Cholamandalam Investment & Finance Company Ltd Q4 FY25 Results & Concall Highlights: Revenue, Margins & Order Book
Published 4 Aug 2026 | Finance | Market Cap: ₹1.6L Cr
Overall AUM growth target is 20% to 25% per year, maintaining medium-term guidance. The company targets overall AUM growth of 20% to 25% annually in the medium term.
From Cholamandalam Investment & Finance Company Ltd's Q4 FY25 earnings-call transcript · updated 23 Aug 2026.
Price
₹1,863
Market Cap
₹1.6L Cr
P/E Ratio
28.1
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📊 Revenue & Sales Performance
- →Overall AUM growth target is 20% to 25% per year, maintaining medium-term guidance.
- →Vehicle finance: Targeting 15% disbursement growth translating to 20% asset growth in FY '26.
- →Non-vehicle segments (Home Loans, LAP, SME, CSEL): Targeting around 30% asset growth; Home Loans disbursement expected at 15-20%, translating to 30%+ book growth over next 2 years.
- →SME lending disbursements expected to be flat in near term but growth is anticipated as new products (small term loans and equipment finance) gain traction.
- →Gold loan business being launched with a pilot plan aiming for INR 2,000 crores AUM in 1.5 years, potentially expanding further based on performance.
- →Overall, the company plans to sustain disbursement growth aligned with improving productivity and cautious geographical expansion rather than aggressive branch additions.
📈 Profitability & Margins
- →The company targets overall AUM growth of 20% to 25% annually in the medium term.
- →Vehicle Finance segment is expected to grow assets by 20% with disbursement growth rising from 12% to 15-17% in FY '26.
- →Non-vehicle segments like Home Loans and LAP aim for ~30% asset growth, with 15-20% disbursement growth in Home Loans and 25-30% in LAP.
- →Credit costs are expected to improve, with a target reduction from 1.4% to 1.3% driven by Vehicle Finance and SME segments.
- →Profit Before Tax Return on Average Assets (PBT ROTA) guidance is conservatively around 3.4% to 3.5% for FY '26, with potential sustainability depending on business mix.
- →Operating expenses (OPEX) to maintain around 3-3.1% of assets, with moderate increase anticipated due to gold loan business launch.
- →Earnings growth is expected to be supported by margin improvement, better credit cost management, and opex control.
🏗️ Capital Expenditure Plans
- →The company has launched a gold loan business targeting select geographies with plans to scale to INR 2,000 crores AUM within 1 to 1.5 years, following a pilot in South and East regions.
- →There is ongoing investment to grow and groom five new businesses launched post-COVID, including gold loans and consumer durable lending, aiming to build them as big as vehicle finance, LAP, and home loans over 3-4 years.
- →Branch expansion is moderate, with LAP and home loans focusing more on improving productivity rather than aggressive branch addition this year; subsequent years may see 100 additional branches for LAP and HL.
- →Operating expenses related to new businesses have mostly been incurred, with some incremental opex expected from the gold loan business.
- →No explicit mention of other large capex or strategic investments was detailed in the transcript.
💰 Fundraising & Capital Structure
- →The transcript does not explicitly mention any current or planned new fundraising through debt or equity.
- →Discussion around cost of borrowings indicates a focus on managing existing borrowings and benefiting from rate cuts rather than raising new debt.
- →They plan to manage borrowings to reduce cost by 10-15 basis points through refinancing or negotiation with banks.
- →Some mention of assignment and securitization deals as a source of asset disposal and income, but no explicit reference to raising fresh debt or equity capital.
- →Capital Adequacy Ratio is strong at 19.75%, well above regulatory requirement of 15%, suggesting no immediate pressure to raise new capital.
- →Overall, no clear indications of new fundraising through either debt or equity in the near term.
📋 Order Book & Pipeline
Key Metrics
Frequently Asked Questions
What were Cholamandalam Investment & Finance Company Ltd Q4 FY25 results?
Overall AUM growth target is 20% to 25% per year, maintaining medium-term guidance. The company targets overall AUM growth of 20% to 25% annually in the medium term.
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 company has launched a gold loan business targeting select geographies with plans to scale to INR 2,000 crores AUM within 1 to 1.5 years, following a pilot in South and East regions.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.