Cholamandalam Q1 profit soars 46%, AUM crosses ₹2,54,392 cr
Profit at ₹1,654 cr on 23% AUM growth as vehicle finance share shrinks. Board approves ₹55,000-crore NCD programme for growth funding.
— 2 earlier stories on Cholamandalam Investment and Finance Company Ltd. →What's new
- PAT jumps 46% YoY to ₹1,654 cr; total income up 22%
- AUM grows 23% to ₹2,54,392 cr; vehicle finance share slides to ~50%
- Board approves ₹55,000 cr NCD programme on private placement
- Gross stage 3 assets edge up to 3.29% from 3.05% in March
Why this matters
Cholamandalam's diversification out of pure auto finance is paying off, with LAP and home loans posting strong growth. The ₹55,000 crore NCD programme arms the balance sheet for this shift. But the rise in GNPA to 3.29% (even if guided) reminds that credit costs haven't peaked yet.
What we're watching
- Whether credit costs moderate as management expects through FY27
- How quickly the NCD programme is tapped and at what rates
- If vehicle finance AUM can maintain mid-teens growth despite the mix shift
The full read
Cholamandalam delivered a 46% profit surge to ₹1,654 crore in Q1, driven by 23% AUM growth and a 28% rise in net income. The shift away from vehicle finance is becoming structural: LAP and home loans each grew faster than auto, pushing vehicle finance's share of the book toward 50%. The board backed this pivot with a ₹55,000-crore NCD programme, giving the balance sheet room to keep expanding. The one blemish: gross stage 3 assets crept up to 3.29% from 3.05% in March. Management had guided for this, but it is a reminder that credit costs have not troughed. If the rest of the year plays out as guided (AUM growth of 20-23% and moderating credit costs) the diversification story stays intact. The ₹55,000-crore NCD programme ensures funding won't be the bottleneck.
Questions answered
- What drove the 46% profit jump?
- Net income rose 28% on 22% total income growth, with AUM expanding 23%. The profit growth outpaced income growth, indicating operating leverage.
- How is the loan book mix changing?
- Vehicle finance AUM grew 19% to ₹1,24,132 crore, but its share of total AUM has fallen to about 50% as LAP (up 23%) and home loans (up 22%) take larger shares.
- Why approve a ₹55,000 crore NCD programme now?
- The NCD raises debt headroom to fund the expanding loan book. For a large NBFC, such programme renewals are routine but signal continued growth appetite.
- Is asset quality deteriorating?
- Gross stage 3 rose to 3.29% from 3.05% in March, a mild increase the company had flagged. Provisioning coverage remains adequate, and management expects credit costs to moderate through the year.
Story so far
All notes on CHOLAFIN →- 28 Jul 2026 · 2:44 PM IST Cholamandalam Q1 profit soars 46%, AUM crosses ₹2,54,392 cr
- today Cholamandalam Q1 profit jumps 46% but liquidity disclosure raises questions
- today Cholamandalam Q1 profit jumps 46% but stage 3 edges up