Cholamandalam Investment and Finance Company (Chola) is one of India's largest NBFCs, lending across vehicle finance, loans against property, home loans, SME and consumer loans, with AUM of Rs. 2,54,392 Cr at the end of Q1 FY27. The Q2 print will test whether the seasonal asset-quality uptick reverses as management projected, and whether the guided ~22-23% growth path holds through a record festive auto-retail quarter shadowed by the worst monsoon since 2015.
| Results date | October 28, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter total income | Rs. 8,932.95 Cr |
| Previous quarter PAT | Rs. 1,653.59 Cr (+46% YoY) |
| Previous quarter NIM | 8.2% |
| Previous quarter AUM | Rs. 2,54,392 Cr (+23% YoY) |
| Market cap | Rs. 124,871.34 Cr |
| CMP | Rs. 1,463.8 |
The board meets on October 28, 2026 to consider the Q2/H1 FY27 results; the trading window was shut from October 1 to October 30, 2026. The QIP and postal ballot for capital raising have been added to the same October 28 board agenda.
The Q2 FY27 earnings call is scheduled for October 28, 2026 at 16:00 IST, organized by Kotak Institutional Equities.
The quarter's central test is asset quality: gross Stage 3 rose to 3.29% in Q1 FY27 from 3.05% in Q4 FY26, and management said it is "confident about Q2 and Q3, expecting further improvement in credit cost" — the Q2 print will show whether that seasonal reversal actually lands. Demand ran hot through the quarter, with FADA retail totals of 25,91,138 units in July (+25.89% YoY), 24,23,201 in August (+17.51% YoY) and 25,36,920 in September (+31.82% YoY), and September CV retail crossing 1 lakh units in a September for the first time — a first-order positive for Chola's largest book, Vehicle Finance, which held Rs. 124,131 Cr of segment assets at Jun-26. The offset is rural: the June-September monsoon ended at 87% of LPA, the worst since 2015, and FADA flagged the September tractor print (76,906 units, +13.75% YoY but -12.58% MoM) as soft on patchy monsoon — a collections headwind for the rural secured book. On funding, the repo was held at 5.25% all quarter, but the 10-year G-sec rose to 7.05% by September 21 and system liquidity drained roughly 60% from its early-September peak, testing management's "flat cost of funds" call and its cap of not more than 5-10 bps of repo-hike impact. The FY27 guidance stack reaffirmed on July 28 — AUM growth ~23%, disbursement growth ~22%, NIM ~8%, net credit cost ~1.5%, PBT-ROTA at least 3.5% — remains broadly consistent with the quarter's external data, though the HL & LAP 25%+ asset-growth guide lagged at Q1 (17%/23% YoY) and needs to close the gap. The same-day QIP decision on October 28 will also draw attention against management's earlier "self-sufficiency via internal accruals" framing, with Tier-1 at 14.81% at Jun-26.
FY27 guidance scorecard entering Q2: Status of the guidance stack reaffirmed on the July 28, 2026 Q1 call:
Asset quality trajectory after the seasonal Q1 uptick
QIP outcome on results day
Cost of funds vs the "flat full-year" call
Gold loan ramp and branch execution
An analyst had flagged Chola's VF trends as looking a little inferior versus peers, with VF Stage 3 at 4.17% in Q3 FY26. Management attributed this to the full vehicle mix (HCV, LCV, SCV, tractor, new, used), denied any geographic or product concentration, and pointed to Stage 2 falling from 3.96% to 3.61% as a leading indicator.
CFO Arul Selvan laid out a Tier 1 ~13% trigger for evaluating equity raising, with self-sufficiency via internal accruals at ~3.5% pre-tax ROTA and growth below 23-25%. A QIP proposal was subsequently placed on the October 28, 2026 board agenda, with size and pricing not disclosed.
From Q1 FY27, disbursements are recognized on debit into the customer's bank account instead of sanction or cheque handover, which management described as a more conservative basis. Management confirmed that like-to-like growth remains over 20%.
Yes — the FY27 net credit cost target of ~1.5% was achieved in Q1 FY27 itself, and management stated that "by end of this financial year, it will only improve." The pre-tax ROTA target of at least 3.5% was also exceeded with 3.7% in Q1.
Standalone PAT was Rs. 1,653.59 Cr in Q1 FY27, up 46% YoY from Rs. 1,135.91 Cr, with disbursements of Rs. 29,612 Cr up 22% YoY. ROA improved to 3.7% from 3.1% and ROE stood at 21.2%.