How does Q1 profit growth compare with the company's trailing growth rate?

Q1 PAT growth of 46% YoY far exceeds the trailing 12-month PAT growth of 30.6% (as of the prior period), indicating acceleration in earnings.

Is the rise in gross stage 3 a concern?

Gross stage 3 inched up 24 bps to 3.29% from 3.05% in March. While still low in absolute terms, the direction is worth monitoring given the strong loan growth.

Why is the board renewing the ₹55,000 cr NCD limit?

This is an annual renewal of a borrowing limit first approved last year. It does not represent new fundraising but gives the company flexibility to issue debentures as needed.

What drove the AUM growth of 23%?

Disbursements expanded across all segments: vehicle finance, LAP, home loans, SME, and gold loans. Gold loan AUM specifically reached ₹2,143 crore through 171 dedicated branches.

Earnings · Finance - NBFC · Mega cap

Cholamandalam Q1 profit jumps 46% but stage 3 edges up

Standalone PAT hits ₹1,654 cr, AUM crosses ₹2.54 lakh cr. Gross stage 3 rises to 3.29% from 3.05% in March. Board renews ₹55,000 cr NCD limit, a routine annual approval.

— 2 earlier stories on Cholamandalam Investment and Finance Company Ltd. →

CHOLAFIN By Tipsheet Editorial 28 Jul 2026 · 2:56 PM IST Verify on BSE · NSE

Mkt cap₹1.53 lakh cr

P/E29.32×

ROE18.01%

Debt / eq.7.40

Div yld0.04%

₹1,654 cr Q1 standalone profit after tax, up 46% YoY

What's new

PAT surged 46% YoY to ₹1,654 cr; AUM up 23% to ₹2,54,392 cr
Gross stage 3 assets increased to 3.29% from 3.05% in March
Board renewed approval for up to ₹55,000 cr NCDs on private placement

Why this matters

Cholamandalam continues to deliver double-digit AUM growth and strong profit expansion, but a 24-bps sequential rise in gross stage 3 bears watching. The NCD limit renewal is a standard housekeeping item, not a new capital raise. Capital adequacy at 19.81% remains comfortable.

What we're watching

Whether stage 3 stabilises or trends higher in coming quarters
Gold loan AUM growth trajectory - ₹2,143 cr via 171 branches
Any incremental NCD issuances under the renewed ₹55,000 cr limit

The full read

Cholamandalam posted a 46% year-on-year jump in standalone profit at ₹1,654 crore for the June quarter, driven by 23% AUM growth to ₹2,54,392 crore. Every loan bucket (vehicle, LAP, home, SME, and gold) expanded. Gold loan AUM alone touched ₹2,143 crore across 171 branches. The board also renewed the nod to raise up to ₹55,000 crore via NCDs — a routine annual rollover, not a fresh capital plan. The one blemish: gross stage 3 assets rose to 3.29% from 3.05% in March, a 24-bp creep. Capital adequacy at 19.81% remains well above requirements. Strong earnings, but asset quality is the variable to track.

Questions answered

How does Q1 profit growth compare with the company's trailing growth rate?: Q1 PAT growth of 46% YoY far exceeds the trailing 12-month PAT growth of 30.6% (as of the prior period), indicating acceleration in earnings.
Is the rise in gross stage 3 a concern?: Gross stage 3 inched up 24 bps to 3.29% from 3.05% in March. While still low in absolute terms, the direction is worth monitoring given the strong loan growth.
Why is the board renewing the ₹55,000 cr NCD limit?: This is an annual renewal of a borrowing limit first approved last year. It does not represent new fundraising but gives the company flexibility to issue debentures as needed.
What drove the AUM growth of 23%?: Disbursements expanded across all segments: vehicle finance, LAP, home loans, SME, and gold loans. Gold loan AUM specifically reached ₹2,143 crore through 171 dedicated branches.

Mentioned: ₹1,654 cr PAT · ₹2,54,392 cr AUM · ₹55,000 cr NCD approval

Primary source BSE · NSE

An independent reading of the company's own disclosure — the primary filing above is the final word.

Story so far

All notes on CHOLAFIN →

28 Jul 2026 · 2:56 PM IST Cholamandalam Q1 profit jumps 46% but stage 3 edges up
today Cholamandalam Q1 profit jumps 46% but liquidity disclosure raises questions
today Cholamandalam Q1 profit soars 46%, AUM crosses ₹2,54,392 cr