Cholamandalam Investment and Finance Company Limited (CIFCL) has reported a 20% year-on-year growth in Profit After Tax (PAT) for both Q2 and H1 of FY26, according to its recently released financial results.

Key Financial Highlights

• Total Assets Under Management (AUM) reached ₹2,14,906.00 crore as of September 30, 2025, marking a 21% increase from the previous year.
• Net Income for Q2 FY26 stood at ₹4,075.00 crore, up 26% year-on-year, while H1 FY26 Net Income rose 27% to ₹7,939.00 crore.
• Profit After Tax (PAT) for Q2 FY26 was ₹1,155.00 crore, a 20% increase from Q2 FY25. H1 FY26 PAT also grew by 20% to ₹2,291.00 crore.

Segment Performance

Vehicle Finance (VF) disbursements in Q2 FY26 were ₹13,539.00 crore.

Asset Quality and Capital Adequacy

• Stage 3 assets (90+ days past due) were at 3.35% as of September 2025, compared to 3.16% at the end of June 2025.
• Gross Non-Performing Assets (GNPA) as per RBI norms stood at 4.57%, up from 4.29% in June 2025.
• Net Non-Performing Assets (NNPA) were at 3.07%, compared to 2.86% in the previous quarter.
• The Capital Adequacy Ratio (CAR) was 20.00%, well above the regulatory requirement of 15%.

Liquidity Position

CIFCL maintained a strong liquidity position with ₹16,991.00 crore in cash balance at the end of September 2025, including ₹6,661.00 crore in high-quality liquid assets (HQLA). The total liquidity position, including undrawn sanctioned lines, was ₹17,516.00 crore.

Management Commentary

The company's management noted that the Asset-Liability Management (ALM) remains comfortable with no negative cumulative mismatches across all time buckets.

Cholamandalam Investment and Finance Company Limited's performance in Q2 and H1 FY26 demonstrates continued growth across its diverse product segments, with particular strength in Vehicle Finance and Loan Against Property businesses. The company's focus on maintaining a strong capital position and liquidity buffer positions it well for future growth opportunities in the financial services sector.

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.