Q2 2026 Cholamandalam Investment and Finance Company Ltd Earnings Call Transcript
Key Points
- Cholamandalam Investment and Finance Co Ltd (BOM:511243) reported a 21% year-on-year growth in assets under management (AUM), reaching INR 2,14,906 crores.
- The company's net interest margin (NIM) improved from 7.5% to 7.9% during the quarter, with expectations of further improvement in the second half of the year.
- The vehicle finance segment registered a 17% growth in AUM, while the loan against property (LAP) segment grew by 33%.
- The company holds a strong liquidity position with total liquid assets of INR 17,516 crores and a capital adequacy ratio of 20%.
- Cholamandalam Investment and Finance Co Ltd (BOM:511243) expects stronger growth and profitability in the second half of the fiscal year, driven by improved disbursement growth and favorable market conditions.
- Home loans disbursement was negative in the quarter due to procedural changes in registration processes in key markets.
- The consumer and small enterprise loan (CSEL) business experienced a decline due to the cessation of disbursements through fintech partnerships.
- Higher delinquencies were observed in the unsecured business loans portfolio under CSEL, particularly in certain markets.
- The company expressed concerns about the extended monsoon and its potential impact on agricultural harvests, which could affect future performance.
- Stage 3 numbers increased across all product segments, indicating some stress in asset quality.
(technical difficulty) Conference call of Chola Mandelam Investment and Finance Company Limited. (technical difficulty) performance and share industry and business updates, we have with us the senior management today.
Senior management is represented by Mr. Vellayan Subbiah, Chairman and Nonexecutive Director; Mr. Ravindra Kundu, Managing Director and CEO; and 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, for hosting the call. Good morning, everybody. I'm happy to take you through the performance for the quarter.
Just in terms of a big -- a quick backdrop, obviously, there were a lot of changes in the quarter with rationalized GST rates, repo rate reductions taken by the government which are quite proactive. I'd just like to say and actually, they're quite positive
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