Cholamandalam Finance Q1 Profit Jumps 46% on Strong Loan Growth and Higher Interest Income

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 $CHOLAFIN reported a strong first quarter for FY27, with net profit rising 45.7% year-on-year to ₹1,654 crore, driven by robust loan growth and higher interest income. Total income increased 22% to ₹8,933 crore, reflecting healthy expansion across its lending businesses. The company's Net Interest Income (NII) grew 26.8% to ₹4,037 crore, supported by continued growth in its loan portfolio. Assets Under Management (AUM) rose 23% year-on-year to around ₹2.5 lakh crore, led by strong performance in vehicle finance, home loans, loan against property, SME lending and consumer finance. During the quarter, the board also approved raising up to ₹55,000 crore through non-convertible debentures (NCDs) via private placement to support future funding requirements and business expansion. Asset quality remained broadly stable despite a slight increase in stressed assets. The Gross Stage 3 asset ratio stood at 3.29%, while the Net Stage 3 ratio was 1.81%. The company continued to maintain healthy business momentum across its diversified lending segments. Industry & Economic Impact: The results highlight the continued strength of India's NBFC sector, supported by sustained demand for vehicle, housing, SME and consumer loans. Growth in lending and interest income indicates healthy credit demand across the economy. From an economic perspective, expanding credit availability supports consumption, small businesses, housing and commercial vehicle purchases. Continued access to funding through NCDs will help finance future loan growth, contributing to investment, employment and overall economic activity. Source: NDTV Profit No Recommendations