Highlights

• Cholamandalam Investment and Finance has received a Buy rating from Jefferies, accompanied by a target price of ₹1,980.
• The company reported AUM of ₹2,14,906 crore in recent half, marking a 21% year-on-year increase.
• Quarterly profit after tax reached ₹1,155 crore, continuing the company’s double-digit annual growth trend.

Cholamandalam Investment and Finance Company Ltd (NSE:CHOLAFIN) has drawn fresh attention from the market after Jefferies assigned the stock a Buy rating along with a price target of ₹1,980. The revised stance might have come as the company announced its audited financial results for the quarter and half year ended 30 September 2025, highlighting continued expansion across business segments and sustained profitability.

The company’s operations continue to scale across vehicle finance, property loans, home loans, SME lending and other segments, supported by sizeable disbursements and growth in assets under management.

AUM Expands 21% as Disbursements Maintain Upward Trajectory

For Q2 FY26, aggregate disbursements reached ₹24,442 crore, taking total disbursements for H1 FY26 to ₹48,767 crore. Assets under management rose to ₹2,14,906 crore as of 30 September 2025, up from ₹1,77,426 crore a year earlier.

Growth was broad-based across major lending segments. Vehicle Finance AUM increased to ₹1,07,568 crore, supported by quarterly disbursements of ₹13,539 crore. Loan Against Property business expanded to ₹46,302 crore in AUM, while home loans rose to ₹20,405 crore. SME lending grew to ₹7,544 crore, and Secured Business and Personal Loans saw the fastest rise, reaching ₹2,932 crore—an increase of 57% year-on-year.

Income and Profit Continue to Rise in Q2 and H1 FY26

Cholamandalam reported net income of ₹4,075 crore for the quarter, a rise of 26% over the previous year. For the half year, net income stood at ₹7,939 crore, up 27% year-on-year. Profit after tax for Q2 reached ₹1,155 crore, while H1 PAT totalled ₹2,291 crore, both reflecting 20% annual growth.

The company’s consolidated profit before tax stood at ₹1,565 crore for Q2, compared with ₹1,304 crore in the corresponding quarter last year. For the half year, consolidated PBT grew to ₹3,096 crore from ₹2,579 crore a year earlier.

Liquidity, Asset Quality and Capital Adequacy Remain Aligned with Regulatory Expectations

Cholamandalam reported a liquidity position of ₹17,516 crore, including cash, high-quality liquid assets and undrawn sanctioned lines. Asset quality metrics remained within manageable ranges, with Stage 3 assets at 3.35% and GNPA at 4.57% as of September 2025.

The company’s capital adequacy ratio stood at 20%, above the regulatory requirement of 15%, with Tier-I capital at 14.59% and CET-I at 13.93%.

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