Cholamandalam Investment and Finance Company Limited (CHOLAFIN)

Financial Services · Finance · NSE · Updated 13 August 2026

By StockFin Research Team • AI-Assisted Analysis • Source: BSE/NSE Filings

₹1,917.6 ↑ 31.3% (1Y)

🎯 Key Takeaways

Cholamandalam Investment and Finance Company is in a growth phase driven by expanding disbursements and AUM, supported by improving asset quality and margins. Management is executing a capital-light expansion strategy with strong credit discipline, targeting 23% AUM growth and margin expansion in FY27.
Revenue grew 7.6% QoQ to ₹6,733 in Q3FY25.
⚠️ Macroeconomic sensitivity to repo rate hikes, which could pressure credit costs and demand.

Market Cap

₹1.32 L Cr

P/E Ratio

31.9

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

Cholamandalam Investment and Finance Company is in a growth phase driven by expanding disbursements and AUM, supported by improving asset quality and margins. Management is executing a capital-light expansion strategy with strong credit discipline, targeting 23% AUM growth and margin expansion in FY27. The company is leveraging robust financial performance and strategic fund-raising to scale its non-banking financial services franchise.

📰 What's Happening

In Q1 FY27, disbursements grew 22% YoY to INR29,612 crores and AUM expanded 23% to INR2,54,392 crores, as highlighted in the August 4, 2026 financial results filing. Management cited improved asset quality with slippage at 0.7% and net credit cost declining to 1.5% from 1.8% YoY. CCD conversions of INR430 crores are expected in October 2026. The Board approved a ₹55,000 crore NCD issuance in July 2026 to fund growth, with full utilization planned. Employee stock option exercises were also recently executed, involving 9,910 and 71,465 shares in July 2026 filings.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY23	Q1FY24	Q2FY24	Q3FY24	Q4FY24	Q1FY25	Q2FY25	Q3FY25
Revenue	3,741	4,082	4,623	5,007	5,428	5,812	6,255	6,733
Operating Profit	2,932	3,001	3,308	3,643	4,083	4,130	4,425	4,799
OPM %	75.9%	71.3%	70.0%	71.8%	73.9%	70.3%	69.7%	69.7%
Net Profit	855	710	773	872	1,065	947	968	1,088
EPS	₹10.40	₹8.64	₹9.40	₹10.40	₹12.68	₹11.27	₹11.52	₹12.95

Revenue and operating profit have shown consistent sequential growth over the past eight quarters, with operating margins holding firm above 69% despite macro volatility. Net profit and EPS trends reflect steady profitability, supported by high operating leverage. The company's ability to expand AUM while maintaining stable credit costs and improving ROA underscores operational efficiency. These trends align with management's narrative of scalable growth supported by disciplined underwriting and product mix optimization.

🔮 Management Outlook & What's Next

Management expects 23% AUM growth and margin expansion in FY27, driven by NIM improvement and favorable product mix, as stated in the August 4, 2026 filing. While no formal forward guidance was provided beyond this, the company emphasized confidence in execution amid macro risks. CCD conversions and NCD fundraising are part of ongoing capital management, with no indication of deviation from stated growth objectives.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — Finance

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
Bajaj Finance Limited	5.67 L Cr	30.9	22.4%	18.6%	1.37
Bajaj Finserv Limited	2.77 L Cr	14.4	—	13.4%	—
Shriram Finance Limited	2.21 L Cr	23.3	—	—	—
Jio Financial Services Limited	1.54 L Cr	92.1	—	—	—
Power Finance Corporation Limited	1.47 L Cr	5.0	—	—	—
Muthoot Finance Limited	1.33 L Cr	26.6	—	—	—
Cholamandalam Investment and Finance Company Limited	1.32 L Cr	31.9	—	—	—
Tata Capital Limited	1.31 L Cr	—	—	—	—
Indian Railway Finance Corporation Limited	1.29 L Cr	18.4	—	—	—
Bajaj Holdings & Investment Limited	1.15 L Cr	15.3	—	—	—

🔗 Peer Stock Analyses

BAJFINANCE BAJAJFINSV SHRIRAMFIN JIOFIN PFC

⚠️ Risk Factors

1. Macroeconomic sensitivity to repo rate hikes, which could pressure credit costs and demand. 2. Monsoon-related disruptions affecting rural disbursements, given the company's exposure to agri-dependent segments. 3. Rising competitive intensity in the NBFC space could pressure pricing and margins. 4. Execution risk around large-scale NCD fundraising and utilization without compromising credit quality.

📋 Recent Filings

🧠 Analyst's Read

Cholamandalam is executing a disciplined growth strategy with improving asset quality and strong capital generation, supported by strategic fund-raising. The key near-term watchpoints are monsoon impact on rural demand and the successful deployment of NCD proceeds without credit deterioration.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-08-13.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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