Cholamandalam Investment and Finance Company reported a 46% rise in quarterly profit to ₹1,654 crore, supported by strong loan growth. The company’s assets under management surpassed ₹2.5 trillion, while the board approved a ₹55,000 crore fundraising plan via debentures. Despite the profit growth, investors are monitoring a slight rise in gross non-performing assets to 4.5%.
Detailed Coverage
Cholamandalam Investment and Finance Company Ltd (CIFCL) has reported a strong start to the current financial year. For the quarter ending June 2026, the company posted a net profit of ₹1,654 crore, reflecting a 46% increase compared to the same period last year. This performance was supported by a 28% rise in net income, which reached ₹4,930 crore.
Asset Growth and Fundraising Plans
The company’s loan portfolio, measured by Assets Under Management (AUM), has crossed the ₹2.5 trillion mark, reaching ₹2,54,392 crore by the end of June 2026. This represents a 23% year-on-year growth. To support this ongoing business expansion, the company’s board of directors has approved a proposal to raise up to ₹55,000 crore through the issuance of non-convertible debentures. These funds are planned to be raised in multiple tranches through private placements.
Lending Performance and Portfolio Mix
Disbursement activity remained robust throughout the quarter, with total loans issued rising 22% to ₹29,612 crore. Vehicle finance continues to be the largest contributor, accounting for 56% of total disbursements. Within this segment, lending for heavy commercial vehicles and passenger vehicles drove a 21% increase in disbursements to ₹16,503 crore. The company also reported progress in its newer segments, with MSME loans making up 24% of the quarterly lending, and its specialized gold loan business growing its AUM to ₹2,143 crore across 171 dedicated branches.
Asset Quality and Capital Position
While the company reported growth in net interest margins, which improved to 8.2% from 7.8% a year ago, investors may monitor trends in asset quality. Gross non-performing assets, which represent the portion of loans where repayment is delayed or uncertain, rose to 4.50% in June 2026 from 4.36% in March 2026. Net non-performing assets similarly increased to 2.95% from 2.87% in the previous quarter. Despite this, the company maintains a capital adequacy ratio of 19.81%, which remains significantly higher than the 15% minimum required by the Reserve Bank of India, providing a buffer against potential credit risks.
On July 28, 2026, the company’s shares closed at ₹1,766.80 on the BSE, declining 1% during the trading session. Moving forward, the key factor for investors to track will be the company’s ability to manage its asset quality as it continues to expand its loan book, particularly within the MSME and consumer finance segments, alongside the timing and cost of its planned fundraising activities.