Cholamandalam Investment and Finance Company Ltd (CHOLAFIN) Q2FY26 Concall Summary - Sep-2025 Qtr
Performance Overview
- The company demonstrated resilient performance with aggregate disbursements of INR 24,442 crores, leading to a 21% year-on-year growth in Assets Under Management (AUM), despite facing transitional challenges from GST rate changes and procedural issues in key markets.
- Asset quality remained broadly stable, with a sequential improvement in credit costs by 10 bps from Q1 to Q2 FY26. Management believes credit losses, particularly in the Consumer and Small Enterprise Loan (CSEL) segment, have peaked and expects moderation going forward.
- Profitability metrics were healthy, with Profit Before Tax (PBT) growing 20% year-on-year to INR 1,561 crores. The company maintained a strong PBT ROA of 3% and an ROE of 18.11% for the quarter.
- The company holds a robust liquidity position with INR 17,516 crores in total liquid assets and a comfortable Capital Adequacy Ratio (CAR) of 20%, positioning it well for future growth.
- Management expressed a bullish outlook for the second half of the fiscal year, anticipating stronger disbursement growth and improved profitability, driven by the positive impact of GST rate rationalization, festive season demand, and the launch of the new gold loan business.
Financial Metrics
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Operating Performance / Business Segments
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Key Discussions & Insights
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Outlook and Guidance
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Challenges / Concerns
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Industry / Competitive Landscape
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Overall Summary
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