Cholamandalam Investment and Finance Company

“As of now, we are confident with the second half number better than first half. That's what is normally we have seen in the past. And we don't want to change our target. Whatever target we have given in the past, we will hold it as it is.”

“As a result, despite some pressure on funding costs and yields, we believe the overall profitability profile remains healthy, and ROTA should continue to be better than last year.”

“No, let's hold it. Let's see them and track thetraction on these new businesses and let them settle down and then we will change.”

“We hold our commitment whatever we have given in terms of growth.”

“However, we do not believe it is prudent to raise our guidance at this stage. Having said that, given the seasonal strength and historical performance of Q3 and Q4, there is potential for outcomes to be better than our current expectations.”

“Vehicle finance disbursements grew by 31% year-on-year to INR17,801 crores, resulting in an AUM of INR1,29,787 crores, a growth of 21% year-on-year.”

“The secured SME finance business across all key product lines, including LAP, SME and SBPL continued its strong growth trajectory for the quarter with disbursements increasing by 42% year-on-year to INR9,345 crores.”

“resulting in an overall AUM growth of 27% year-on-year to INR72,356 crores with LAP at INR57,447 crores, a growth of 24%, SME at INR10,943 crores, a growth of 45% and SBPL at INR3,966 crores, a growth of 35%.”

“Consumer loan disbursements grew by 103% year-on-year to INR8,726 crores, resulting in an AUM of INR45,902 crores, up 32% year-on-year.”

“segments with housing loans, CSEL and gold loans registering disbursement growth of 43%, 103% and 320%, respectively. AUM in home loans stood at INR25,240 crores, CSEL at INR17,216 crores and gold loans at INR3,446 crores.”

“While sustaining the 40% growth seen in Q2 may be challenging, industry growth of around 20% to 22% appears achievable.”

“Taking all segments together, it appears that the industry should be able to deliver 15% to 20% growth in the second half even under a conservative scenario, supported by healthy demand trends across most vehicle categories.”

“While the rainfall deficit is around 13%, sowing activity has remained broadly in line with last year.”

“As they grow, our number is likely to grow. But we are gaining the market share as well.”

“Yes, it looks very steady and growing very steadily.”

“No, the increase you are seeing in employee expenses is primarily because we have moved a significant number of employees from our outsourcing entity to the main company payroll.”

“You can see a similar decline in outsourced costs, with nearly Rs.100 crore reduction compared to Q1, which has effectively shifted into the employee cost line.”

“The positive takeaway for us is that operating expenses in our mature businesses such as Vehicle Finance, and Loan Against Property have been trending down as these portfolios continue to benefit from scale and operating leverage.”

“We did only one deal this quarter, so that is 20 basis points, you will get a drop in.”

“As of now, businesses such as Affordable Housing and Loan Against Property are evaluating these actions and may implement them over the next one to two months.”

“The company continues to maintain a strong liquidity and capital position with total liquid assets of INR21,974 crores, including undrawn sanctioned credit lines. As of September 2026, the capital adequacy ratio stood at 20.62% with Tier 1 capital at 16.02%.”

“From a borrowing mix perspective, approximately 25% of our borrowings are linked to the repo rate, while another 25% are linked to other market benchmarks.”

“But broadly, we have also internally decided to keep anywhere between 5% to 7% of the book as an assigned book.”

“While MCLR has not increased materially so far, it is likely to trend upward gradually over time. That said, we do not expect any significant impact from these movements during the current year.”

“We had to exhaust the limits set for it. So that, we have said, and we have exhausted. So we may not go again for that in the near future.”

“Given the strong growth momentum across our businesses, the Board has approved a proposal to raise up to INR5,000 crores of capital, subject to shareholder and regulatory approvals.”

“The capital raise, we will do. It depends obviously on market conditions. So we'll be kind of conscious of market conditions, but we will do it kind of in the near to medium term, depending on market conditions.”

“We are looking at both options, either a full equity or a breakup.”

“As on September 2026, the conversion of CCDs into equity shares were completed.”

“On the capital raise, our announcement should be viewed in the context of maintaining a strong balance sheet and adequate capital buffers.”

“Second, we incurred expenses related to our annual business meet, for which we took employees to Australia. This is a one-time expense and has also contributed to the increase in operating costs during the quarter.”

“Considering both these factors, we do not see any meaningful cause for concern at this stage.”

“The actual impact, if any, is likely to become much clearer only by December, once the post-monsoon trends and their effect on economic activity are fully visible.”

“The only area where we have observed some stress is in small-ticket secured loans below ₹5 lakh, particularly in a few select markets.”

“In our view, any meaningful increase in funding costs arising from higher benchmark rates is more likely to be felt in the next financial year rather than the current one.”

“On insurance income, as mentioned earlier, we have already evaluated various scenarios and do not believe this will create a significant issue for us. We have alternative plans and revenue levers available.”

“Aggregate disbursements grew by 47% year-on-year to INR35,872 crores, reflecting healthy demand conditions, execution strength and continued expansion of our distribution franchise.”

“This translated into an AUM of INR2,68,009 crores, registering a growth of 25% year-on-year.”

“Our strong portfolio performance led to a reduction in credit cost by 37 bps. Consequently, our profitability improved with margins, our PBT ROA expanding by 40 bps year-on-year. This translated into a stronger return profile with ROE improving to 19.4% compared to 18.1% a year ago.”

“Gross Stage 3 improved to 3.25% in September '26 from 3.29% in June '26. GNPA as per RBI norms improved to 4.44% in September '26 from 4.50% in June '26.”

“In reality, business volumes remained at broadly similar levels. Q2 performance was marginally better than Q1 across businesses, although the year-on-year growth appears stronger primarily because the base in Q2 of the previous year was comparatively lower.”