Highlights

• CHOLAFIN received buy ratings from Motilal Oswal Securities and Jefferies with target prices near INR 2,000.
• In FY25, total AUM crossed INR 2.14 lakh crore with encouraging year-on-year growth.
• Net income and profit after tax recorded increases across both quarterly and half-yearly periods.

Cholamandalam Investment and Finance Company Limited ((NSE:CHOLAFIN)) has received a positive endorsement from leading brokerage houses, with Motilal Oswal Securities Ltd. and Jefferies assigning a buy rating on the company’s stock. Motilal Oswal has set a target price of INR 2,000, while Jefferies has pegged its target at INR 1,980. The positive analyst stance places CIFCL firmly in focus amid sustained interest from institutional and retail investors.

The buy calls from Motilal Oswal Securities and Jefferies signal a constructive view on CIFCL’s prospects. These recommendations might follow the announcement of CIFCL’s audited financial results for the quarter and half year ended 30 September 2025, which were approved by the Board of Directors on 6 November 2025. The results highlight the scale and breadth of the company’s lending franchise across multiple segments.

Growth Across Financial Metrics

For the second quarter of FY 2025–26, CIFCL reported net income of INR 4,075 crore, marking a year-on-year growth of 26 percent. Net income for the first half of the financial year stood at INR 7,939 crore, up 27 percent compared to the same period last year. Profit after tax reached INR 1,155 crore for the quarter and INR 2,291 crore for the half year, reflecting a 20 percent year-on-year increase in both periods.

Total assets under management rose to INR 2,14,906 crore as of 30 September 2025, registering a 21 percent growth compared to the previous year. Aggregate disbursements during the second quarter amounted to INR 24,442 crore, while first-half disbursements stood at INR 48,767 crore.

Segmental Performance Remains Robust

Vehicle Finance continued to be a major contributor, with disbursements of INR 13,539 crore in the quarter and INR 27,186 crore in the first half. The segment’s AUM increased to INR 1,07,568 crore, up 17 percent year on year. The Loan Against Property business recorded disbursements of INR 4,630 crore in the quarter and INR 9,336 crore in the half year, with AUM growing 33 percent to INR 46,302 crore.

Home loans, SME loans, secured business and personal loans, and consumer and small enterprise loans also posted healthy activity levels, collectively supporting CIFCL’s diversified portfolio and growth profile.

Liquidity and Returns Support Market View

CIFCL maintained a favourable liquidity position with cash balances of INR 16,991 crore as of the end of September 2025, and total liquidity of INR 17,516 crore including undrawn lines. Profit before tax grew 20 percent year on year for both the quarter and the half year, while return on equity stood at 18.11 percent for Q2 and 18.47 percent for H1 FY 2025–26.

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