Cholamandalam Investment and Finance Company Ltd (NSE: CHOLAFIN) The company reported a Profit After Tax of ₹1,288 Crore for the quarter ended December 31, 2025. Total Assets Under Management grew by 20% year-over-year, supported by strong performance across vehicle finance and loan-against-property segments.
On January 30, 2026, the Board of Directors of Cholamandalam Investment and Finance Company Limited approved the unaudited financial results for the quarter and nine months ended December 31, 2025. The company reported a Profit After Tax (PAT) of ₹1,288 Crore for Q3 FY26, a 19% increase over the previous year. Total Assets Under Management (AUM) rose 20% year-over-year to reach ₹2,27,770 Crore.
Company Profile and Business Model
Incorporated in 1978, the company serves as the financial services arm of the Murugappa Group. It began as an equipment financing firm and has transitioned into a comprehensive provider of vehicle finance, home loans, SME loans, and gold loans. The company currently operates through 2,449 touch points across India. It serves a customer base of over 43 lakh clients.
Quarterly Results and Segment Highlights
Net Income for Q3 FY26 stood at ₹4,342 Crore, reflecting a 23% year-over-year growth. Total Income for the quarter was ₹7,985 Crore, up 17% from the same period last year. Vehicle Finance remains the largest segment with an AUM of ₹1,12,937 Crore, growing 17% year-over-year. Loan Against Property (LAP) disbursements reached ₹5,285 Crore in Q3, with the segment’s AUM growing 31% to ₹49,162 Crore. Home Loan AUM increased by 27% year-over-year to ₹21,691 Crore. The SME Loan business grew its AUM by 33% to ₹8,338 Crore. Secured Business and Personal Loans (SBPL) recorded 52% AUM growth, reaching ₹3,221 Crore. Consumer and Small Enterprise Loans (CSEL) AUM was ₹14,393 Crore. The Gold Loans segment continues to scale and currently operates via 118 dedicated branches.
Full Year and Year-over-Year Context
For the nine months ended December 31, 2025, Net Income rose 25% to ₹12,281 Crore. PAT for the same nine-month period was ₹3,579 Crore, representing a 20% increase. Profit Before Tax (PBT) for the nine-month period grew 20% to ₹4,823 Crore. Total disbursements for the nine months reached ₹78,729 Crore, a 6% increase compared to the previous year.
Asset Quality and Regulatory Milestones
Stage 3 assets, representing dues over 90 days, stood at 3.36% as of December 2025. The Gross Non-Performing Assets (GNPA) ratio per RBI norms was 4.63%. Net NPA (NNPA) per RBI norms was 3.13%. The company’s Capital Adequacy Ratio (CAR) was 19.16%, well above the regulatory requirement of 15%. Tier-I Capital stood at 14.21%. During the quarter, Compulsorily Convertible Debentures (CCDs) worth ₹307 Crore were converted into equity. A further ₹1,063 Crore of CCDs were converted in January 2026, which is expected to strengthen Tier-I Capital by March 2026.
Financial Position and Strategic Analysis
The company maintains a strong liquidity position with ₹18,379 Crore in cash balances as of December 2025. Total liquidity, including undrawn sanctioned lines, reached ₹18,857 Crore. The Asset Liability Management (ALM) profile shows no negative cumulative mismatches across any time buckets. The Return on Equity (ROE) for Q3 FY26 was 19.11%. Strategic expansion is evidenced by the steady scaling of the Gold Loan business and the conversion of CCDs to equity to support growth.
Interim Dividend and Outlook
The Board of Directors approved an interim dividend of 65%, amounting to ₹1.30 per equity share for the year ending March 31, 2026.