Q1 2026 Cholamandalam Investment and Finance Company Ltd Earnings Call Transcript
Key Points
- Cholamandalam Investment and Finance Co Ltd (BOM:511243) reported a robust AUM growth of 23% year-on-year, reaching INR27,663 crore.
- The company launched its gold loan business in Q1 FY26, opening 73 independent branches.
- Net Interest Margin (NIM) improved marginally from 7.6% in Q1 FY25 to 7.8% in Q1 FY26.
- The company maintained a strong liquidity position with total liquid asset holdings of INR17,226 crore.
- Capital adequacy ratio stood at a healthy 19.96% with Tier 1 capital at 14.31%.
- Disbursement growth was muted in Q1 FY26, with a marginal decline in home loans due to changes in the home registration process.
- Credit costs increased by 30 bps over the previous year, primarily due to stress in the auto and consumer loan segments.
- Stage 3 assets increased to 3.16% in June 2025 from 2.81% in March 2025.
- Early monsoon arrival impacted vehicle utilization, leading to lower earnings for operators and deferred loan payments.
- The company faced challenges in the vehicle finance segment, with increased NPLs due to lower industrial production and early rains affecting capacity utilization.
Good morning everyone. We welcome to the earnings conference call of Cholamandalam Investment and Finance Company Limited, to discuss the Q1 FY26 performance of Chola and share industry and business updates. We have the senior management with us, represented by Mr. Vellayan Subbaiah, Chairman and Non-Executive Director; Mr. Ravindra Kundu, Managing Director and CEO, Mr. Arul Selvan, Chief Financial Officer.
I would now like to hand over the call to Vellayan for his opening comments, after which we'll take the Q&A.
Thank you, Nischint, and Kotak for hosting this call. Good morning, everyone. Happy to take you through the performance for this quarter. As a backdrop, here is a quick glance on the economic environment that prevailed -- the global economy during April to June faced uncertainty largely on account of the U.S. tariff and trade policy concerns and also geopolitical risks in the Iran Israel
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