Chennai, August 14, 2026: Cholamandalam Financial Holdings Limited reported a 42% year-on-year rise in consolidated net profit after tax (PAT) to ₹1,789 crore for the quarter ended June 30, 2026. The holding company’s total income expanded by 20% to ₹11,214 crore, reflecting sustained momentum across its core financing operations, while its insurance segment navigated intense market competition.

The Board of Directors approved the unaudited financial results at a meeting held on August 14, 2026. Statutory auditors R.G.N. Price & Co. issued a limited review report on the standalone and consolidated financial statements. The company also released its corporate presentation for Q1-FY27 and held an earnings call with analysts and investors on August 14, 2026, providing detailed insights into segment-wise performance and strategic initiatives.

Consolidated Performance Overview

The group’s revenue growth was primarily driven by its majority-stake subsidiary, Cholamandalam Investment & Finance Company Ltd (CIFCL), and its general insurance arm, Cholamandalam MS General Insurance Company Ltd (CMSGICL).

Profit before tax stood at ₹2,400 crore, compared to ₹1,696 crore in the corresponding quarter of the previous year. Tax expense was recorded at ₹611 crore. On a year-to-date basis through March 2026, the group reported revenue of ₹39,576 crore and PAT of ₹5,485 crore.

Subsidiary Highlights

CIFCL, in which the holding company holds a 43.74% stake, disbursed loans worth ₹29,612 crore in the quarter, a 22% increase from ₹24,325 crore in Q1 FY26. The subsidiary reported a PAT of ₹1,654 crore, up 46% from ₹1,136 crore a year ago. CIFCL’s assets under management grew by 23% to ₹2,54,392 crore as of June 30, 2026.

Key operational metrics for CIFCL include:

• Loan Losses: Improved to 2.0% in Q1 FY27 compared to 2.2% in Q1 FY26.
• Asset Quality: Gross NPA (GNPA) stood at 4.50% and Net NPA (NNPA) at 2.95% as of June 2026, per revised RBI norms.
• Disbursement Growth: Specific segments saw robust growth, with Heavy Commercial Vehicles (HCV) up 13%, Light Commercial Vehicles (LCV) up 18%, Small Commercial Vehicles (SCV) up 31%, Passenger Vehicles up 26%, Two-wheelers up 20%, Construction Equipment up 9%, and Tractors up 19%.

CMSGICL, a 60%-stake subsidiary, registered a Gross Written Premium (GWP) of ₹2,189 crore, up 6% from ₹2,073 crore in the prior year period. The insurer achieved a profit of ₹128 crore, compared to ₹119 crore in Q1 FY26. Its investment book stood at ₹19,172 crore as of June 30, 2026. Solvency ratio remained healthy at 1.928x.

Cholamandalam MS Risk Services Ltd., a joint venture in which the company holds a 49.5% stake, registered total income of ₹24.86 crore for the quarter ended June 30, 2026, against ₹20.44 crore in the corresponding quarter of the previous year. PAT fell to ₹0.94 crore from ₹1.23 crore.

Insurance Segment Dynamics

During the earnings call, management highlighted that the general insurance industry recorded growth of approximately 8.3% in Q1, driven by motor and health segments, while commercial lines faced pressure due to intense pricing competition. CMSGICL reported gross direct premium income (GDPI) of ₹1,860 crore, registering growth of 2.6% over Q1 of last year. GWP grew by 6.7% to ₹2,130 crore.

The motor segment, which accounts for approximately 70% of the book, grew by 5.7%, driven primarily by commercial vehicles. However, the motor OD loss ratio deteriorated to over 80% from the 71-73% range in FY25. Management stated that the current OD loss ratio is not acceptable and initiated corrective measures including portfolio optimization, targeted pricing interventions, and enhanced claims management. The immediate objective is to bring the OD loss ratio down to the high-70s range.

In commercial lines, CMSGICL performed relatively better than the market despite an 8.6% decline in the segment, primarily due to pricing pressure in fire business. The fire line of business recorded an industry-wide decline of approximately 28%, while CMSGICL’s decline was limited to 15.5%. A large fire loss of ₹12.4 crore impacted the quarter’s results. Management expects greater pricing discipline in property insurance following NATCAT events experienced in June.

The health segment saw moderate growth as the company prioritized portfolio quality over volume expansion. Corrective measures included product redesign, pricing revisions, and migration of select group portfolios to retail platforms. The company maintains a hospital network exceeding 13,000 hospitals through PSU bank partnerships.

For the quarter, CMSGICL’s net earned premium stood at approximately ₹1,671 crore. The claims ratio increased to 85.6%, compared to 81.3% in the corresponding quarter of the previous year. The combined ratio stood at 120.4%, reflecting higher motor reserve strengthening, elevated motor OD claims experience, and the large fire loss. Operating profit was ₹71 crore, while profit before tax was ₹116 crore.

Segment-wise Breakdown

The financing segment contributed ₹8,856 crore to segment revenue, while the insurance segment generated ₹2,322 crore. The financing segment’s profit before tax rose to ₹2,222 crore from ₹1,531 crore, whereas the insurance segment’s PBT improved significantly to ₹173 crore from a loss of ₹4.9 crore in the same quarter last year.

Regulatory Capital and Liquidity

As of June 30, 2026, Cholamandalam Financial Holdings Limited maintained a Capital Ratio of 2,359.32% against a regulatory minimum of 30.00%. The Leverage Ratio was 0.0002 against a maximum of 2.50. Investments in group companies accounted for 99.818% of net assets, well above the regulatory minimum of 90.000%.

The company continues to hold a strong liquidity position with ₹22,765 crore in cash balance as at end of June 2026. This includes Highly Liquid Assets (HQLA) of ₹7,614.93 crore invested in GSEC, SDL, T-bills, and Strips. Total liquidity position stood at ₹23,984 crore, including undrawn sanctioned lines.

What the Numbers Show

The consolidated results highlight a divergence between the holding company’s standalone performance and its group-wide profitability. While the standalone entity logged a modest PAT of ₹4.38 crore on total income of ₹4.36 crore, the group leveraged its subsidiaries to generate substantial scale. Notably, non-controlling interests accounted for ₹983 crore of the total PAT, indicating that minority shareholders in subsidiaries like CIFCL and CMSGICL captured more than half of the group’s net earnings for the quarter. This structure underscores the holding company’s reliance on subsidiary performance for overall profitability.

Additionally, the insurance segment’s profitability remains sensitive to external factors such as pricing competition and catastrophic events. The ₹12.4 crore fire loss and elevated motor OD loss ratios demonstrate how operational discipline is being tested by industry-wide headwinds. Management’s focus on bringing the OD loss ratio back to the high-70s range will be critical for sustaining long-term underwriting profitability in this key segment.

Standalone Results

On a standalone basis, total income increased to ₹4.36 crore from ₹3.65 crore in the corresponding quarter of the previous year. PAT doubled to ₹4.38 crore from ₹2.11 crore. Interest income rose to ₹1.86 crore from ₹1.15 crore, while dividend income was nil compared to ₹48.48 crore in the preceding quarter.

Cholamandalam Financial Holdings Limited shareholders approved all five ordinary resolutions tabled at its 77th Annual General Meeting (AGM) held on August 14, 2026, via video conference. The consolidated scrutinizer’s report, submitted to the National Stock Exchange of India Ltd and BSE Limited on August 17, 2026, confirmed that each resolution passed with the requisite majority under Regulation 44(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Voting Participation

The company had 44,931 shareholders on the record date of August 7, 2026. Participation was primarily through remote e-voting and electronic voting during the AGM session facilitated by National Securities Depository Limited (NSDL). No shareholders attended in person or through proxy. A total of 52 shareholders attended via video conferencing, comprising 39 from the promoter group and 13 from the public category.

Resolution Results

All five resolutions were approved. The promoter and promoter group, holding 87,193,569 shares, voted 100% in favour across all agenda items. Institutional investors also showed strong support, while non-institutional public shareholders registered minimal dissent on specific governance-related resolutions.

Key Governance Outcomes

The meeting transacted all businesses outlined in the notice dated May 8, 2026. Key outcomes included:

• Adoption of audited standalone and consolidated financial statements for the year ended March 31, 2026, along with reports of the Board of Directors and Independent Auditors.
• Approval of the final dividend for FY26.
• Re-appointment of Mr. Vellayan Subbiah, a director retiring by rotation.
• Appointment of Mr. Shyam Shankar as Manager for a five-year term effective from June 15, 2026, to June 14, 2031.

Scrutinizer Report Details

Ms. Srinidhi Sridharan of M/s. Srinidhi Sridharan & Associates served as the scrutinizer for the e-voting process. The remote e-voting facility was available from August 11, 2026, at 9:00 am to August 13, 2026, at 5:00 pm. The electronic data relating to remote e-voting and electronic voting is under the safe custody of the scrutinizer and will be handed over to the Company Secretary after the Chairman approves the minutes.

The statutory auditor’s report and secretarial auditor’s report contained no qualifications, observations, or adverse remarks. Consequently, these reports were not read out at the meeting, in compliance with the Companies Act, 2013. Senior management, including CFO Mr. Shyam Shankar and Company Secretary Mrs. E Krithika, attended the meeting alongside representatives from subsidiary companies Cholamandalam Investment and Finance Company Limited and Cholamandalam MS General Insurance Company Limited.