Cholamandalam Investment & Finance Company Ltd

Q1 FY26Finance

Cholamandalam Investment & Finance Company Q1 FY26 earnings call: Revenue & Margins

Q1 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹1,863

Market cap₹1.6L Cr

P/E28.1

Updated23 Aug 2026

Read4 min read

The short version

Vehicle Finance (VF) growth expected around 15%, contingent on economic recovery and festive season performance (Page 5, 16, 13). Asset growth target is 20% to 22%, with vehicle finance growing at 17%-18%, mortgage business at 30%, and CSEL slightly lower (Page 16).

From Cholamandalam Investment & Finance Company Ltd's Q1 FY26 earnings-call transcript · updated 23 Aug 2026.

Revenue & Sales Performance

Vehicle Finance (VF) growth expected around 15%, contingent on economic recovery and festive season performance (Page 5, 16, 13).
Asset growth in VF targeted at approximately 18%, with disbursement growth projected to rise from 7% to 10-12% within the financial year (Page 13).
Mortgage businesses (including LAP and Home Loans) expected to grow around 30% in asset terms (Page 16).
CSEL (unsecured business loans) growth expected to be lower initially due to strategic cutbacks in fintech partnerships and low ROTA SME products; a rebound anticipated from Q4 onwards through increased in-house digital lending and traditional focus (Page 5, 17).

2 more points management made on revenue & sales performance

Profitability & Margins

Asset growth target is 20% to 22%, with vehicle finance growing at 17%-18%, mortgage business at 30%, and CSEL slightly lower (Page 16).
Overall disbursement growth for FY26 expected around 10%, with vehicle finance at 10%-12% growth in disbursements (Page 13).
PBT for Q1 FY26 grew 21% YoY, with expecting ROA recovery in coming quarters; Q1 PBT ROA was 3.1%, slightly lower by 10 bps than last year (Page 3).
Margins (NIM) expected to improve by about 12-15 bps over the year due to better cost of funds; credit cost guidance around 1.4%-1.5% for full year, improving from Q3 onwards (Pages 8, 13).
Growth in vehicle finance depends on macro factors like agricultural growth and industrial production, potentially achieving 15% growth if economy picks up and festive season is good (Pages 4, 5).

2 more points management made on profitability & margins

See what Cholamandalam Investment & Finance Company Ltd said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

The document does not explicitly mention any current or future capex, capital investment, or strategic investment plans for Cholamandalam Investment and Finance Company Limited up to August 2025. Key observations related to investments or strategic actions include: - Expansion of branch network to over 1,613 branches, including 700 towns planned for new branches. - Launch and growth of gold loan business, initially performing well, mainly in urban markets. - Focus on co-location of branches across vehicle finance (VF), CSEL, SBPL, and SME businesses, with segments targeting different tiers. - Tight control over OPEX, with efforts to improve productivity while keeping expense ratios around 3%.

2 more points management made on capital expenditure plans

Top-ranked in Finance

Ranked on what management guided this quarter

5x potential

1Mufin Green Finance Ltd₹2.6K Cr

Rev 1Mar 1

2Akiko₹454 Cr

Rev 1Mar 1

3₹972 Cr

Rev 1Mar 2

4₹358 Cr

Rev 1Mar 2

5₹1.5L Cr

Rev 1Mar 3

Rank buckets describe management commentary on revenue and margin. Not investment advice, and not a forecast of returns.

Fundraising & Capital Structure

From the provided transcript excerpts, there is no explicit mention of any current or future new fundraising plans through debt or equity by Cholamandalam Investment and Finance Company Limited. Key related points: - The company is borrowing more than Rs. 1,000 crores every month, which includes ongoing financing activities (Page 12). - 2,000 crores worth of CCD (Compulsorily Convertible Debentures) conversion to equity is expected to give only a marginal benefit and is not significant relative to the overall borrowing of Rs. 1,74,000-1,75,000 crores (Page 12). - There is no specific mention of fresh or planned fundraising rounds through debt or equity in the upcoming period. Hence, no new fundraising through debt or equity was specifically indicated in this report.

See what Cholamandalam Investment & Finance Company Ltd said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

The provided pages from the document do not include any specific details or data related to the current or expected order book or pending orders for Cholamandalam Investment and Finance Company Limited. The discussion primarily focuses on asset quality, growth strategies, product segmentation, credit costs, market share, underwriting norms, and economic outlook. No explicit information on order book or pending orders is mentioned in the text on pages 3 to 17. If you need information on order book or pending orders, please provide relevant pages or sections that contain this data.

What Cholaman.Inv.&Fn's management said in earlier quarters

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Frequently Asked Questions

What were Cholamandalam Investment & Finance Company Ltd Q1 FY26 results?

What is Cholamandalam Investment & Finance Company Ltd share price analysis?

Cholamandalam Investment & Finance Company Ltd currently shows a neutral. The stock trades at a P/E of 28.1 with a market cap of ₹161,528 Cr. Investors should review the full earnings analysis for detailed insights.

Is Cholamandalam Investment & Finance Company Ltd planning capital expenditure?

The document does not explicitly mention any current or future capex, capital investment, or strategic investment plans for Cholamandalam Investment and Finance Company Limited up to August 2025.

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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.