CHOLAFIN's Q2 FY27 numbers came in strong, with revenue of Rs. 9,366.88 Cr (+23.41% YoY) and PAT growth of +41.09% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 28, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 9,366.88 Cr (+23.41% YoY) |
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| PAT (Q2) | Rs. 1,630.07 Cr (+41.09% YoY) |
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| EPS (Q2) | Rs. 19.09 (+39.00% YoY) |
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| Market cap | Rs. 133,132.85 Cr |
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| CMP | Rs. 1,558.10 |
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Quarter Snapshot
Cholafin delivered 47% YoY disbursement growth and 25% AUM growth, both above management's own FY27 guidance, with PAT up 41.09% YoY driven by declining credit costs and operating leverage. Asset quality improved (GNPA 4.44%, GS3 3.25%) though Stage-3 coverage slipped to 45.32%, and the board approved a Rs.5,000 Cr QIP to pre-fund the next growth leg. Execution against the FY27 ratio stack is on track across AUM, opex ratio, and credit cost at the half-year mark.
Key Investment Insights
Key Positives
- Disbursements grew 47% YoY to Rs.35,872 Cr in Q2 (H1 +34% to Rs.65,484 Cr), ahead of management's ~22% FY27 guidance
- AUM grew 25% YoY to Rs.2,68,009 Cr, above the guided 20-23% band
- Standalone PAT grew 41.09% YoY to Rs.1,630.07 Cr; EPS rose to Rs.19.09 from Rs.13.73
- Impairment declined 2.54% YoY and 5.18% QoQ; GNPA fell to 4.44% from 4.50% QoQ and 4.57% YoY
- Vehicle Finance segment result grew 41.74% YoY with margin up 327 bps to 20.49%; 'Others' segment result grew 188.77% YoY
- Gold loan AUM rose 61% QoQ to Rs.3,446 Cr against the Rs.5,000 Cr FY27 target; 308 dedicated gold branches at Sep-26 vs 119 at Mar-26
- CAR at 20.62% with Tier-1 at 16.02%; debt-equity improved to 6.72 from 7.24 YoY
- Opex ratio at 3.02% of average AUM, within the guided 3.0-3.1% band
Risk Factors
- Stage-3 coverage ratio slipped 41 bps QoQ to 45.32% from 45.73%
- Employee benefits expense rose 33.80% YoY and 24.80% QoQ, outpacing income growth
- Finance-cost-to-total-income ratio drifted up ~140 bps QoQ to 46.23%; Rs.2,000 Cr perpetual NCD priced at 8.97%
- LAP segment revenue fell 3.12% QoQ and result fell 17.97% QoQ, with LAP share of PBT at 25.4% vs management's 30-31% claim
- Net cash used in operating activities was Rs.19,806.20 Cr in H1, ~6x H1 PAT, funded by net financing inflows of Rs.20,736.91 Cr