Cholamandalam Q1 sees strong profit, flat disbursements

Murugappa Group’s NBFC, Cholamandalam Investment & Finance Company Ltd (CIFCL), has reported strong double-digit growth in net income and profit during the first quarter of this fiscal, despite flat disbursements.

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The Chennai-headquartered company posted a 21 per cent increase in profit after tax at ₹1,136 crore for the quarter ended June 30, 2025, compared to ₹942 crore in the year-ago quarter. This was despite higher expenses of ₹1,452 crore (₹1,183 crore) and loan losses of ₹882 crore (₹581 crore).

Total income grew by 26 per cent to ₹7,331 crore (from ₹5,828 crore), while net income increased by 27 per cent to ₹3,864 crore (from ₹3,033 crore), according to a statement.

Aggregate disbursements remained flat at ₹24,332 crore (₹24,325 crore), as the vehicle finance business saw only a single-digit rise during the quarter

In the vehicle finance business, disbursements grew by 7 per cent to ₹13,647 crore in Q1 FY2025 (from ₹12,766 crore in Q1 FY2024). Loan Against Property disbursements increased by 21 per cent to ₹4,705 crore (from ₹3,874 crore). Home loan disbursements saw a marginal decline to ₹1,764 crore (from ₹1,778 crore).

SME loan disbursements stood at ₹1,705 crore, down from ₹2,160 crore in Q1 FY2024. “This is due to a conscious decision to slow down certain low ROTA products in this segment,” the statement said.

Consumer and Small Enterprise Loans (CSEL) disbursements were lower at ₹2,046 crore (from ₹3,486 crore in Q1 FY2024). The decline was primarily due to the exit from the partnership business under CSEL.

Secured business and personal loan disbursements stood at ₹359 crore, up from ₹268 crore. The Gold Loan business was launched in Q1 FY2026 and disbursed ₹100 crore during the period.

Gross NPA rose to 4.29 per cent in Q1 FY2026, up from 3.62 per cent in Q1 FY2025 and 3.97 per cent in the March 2025 quarter. Net NPA increased to 2.87 per cent from 2.37 per cent in Q1 FY2025 and 2.63 per cent in the March quarter.

Assets under management grew by 23 per cent to ₹2,07,663 crore in Q1 FY2025 (up from ₹1,68,832 crore in the year-ago quarter).

The company maintained a strong liquidity position with ₹16,731 crore in cash as of June 2025 and a total liquidity position of ₹17,226 crore (including undrawn sanctioned lines). The ALM remained comfortable, with no negative cumulative mismatches across all time buckets, it said.

On Thursday, the company’s stock was trading at ₹1,435.50 per share, down 2.78 per cent on the BSE as of around 3:20 pm

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