Cholamandalam Investment and Finance Company Limited Earnings Summary — Q4 FY2026
Cholamandalam Investment & Finance Posts Strong 54% Profit Growth in Q4 FY2026
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 ₹8,856 Cr is 21.9% higher year-on-year.
- Revenue has compounded at 24.5% 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 ₹1,656 Cr is 45.6% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 21.7% annualised across the period.
- Operating margin stands at 70.0% in Q1 FY2027.
- Operating margin expanded by 151 bps year-on-year.
- Over the last two years operating margin has contracted by 24 bps.
- PBT margin is 25.1%.
- Expense growth of 16.0% remained below revenue growth of 21.9%.
- Operating profit of ₹6,204 Cr is 24.6% 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 82/100 (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 | 8,856 | 8,417 | 7,898 | 7,491 | 7,267 | 7,046 | 6,733 | 6,255 | 5,812 | 5,410 |
| Expenses | Improving | 2,652 | 2,597 | 2,554 | 2,460 | 2,286 | 2,010 | 2,038 | 1,897 | 1,727 | 1,417 |
| Operating Profit | Improving | 6,204 | 5,820 | 5,344 | 5,031 | 4,980 | 5,036 | 4,695 | 4,358 | 4,085 | 3,993 |
| Operating Margin | Stable | 70.0% | 69.2% | 67.7% | 67.2% | 68.5% | 71.5% | 69.7% | 69.7% | 70.3% | 73.8% |
| Other Income | Improving | 102 | 148 | 111 | 123 | 87 | 92 | 105 | 68 | 45 | 105 |
| Interest | Improving | 4,007 | 3,753 | 3,646 | 3,517 | 3,468 | 3,365 | 3,275 | 3,059 | 2,796 | 2,579 |
| Depreciation | Stable | 75 | 72 | 74 | 71 | 67 | 64 | 59 | 63 | 59 | 75 |
| Profit Before Tax | Improving | 2,224 | 2,143 | 1,736 | 1,566 | 1,532 | 1,699 | 1,466 | 1,305 | 1,275 | 1,444 |
| Tax | Improving | 567 | 498 | 446 | 406 | 394 | 439 | 377 | 337 | 328 | 379 |
| Net Profit | Improving | 1,656 | 1,645 | 1,290 | 1,160 | 1,138 | 1,260 | 1,088 | 968 | 947 | 1,065 |
| Net Margin | Stable | 18.7% | 19.6% | 16.3% | 15.5% | 15.7% | 17.9% | 16.2% | 15.5% | 16.3% | 19.7% |
Key Takeaways
- Net profit saw a robust sequential jump of 27.5%, reaching ₹1,645 Crores in Q4 FY2026.
- Quarterly revenue hit an all-time high of ₹8,417 Crores, representing 19.5% YoY growth.
- Financing margins expanded to 25% from 22% in the previous quarter, indicating better yield management.
- Asset quality remains stable with the tax rate dropping slightly to 23% in the final quarter of the fiscal.
- Total borrowings crossed the ₹2.11 lakh crore mark, reflecting massive scale-up in the lending book.
- Earnings per share (EPS) surged to ₹19.31 for the quarter, the highest in the company's reporting history.
Management Guidance
Management remains focused on 'Chola 2.0', emphasizing digital-heavy micro-LAP and consumer loans while leveraging the Murugappa Group's pedigree for low borrowing costs.
Sentiment Shift
Improving
A significant expansion in financing margins and a sharp rebound in net profit growth compared to previous quarters indicates improving operational efficiency.
Outlook
The outlook remains strong as the company continues to diversify from vehicle finance into higher-yield segments like Home Loans and LAP while maintaining a long-term ROE of approximately 19-20%.
From the Annual Report (Key Quotes)
“Chola has evolved from a pure-play vehicle financier into a diversified NBFC powerhouse.”
“The pedigree provides a significant advantage in borrowing costs and trust.”
“Managed by the Murugappa Group, the leadership is known for conservative accounting and a long-term 'Southern' business ethos.”
Official Quarterly Documents
This summary is AI-generated from Cholamandalam Investment and Finance Company Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.
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