Cholamandalam Investment and Finance Company Q2 FY27: PAT ₹1,020 Cr & Rev ₹29,612 Cr

Investor Takeaways

Disbursements grew 22% YoY to ₹29,612 crores in Q1 FY27

AUM expanded 23% YoY to ₹2,54,392 crores in Q1 FY27

Net credit cost declined to 1.5% from 1.8% YoY

ROA improved to 3.7% in Q1 FY27

⚠️ Repo rate hikes and monsoon impacts pose macro risks

Overall Tone: Neutral based on the numbers only.

Key Financial Highlights

Metric	Value	YoY Change
Revenue	₹29,612 Cr	22%
Net Profit	₹1,020 Cr	Not available
EBITDA	Not available	Not available
EPS	Not available	Not available
OPM	Not available	Not available

What Changed

The filing indicates improved operational efficiency and asset quality in Q1 FY27. Net credit cost decreased to 1.5% from 1.8% YoY, reflecting better cost management on loan portfolios. Return on Assets (ROA) rose to 3.7%, up from previous periods, signaling enhanced asset utilization. The slippage ratio remained stable at 0.7%, indicating consistent asset quality with no significant deterioration. CCD conversions reached ₹1,570 crores, with ₹430 crores expected in October 2026, supporting liquidity and reinvestment capacity. Management projects 23% AUM growth and margin expansion driven by Net Interest Margin (NIM) improvement and favorable product mix, though these gains are contingent on macroeconomic stability.

Peer Comparison

Company	P/E	ROE	ROCE	Market Cap (₹ Cr)
CHOLAFIN	31.94	Not available	Not available	1,31,794.92
HDFCBANK	15.5	14.3%	24.4%	11,81,607.38
ICICIBANK	15.47	N/A%	N/A%	8,92,242
SBIN	10.44	N/A%	N/A%	8,89,093.09

This company trades at a premium valuation relative to HDFC Bank, with a higher P/E ratio of 31.94 compared to 15.5, though peer ROE and ROCE data are not fully comparable due to reporting differences.

Risks & Concerns

Repo rate hikes could increase funding costs and pressure margins

Monsoon impacts may affect economic activity and borrower repayment capacity

No specific credit deterioration or regulatory risks mentioned in the filing

Quarterly Trend

Quarter	Revenue (₹ Cr)	Net Profit (₹ Cr)	OPM%
Q3FY25	6,732.98	1,088.21	69.73
Q2FY25	6,255.12	967.8	69.67
Q1FY25	5,812.31	947.15	70.29
Q4FY24	5,427.56	1,065.23	73.9

Note: The provided data reflects historical quarterly performance up to Q4FY24. The current filing focuses on Q1 FY27, which is not included in the quarterly trend table as it represents a forward-looking period not covered by past actuals in the provided dataset.

Conclusion

The company demonstrates strong top-line growth and improving profitability metrics in Q1 FY27, with disciplined cost control and enhanced asset quality. However, valuation appears elevated relative to peers, and macroeconomic headwinds remain unmitigated. Investors should monitor credit cost trends and monsoon-dependent economic indicators for forward guidance validation.

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About Cholamandalam Investment and Finance Company Limited (CHOLAFIN)

Financial Services · Finance · Listed on NSE

Market Cap: ₹1,31,794.92 Cr P/E: 31.9

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Source: Stock Announcements. Analysis by StockFin.ai. For informational purposes only — not investment advice.

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