Cholamandalam Financial Holdings Limited has filed its Business Responsibility and Sustainability Report for the financial year ended March 31, 2026, with the stock exchanges. The report, prepared on a consolidated basis, covers the company along with its associate Cholamandalam Investment and Finance Company Limited and subsidiary Cholamandalam MS General Insurance Company Limited. It details the group's performance across environmental, social, and governance parameters, including an independent assessment by B Thiagarajan & Co., Chartered Accountants.

Business Overview and Operations

The group operates primarily in the financial services sector, with lending business contributing 77.97% of the total turnover and general insurance business accounting for 21.67%. Operations are spread across 1,909 offices nationally, serving 26 states and 7 union territories for the lending business, and 23 states and 5 union territories for the insurance business. The consolidated turnover for the period stood at ₹39,576 crore, while the net worth was ₹33,880 crore.

Employee Statistics and Well-being

As of March 31, 2026, the total workforce comprised 53,514 employees, including 28 differently abled individuals. The gender diversity stood at 96% male and 4% female employees. The company reported a turnover rate of 29% for permanent employees in FY 26. Spending on well-being measures accounted for 0.39% of the total revenue. The group ensured 100% coverage for permanent employees under health and accident insurance, with 67% covered for paternity benefits.

Environmental Performance

The group reported a total energy consumption of 1,38,783 Giga Joules in FY 26, with renewable sources contributing 1,138 Giga Joules. Total Scope 1 and Scope 2 greenhouse gas emissions were recorded at 18,881 metric tonnes of CO2 equivalent. Water consumption totalled 7,13,638 kilolitres, sourced entirely from third-party water. The company generated 266.44 metric tonnes of waste, of which 138.34 metric tonnes were recovered through recycling or other recovery operations. The report confirmed zero data breaches in customer data protection for the lending business during the year.

Stakeholder Grievances and Governance

The group established mechanisms to address grievances across various stakeholder categories. During FY 26, it received 30,322 customer complaints, resolving 30,321 with one pending. Shareholders filed 21 complaints, of which three remained pending at the close of the year. The report also highlighted that the group had no fines or penalties imposed by regulators during the financial year. The independent assessment by B Thiagarajan & Co. concluded that the BRSR Core disclosures are aligned with the SEBI framework and supported by underlying data.

Cholamandalam Financial Holdings Limited has convened its 77th Annual General Meeting (AGM) to be held at 2.30 p.m. IST on Friday, August 14, 2026, through Video Conference (VC), in accordance with the Ministry of Corporate Affairs General Circular No. 3/2025 dated September 22, 2025, which permits companies to conduct AGMs through VC or Other Audio Visual Means (OAVM) till further orders. The notice of the AGM, along with the Annual Report for FY 2025-26, has been dispatched electronically to shareholders whose email addresses are registered with the Company or Depository Participants.

Key AGM Details and E-Voting Schedule

Shareholders will exercise their votes electronically through the NSDL e-voting platform. The key dates for the meeting and e-voting process are as follows:

Ms. Srinidhi Sridharan of M/s. Srinidhi Sridharan & Associates, Company Secretaries, has been appointed as the scrutiniser to oversee the e-voting process in a fair and transparent manner.

AGM Agenda: Ordinary and Special Business

The AGM will transact the following businesses:

Ordinary Business:

• Adoption of the Audited Standalone Financial Statements for the financial year ended March 31, 2026, together with the Reports of the Board of Directors and the Independent Auditors.
• Adoption of the Audited Consolidated Financial Statements for the financial year ended March 31, 2026, together with the Independent Auditors' Report.
• Declaration of a final dividend of ₹1.30/- per equity share (130% on the face value of ₹1/- each) for the financial year ended March 31, 2026.
• Re-appointment of Mr. Vellayan Subbiah (DIN: 01138759), Non-Executive Director, who retires by rotation and is eligible for re-appointment.

Special Business:

• Appointment of Mr. Shyam Shankar as Manager of the Company for a term of five (5) consecutive years with effect from June 15, 2026 to June 14, 2031 (both days inclusive).

Proposed Dividend

The Board of Directors has recommended a final dividend at the rate of 130%, being ₹1.30/- per equity share of face value of ₹1/- each for the year ended March 31, 2026 (previous year: ₹1.30/- per share). The dividend, if declared at the AGM, will be paid on or before September 12, 2026, to members whose names appear in the Register of Members as on the record date of August 7, 2026. Dividends will be paid exclusively through electronic mode.

Appointment of Mr. Shyam Shankar as Manager

Based on the recommendation of the Nomination & Remuneration Committee, the Board has appointed Mr. Shyam Shankar as Manager of the Company with effect from June 15, 2026, subject to shareholders' approval. He has also been appointed as the Chief Financial Officer of the Company with effect from the same date. Mr. Shyam Shankar is a qualified Chartered Accountant and Cost Accountant with over two decades of experience in senior finance roles within regulated financial services organisations. He is an employee of Cholamandalam Investment and Finance Company Limited (CIFCL) and is being deputed to the Company on a full-time basis.

The key terms of his appointment are summarised below:

Re-appointment of Mr. Vellayan Subbiah

Mr. Vellayan Subbiah (DIN: 01138759), Non-Executive Director, retires by rotation at the ensuing AGM and, being eligible, has offered himself for re-appointment. He holds a Bachelor of Technology degree in Civil Engineering from IIT Madras and a Masters degree in Business Administration from the University of Michigan, USA, and has over 29 years of experience across consulting, technology, financial services, and engineering. He attended 4 out of 5 Board meetings held during the year and holds nil shares in the Company.

FY 2025-26 Financial Highlights

The Annual Report for FY 2025-26 accompanies the AGM notice. Key consolidated and standalone financial highlights are presented below:

Consolidated Financial Results (₹ in Crore):

Standalone Financial Results (₹ in Crore):

On a standalone basis, CFHL earned an income of ₹89.79 crore (previous year: ₹86.20 crore) and profit before tax of ₹85.90 crore (previous year: ₹82.57 crore). Aggregate investments stood at ₹1,293.46 crore (previous year: ₹1,290.72 crore) as on March 31, 2026. The Company transferred ₹14.09 crore (previous year: ₹12.89 crore) to Statutory Reserve under Section 45-IC of the Reserve Bank of India Act, 1934.

Group Company Performance Highlights

Cholamandalam Investment and Finance Company Limited (CIFCL), the NBFC associate treated as subsidiary for consolidation, reported Assets Under Management (AUM) growth of 21% to ₹2,42,630 crore as of March 31, 2026 (previous year: ₹1,99,876 crore). Loan disbursements aggregated to ₹1,11,642 crore (previous year: ₹1,00,869 crore), registering a growth of 11%. Profit after tax grew by 23% to ₹5,220 crore (previous year: ₹4,259 crore). CIFCL's capital adequacy ratio stood at 19.21% as on March 31, 2026, against the minimum regulatory requirement of 15%.

Cholamandalam MS General Insurance Company Limited (CMSGICL) achieved a gross written premium of ₹9,110 crore in FY 26 (previous year: ₹8,564 crore) and profit before tax of ₹342 crore (previous year: ₹650 crore). The company's investment portfolio stood at ₹19,013 crore as of March 31, 2026 (previous year: ₹18,601 crore), with a solvency ratio of 1.96 times against the minimum regulatory requirement of 1.50 times.

Cholamandalam MS Risk Services Limited (CMSRSL), the joint venture entity, achieved an income of ₹98.78 crore (previous year: ₹83.20 crore) and profit before tax of ₹10.32 crore (previous year: ₹9.53 crore) for the year ended March 31, 2026. The Board of CMSRSL has recommended a final dividend of 50%, being ₹5/- per equity share of face value of ₹10/- each for FY 26.