Cholamandalam Investment and Finance Company Ltd.AUM +23%, ROA 3.7%

Cholamandalam reported Q1 FY27 aggregate disbursements of ₹29,612 Cr, up 22%, and AUM of ₹2,54,392 Cr, up 23%.

Vehicle finance AUM grew 19%, MSME AUM 26% and consumer AUM 24%, with SME and SBPL AUM up about 40% and gold loans at ₹2,143 Cr. NIM improved 42 bps year on year to about 8.2% on lower funding costs, net credit cost fell to 1.5% from 1.8%, and ROA rose to 3.7% from 3.1% with ROE of 21.2%. Gross Stage 3 rose seasonally from March, but by less than last year, and the FY27 net credit cost target of 1.5% was reached in Q1. Management changed disbursement recognition to the date a cheque clears, which lowered reported mortgage and used-vehicle disbursements this quarter, but like-for-like growth was above 20%.

Capital adequacy is 19.81%, with ₹430 Cr of convertible debentures due to convert in October. Cost of funds may rise about 10 bps in the second half if the repo rate rises, and gold loans are targeted at ₹5,000 Cr with 360 new branches.