Cholamandalam Investment and Finance Company Limited (CIFCL) has reported a robust performance for the second quarter and first half of fiscal year 2025-26, with significant growth across key financial metrics.

Strong Growth in Assets Under Management

The company's Assets Under Management (AUM) reached ₹2,14,906 crore as of September 30, 2025, marking a substantial 21% year-over-year increase. This growth underscores CIFCL's expanding market presence and effective asset management strategies.

Profit and Income Highlights

For Q2 FY26, CIFCL posted a Profit After Tax (PAT) of ₹1,155.00 crore, up 20% from the same quarter last year. The half-yearly PAT also saw a 20% increase, reaching ₹2,291.00 crore. Net Income for the quarter stood at ₹4,075.00 crore, reflecting a 26% year-over-year growth, while the half-yearly figure rose to ₹7,939.00 crore, up 27% from the previous year.

Segment-wise Performance

Vehicle Finance

Vehicle Finance (VF) continued to be a strong performer, with disbursements of ₹13,539.00 crore in Q2 FY26 and an AUM of ₹1,07,568.00 crore, growing 17% year-over-year.

Loan Against Property

The Loan Against Property (LAP) business showed remarkable growth, with its AUM increasing by 33% to ₹46,302.00 crore.

Home Loans and SME Loans

Home Loans and Small and Medium Enterprises Loans also demonstrated significant growth, with their AUMs rising by 28% each.

Asset Quality and Capital Adequacy

The company's asset quality remained stable, with Stage 3 assets representing 3.35% of total assets as of September 2025. The Gross Non-Performing Assets (GNPA) as per RBI norms stood at 4.57%, while Net NPA was at 3.07%.

CIFCL maintained a strong capital position with a Capital Adequacy Ratio of 20.00%, well above the regulatory requirement of 15%. The Tier-I Capital was at 14.59%, with Common Equity Tier-I Capital at 13.93%.

Liquidity Position

The company reported a robust liquidity position with ₹16,991.00 crore in cash balance, including ₹6,661.00 crore in high-quality liquid assets. The total liquidity position, including undrawn sanctioned lines, stood at ₹17,516.00 crore.

Outlook

Given the company's performance in the first half of FY26 and its strong capital and liquidity position, CIFCL appears well-positioned to capitalize on growth opportunities in the financial services sector. The company's ability to maintain asset quality while expanding its AUM will be crucial for sustaining this growth trajectory in the coming quarters.

Cholamandalam Investment and Finance Company (CIFCL) has reported a robust 20% year-on-year growth in revenue, profit before tax (PBT), and profit after tax (PAT) for the second quarter. The company's financial results, released on November 6, showcase strong performance across various business segments, albeit with some concerns regarding asset quality.

Financial Highlights

• Revenue for Q2 increased to ₹74.60 billion from ₹62.20 billion in the same period last year, representing a 20% year-over-year growth.
• Net profit for Q2 stood at ₹1,155.00 crore, up from ₹963.00 crore in the same period last year.
• Total Assets Under Management (AUM) reached ₹2,14,906.00 crore, marking a 21% increase year-on-year.
• Net income for the quarter rose by 26% to ₹4,075.00 crore.

Business Segment Performance

CIFCL reported growth across its major business segments:

The company's diversified portfolio continues to drive growth, with Loan Against Property and Secured Business and Personal Loans showing particularly strong expansion.

Asset Quality Concerns

Despite the overall positive performance, CIFCL's asset quality indicators showed some deterioration:

• Stage 3 assets (representing 90+ days past due) increased to 3.35% from 3.16% in the previous quarter.
• Gross Non-Performing Assets (GNPA) rose to 4.57% from 4.29% quarter-on-quarter.
• Net Non-Performing Assets (NNPA) increased to 3.07% from 2.86% in the previous quarter.

This uptick in NPAs may warrant closer monitoring in the coming quarters to ensure it doesn't become a long-term trend.

Liquidity and Capital Adequacy

CIFCL maintains a strong liquidity position with ₹16,991.00 crore in cash balance at the end of September. The company's Capital Adequacy Ratio (CAR) stands at 20.00%, well above the regulatory requirement of 15%, indicating a robust capital structure.

Looking Ahead

As Cholamandalam Investment and Finance Company continues its growth trajectory, investors and analysts will likely keep a close eye on the company's asset quality metrics in the coming quarters. The company's ability to maintain its growth momentum while managing asset quality will be crucial for its long-term performance in the competitive financial services sector.

CIFCL's Q2 results demonstrate the company's resilience and growth potential in the Indian financial services market. However, the slight deterioration in asset quality indicators suggests that the company may need to balance its growth ambitions with prudent risk management practices going forward.