Cholamandalam Investment and Finance Company Ltd.AUM at ₹2.28L Cr, Asset Quality Inflecting

Cholamandalam Investment and Finance delivered steady Q3 FY26 results with aggregate disbursements of ₹29,962 crore rising 16% year-on-year, lifting AUM to ₹2,27,770 crore with 20% annual growth.

Return on Assets stood at 3.2% and Return on Equity at 19.11%, while net interest margins improved 33 basis points year-on-year as RBI rate cuts lowered the cost of funds. Capital adequacy remained comfortable at 19.16% with Tier 1 at 14.12%, and the Board declared an interim dividend of ₹1.30 per share. Asset quality lead indicators are turning — vehicle finance Stage 2 improved 30 basis points to 3.61%, and CSEL net credit losses declined from the Q2 peak of 7.0% to 6.4% as the partnership book runs down from ₹3,000 crore to ₹600 crore.

Management cited real-time January data to support a Q4 improvement thesis, guiding NIM at approximately 8.1% and maintaining full-year AUM growth guidance of 20-22%. CSEL NCL is targeted to fall below 5% by FY27 as quality sourcing improves.