Cholamandalam Investment and Finance Company Limited (NSE:CHOLAFIN) reported unaudited standalone profit for the quarter ended 30 June 2026 of Rs 1,653.59 crores, up 45.5 percent year-on-year from Rs 1,135.91 crores in the corresponding quarter of FY26. The board meeting held on 28 July 2026 also approved issuance of non-convertible debentures (NCDs) aggregating Rs 55,000 crores on a private placement basis.
Key Highlights
- Standalone profit for Q1 FY27 stood at Rs 1,653.59 crores, representing 45.5 percent year-on-year growth compared to Rs 1,135.91 crores in Q1 FY26.
- Total revenue from operations increased to Rs 8,333.38 crores in Q1 FY27 from Rs 7,245.92 crores in Q1 FY26, a rise of 15.0 percent year-on-year.
- Interest income grew to Rs 8,039.92 crores in Q1 FY27 from Rs 6,650.07 crores in Q1 FY26, marking an increase of 20.9 percent year-on-year.
- Board approved issuance of secured and/or unsecured non-convertible debentures aggregating Rs 55,000 crores in one or more tranches via private placement.
- Consolidated profit for Q1 FY27 was Rs 1,656.22 crores compared to Rs 1,137.83 crores in Q1 FY26, a growth of 45.5 percent year-on-year.
- Earnings per share (basic) on standalone basis was Rs 19.40 per share for Q1 FY27 versus Rs 13.51 per share in Q1 FY26.
- Finance costs increased to Rs 4,003.14 crores in Q1 FY27 from Rs 3,466.25 crores in Q1 FY26, reflecting higher borrowing costs.
About the Company
Cholamandalam Investment and Finance Company Limited (NSE:CHOLAFIN, BSE:511243) is a non-banking financial company (NBFC) incorporated in 1978 and headquartered in Chennai, Tamil Nadu. The company engages in vehicle financing, home loans, personal loans, two-wheeler financing, and commercial vehicle financing. Its subsidiary entities include Cholamandalam Securities Limited and Cholamandalam Leasing Limited (formerly Cholamandalam Home Finance Limited). The company also has a joint venture with PayswiffTechnologies Private Limited and an associate relationship with Vishvakarma Payments Private Limited, in addition to Chola Foundation, a jointly controlled non-profit entity. The company operates across India with a diversified financing portfolio serving retail and commercial customers.
Announcement in Detail
The board of directors meeting convened on 28 July 2026 approved the unaudited standalone and consolidated financial results of the company for the quarter ended 30 June 2026. On a standalone basis, the company reported profit before tax (PBT) of Rs 2,220.49 crores in Q1 FY27 compared to Rs 1,529.64 crores in Q1 FY26. After deducting tax expense of Rs 566.90 crores, profit after tax was Rs 1,653.59 crores. The consolidated profit before tax was Rs 2,223.56 crores with profit after tax of Rs 1,656.22 crores, and the profit attributable to owners of the company was also Rs 1,656.22 crores with no non-controlling interests.
Total comprehensive income (net of tax) on a standalone basis was Rs 1,628.31 crores for Q1 FY27 compared to Rs 1,056.11 crores in Q1 FY26. The consolidated total comprehensive income net of tax was Rs 1,630.94 crores. Basic earnings per share on a standalone basis was Rs 19.40 per equity share of face value Rs 2 in Q1 FY27, while diluted earnings per share was Rs 19.36 per share. The financial results have been subjected to limited review by joint statutory auditors M/s. B.K. Khare & Co. and M/s. KKC & Associates LLP in compliance with Regulation 33 and 52 of the SEBI Listing Obligations and Disclosure Requirements Regulations 2015.
The board also approved the issuance of secured and/or unsecured non-convertible debentures (NCDs) aggregating Rs 55,000 crores in one or more tranches on a private placement basis in accordance with applicable laws. The company stated that required disclosures under Schedule III of SEBI Listing Regulations will be provided at the time of issuance or allotment of securities. This capital raising initiative represents a significant fund mobilisation effort to support the company's lending operations and growth trajectory.
Impact on Investors
Investors will note that the company demonstrated strong profitability growth in Q1 FY27, with profit after tax increasing 45.5 percent year-on-year to Rs 1,653.59 crores. Revenue from operations grew 15.0 percent year-on-year to Rs 8,333.38 crores, driven primarily by interest income which rose 20.9 percent. Basic earnings per share increased to Rs 19.40 from Rs 13.51 year-on-year, reflecting improved bottom-line performance. The filing shows that impairment of financial instruments (net) was Rs 921.85 crores in Q1 FY27 compared to Rs 882.10 crores in the prior year quarter, indicating the company continues to make provisions for credit risk. Employee benefits expense increased to Rs 1,139.78 crores from Rs 924.30 crores year-on-year.
The approval for issuance of Rs 55,000 crores of non-convertible debentures via private placement represents a substantial capital mobilisation. Shareholders should observe that this debt issuance will increase the company's total borrowings and leverage ratios, which may affect return on equity metrics. The disclosed terms indicate that allotment and pricing details will be provided separately at the time of issuance. Investors should note that the timing, tranching, and pricing of this debt issuance remain subject to market conditions and regulatory approvals. The financial results demonstrate operational momentum, but the enlarged debt funding base will require careful monitoring of asset quality and credit growth metrics to ensure efficient deployment of capital.
Sector / Market Context
The non-banking financial company (NBFC) sector in India has grown substantially as an alternative source of credit to bank lending. According to regulatory data, NBFCs play a critical role in financing segments including vehicle financing, home loans, and small and medium enterprise lending. Cholamandalam's diversified portfolio spanning two-wheeler, four-wheeler, commercial vehicle, and home financing reflects the sector's breadth of lending opportunities across consumer and commercial segments. The company's interest income growth of 20.9 percent year-on-year in Q1 FY27 demonstrates strong credit disbursement momentum, consistent with continued demand for retail and commercial credit in the Indian economy.
The approval for large-scale debt issuance through NCDs is typical of major NBFCs that fund their lending operations through market borrowings in addition to bank credit. The financial sector's growth has been supported by structural factors including rising income levels, increased access to credit across tier-2 and tier-3 centres, and regulatory focus on financial inclusion. NBFCs continue to manage asset quality through impairment provisions and loan transfers to asset reconstruction companies (ARCs), as evidenced by the company's loan transfer disclosures showing transfer of loan accounts and stressed assets during the period.