Cholamandalam Investment and Finance Company Limited has allotted Secured Non-Convertible Securities (NCS) worth ₹500 crs through a private placement under the NSE Electronic Book Provider (EBP) platform. The allotment, comprising 50,000 securities, was made in compliance with Regulation 30 and 30(A) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as communicated to the Bombay Stock Exchange of India Limited.

Key Details of the NCS Allotment

The allotted securities have been listed on the Wholesale Debt Market (WDM) segment of NSE. The issue carries a coupon rate of 8.08% and has a tenure of 3 years 1 month (1,127 days). The following table summarises the key parameters of the allotment:

Issue Structure and Security

The total issue size is ₹1,500 crs, which includes a green shoe option of ₹1,000 crs. The securities are secured at 1x, providing investors with asset-backed coverage. Coupon payments are scheduled on 5th June 2026, annually thereafter, and on the maturity date of 5th June 2029. No special rights, interests, or privileges have been attached to these securities, and there are no reported delays or defaults in payment of interest or principal.

Regulatory Compliance

The allotment has been carried out in accordance with the applicable SEBI listing regulations. The compliance certificate was submitted to the Listing Department of the Bombay Stock Exchange of India Limited, confirming adherence to Regulation 30 and 30(A). The communication was signed by Hardik D. Pandya, Authorised Signatory of Cholamandalam Investment and Finance Company Limited, on 5th May 2026.

Cholamandalam Investment and Finance Company has attracted divergent analyst views, with Jefferies maintaining a Buy rating at a revised target price of ₹1,960 and Nomura initiating coverage with a Neutral rating and a target price of ₹1,760. Both brokerages acknowledge a strong Q4 performance, with profit after tax rising approximately 30% year-on-year, beating analyst estimates, driven by higher net interest income and fee income.

Analyst Ratings at a Glance

The two brokerage assessments reflect differing perspectives on the company's growth trajectory and valuation. The key parameters from each are summarised below:

Strong Q4 Earnings Performance

Cholamandalam Investment and Finance Company delivered a notable Q4 earnings beat, with profit after tax rising approximately 30% year-on-year, surpassing analyst estimates. Jefferies attributed this outperformance primarily to higher net interest income and fee income, which together provided a solid top-line boost. Nomura also acknowledged the Q4 PAT beat at approximately 10%, noting that provisioning buffers support near-term stability. The quarter also saw robust auto disbursals and recovery in the SME segment, contributing to the overall earnings strength.

AUM Expansion, Margins, and Asset Quality

Assets under management recorded strong growth of approximately 21%, driven by healthy disbursement activity during the quarter. Net interest margins improved by 5 basis points quarter-on-quarter, indicating a gradual recovery in the spread environment. On the asset quality front, the company reported lower gross Stage 3 assets and reduced slippages, pointing to improved collection efficiency and portfolio health. The credit cost stood at approximately 1.53%, with the outlook pointing to easing credit costs going forward. The key operational metrics are presented below:

Divergent Brokerage Outlooks

Jefferies holds a constructive view, supported by the combination of earnings beat, balance sheet expansion, margin improvement, and asset quality gains. The brokerage projects an AUM CAGR of approximately 21%, an EPS CAGR of approximately 24%, and a return on equity of approximately 20% over FY26–28, making valuations attractive at the revised target of ₹1,960. Nomura, on the other hand, takes a more cautious stance with a Neutral rating and a target price of ₹1,760, acknowledging the Q4 beat and provisioning buffers but noting that overall growth is expected to remain range-bound after a weak year, even as FY27 AUM growth guidance of 20–23% and a lower credit cost outlook provide some support.