Cholamandalam Finance: The company’s shares will remain in focus after a strong Q4FY26 performance prompted brokerages to turn constructive on the stock, citing steady growth and improving asset quality. The company reported a robust 30 per cent year-on-year rise in profit after tax to Rs 1,641 crore, supported by healthy AUM growth and margin expansion
Morgan Stanley on Cholamandalam Finance
Cholamandalam Finance Q4FY26
Cholamandalam Investment and Finance Company reported a strong operational performance for Q4FY26, with disbursements rising 25 per cent year-on-year to Rs 32,913 crore and 9.85 per cent sequentially. Assets under management (AUM) grew 21 per cent YoY to Rs 2.43 lakh crore, supported by broad-based growth across segments such as vehicle finance, loan against property and SME lending. Total income increased 20 per cent YoY to Rs 8,539 crore, reflecting healthy loan growth momentum.
The company’s net income rose 27 per cent YoY to Rs 4,789 crore, although finance costs also increased 12 per cent to Rs 3,749 crore amid continued rate pressures. Total expenses climbed 27 per cent YoY to ₹1,805 crore, while loan losses rose sharply by 35 per cent YoY to Rs 846 crore, indicating higher provisioning. Despite this, profitability remained strong with profit before tax up 25 per cent YoY to Rs 2,137 crore.
Cholamandalam reported a robust bottom-line performance, with profit after tax (PAT) rising 30 per cent YoY to Rs 1,641 crore and 27 per cent sequentially. Margins improved, with net interest margin (NIM) expanding to 8.40 per cent from 8.00 per cent in Q4FY25, while return on assets (ROA) rose to 2.9 per cent. Cost-to-income ratio improved to 37.7 per cent, highlighting better operating efficiency despite elevated cost pressures.
Cholamandalam Investment Dividend
The company’s board recommended a final dividend of Rs 0.70 per share for FY26. This is in addition to the interim dividend of Rs 1.30 per share declared earlier in January 2026, taking the total dividend payout for the financial year to Rs 2.00 per share.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
