%, providing ample headroom to support future growth.

Of the INR2,000 crores CCD issuance, INR1,370 crores were converted into equity during FY26, followed by a further INR200 crores conversion in July 2026. The remaining INR430 crores of CCDs is expected to be converted in October 2026, further reinforcing the company's capital base.

Published at : Oct 02, 2026 10:57 AM (IST)

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