Net interest income (NII) rose 25% year on year to ₹4,356.1 crore, from ₹3,486.3 crore a year earlier. Disbursements increased 21% to ₹16,503 crore in the first quarter of FY27, while assets under management (AUM) grew 19% from the year-ago period.
Loan losses improved to 2% in the June quarter from 2.2% in Q1 FY26, indicating an improvement in asset quality, according to the company’s exchange filing.
Commercial vehicle demand remains strong
Demand across commercial vehicles remained firm during the quarter. The heavy commercial vehicle (HCV) segment grew 13% in Q1 FY27, recording its highest-ever first-quarter sales. The company attributed the growth to healthy freight activity, sustained infrastructure spending and continued replacement demand.
The light commercial vehicle (LCV) segment grew 18%, also registering its highest-ever Q1 sales, supported by e-commerce expansion, last-mile connectivity and replacement demand.
Sales in the small commercial vehicle (SCV) segment rose 31% during the quarter, with the company expecting the trend to continue in the coming months.
Passenger vehicles, two-wheelers and tractors gain momentum
The passenger vehicle segment, comprising cars and multi-utility vehicles, grew 26% in Q1 FY27, marking its best-ever quarterly performance. The company attributed the growth to new model launches and the sustained impact of revised GST rates.
The two-wheeler industry grew 20% during the quarter, helped by improved affordability, healthy rural demand and replacement purchases. The company expects the segment to see a positive festive season in the coming quarters.The tractor industry also recorded 19% growth in Q1 FY27, posting its highest quarterly sales in recent years. Growth was driven by positive rural sentiment and steady farm cash flows. The company expects momentum to continue, subject to normal rainfall and increased government support for the farm sector.
The group also said it had assessed the impact of the new labour codes, notified by the Government of India with effect from November 21, 2025, based on the information available.
In its consolidated financial results, the revised definition of wages resulted in an ₹57.40 crore increase in employee benefits expense for the year ended March 2026.
Shares of Cholamandalam Financial Holdings were down 1.91% at ₹1,615 apiece on the NSE at 2:13 pm on Friday. The stock has gained 2.05% over the past month but remains down 13.81% year to date.
