Cholamandalam Financial Holdings Limited Earnings Summary — Q1 FY2027
Cholamandalam Financial Holdings Reports 42% Surge in Consolidated PAT to ₹1,789 Crore
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 10 consecutive quarters.
- Revenue of ₹11,114 Cr is 19.5% higher year-on-year.
- Revenue has compounded at 22.3% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹806 Cr is 39.3% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 22.2% annualised across the period.
- Operating margin stands at 57.5% in Q1 FY2027.
- Operating margin expanded by 207 bps year-on-year.
- Over the last two years operating margin has expanded by 14 bps.
- PBT margin is 21.6%.
- Expense growth of 14.0% remained below revenue growth of 19.5%.
- Operating profit of ₹6,392 Cr is 24.0% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 84/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 11,114 | 10,366 | 9,949 | 9,461 | 9,296 | 8,913 | 8,489 | 8,090 | 7,633 | 7,066 |
| Expenses | Improving | 4,721 | 4,541 | 4,487 | 4,359 | 4,142 | 3,709 | 3,772 | 3,537 | 3,253 | 2,932 |
| Operating Profit | Improving | 6,392 | 5,825 | 5,462 | 5,102 | 5,154 | 5,204 | 4,718 | 4,553 | 4,380 | 4,134 |
| Operating Margin | Stable | 57.5% | 56.2% | 54.9% | 53.9% | 55.5% | 58.4% | 55.6% | 56.3% | 57.4% | 58.5% |
| Other Income | Improving | 103 | 156 | 137 | 130 | 88 | 98 | 106 | 91 | 45 | 110 |
| Interest | Improving | 4,007 | 3,755 | 3,648 | 3,518 | 3,468 | 3,361 | 3,280 | 3,058 | 2,796 | 2,582 |
| Depreciation | Stable | 87 | 84 | 87 | 83 | 79 | 79 | 72 | 74 | 70 | 88 |
| Profit Before Tax | Accelerating | 2,400 | 2,142 | 1,863 | 1,632 | 1,696 | 1,862 | 1,471 | 1,513 | 1,559 | 1,574 |
| Tax | Accelerating | 611 | 517 | 477 | 417 | 437 | 500 | 378 | 387 | 400 | 430 |
| Net Profit | Improving | 806 | 687 | 626 | 550 | 579 | 614 | 486 | 526 | 548 | 513 |
| Net Margin | Stable | 7.3% | 6.6% | 6.3% | 5.8% | 6.2% | 6.9% | 5.7% | 6.5% | 7.2% | 7.3% |
Key Takeaways
- Consolidated Profit After Tax (PAT) increased by 42% YoY to ₹1,789 crore, driven by strong growth in the lending subsidiary.
- Lending subsidiary CIFCL (NBFC) reported 22% disbursement growth (₹29,612 Cr) and 46% PAT growth (₹1,654 Cr).
- Insurance subsidiary CMSGICL saw a 6% growth in Gross Written Premium to ₹2,189 crore, with PAT rising to ₹128 crore.
- Insurance claims ratio stood at 81.3%, impacted by higher Motor Own Damage (OD) severity and competitive intensity.
- Standalone entity remains primarily a holding company with minimal direct operational income (₹4.36 Cr total income).
- Consolidated AUM for CIFCL reached ₹2,54,392 crore as of June 30, 2026, representing 23% YoY growth.
- Company implemented New Labor Code provisions, impacting employee benefits by ₹57.40 crore for the fiscal year ended March 2026.
Management Guidance
Management aims to maintain a medium-to-long term ROE target of 15%+ for the insurance business despite competitive pressures. Plans include launching the 'Chola Xceed' digital app to enhance partner engagement and renewal ratios, alongside a calibrated transition to Ind AS for the insurance subsidiary by April 1, 2027.
Sentiment Shift
Improving
Consolidated earnings momentum remains strong with AUM growth of 23% and a significant 42% jump in PAT, offsetting slight volatility in insurance loss ratios.
Outlook
The outlook is positive driven by the NBFC arm's aggressive disbursement growth and stable margins. The general insurance segment expects a reduction in Motor OD loss ratios following recent pricing corrections (7-8% improvement) and potential participation in upcoming crop insurance tenders.
From the Annual Report (Key Quotes)
“The company has achieved consolidated PAT of Rs. 1,789 Cr as against Rs. 1,260 Cr in the corresponding quarter of the previous year, registering a growth of 42%.”
“Chola MS continues to be prudent and conservative in its provisioning for motor TP losses with the level of provisioning booked 10% higher than many of its peers.”
“We will endeavor to remain at the 15% plus ROE levels... whatever it takes, whether it is managing float income or combined ratio.”
Official Quarterly Documents
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This summary is AI-generated from Cholamandalam Financial Holdings Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.
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