Cholamandalam’s Profit in June Quarter Up by 9%

Chennai, August 8, 2025 – Cholamandalam Financial Holdings Limited (NSE: CHOLAHLDNG), the financial services division of the diversified conglomerate Murugappa Group, has announced its Q1FY26 earnings, which include a 9% year-on-year (YoY) rise in consolidated profit after tax (PAT) to ₹1,260 crore (detailed financial analysis follows). The company has also reported a strong revenue surge, which is backed by growth across lending, insurance and risk services segments.

On Friday, the stock closed at ₹1853.40 (0.23% higher than the previous day’s close). The share’s low-high range throughout the day was between ₹1829 and ₹1870. The traded volume was slightly higher than 4,75,000 shares. The company’s P/E ratio is 15.77 compared to the industrial average of 20.22. The stock has surged around 24% in the past six months.

Key Consolidated Financials

In Q1 FY26, the company reported revenue of ₹9,383 crore, marking a 22% YoY growth from ₹7,677 crore in Q1 FY25. Profit After Tax rose 9% while EPS increased 6% to ₹30.81. On a YTD basis, revenue climbed 28% to ₹33,460 crore, and PAT advanced 23% to ₹4,740 crore, indicating robust operational and financial performance.

Standalone Performance (CFHL)

In Q1 FY26, CFHL’s standalone performance showed strong growth, with income rising 41% YoY to ₹3.65 crore from ₹2.58 crore. Profit After Tax surged 52% to ₹2.11 crore compared to ₹1.39 crore in Q1 FY25. Net worth stood at ₹1,353.49 crore as of June 2025, marginally higher than ₹1,351.31 crore in March 2025, indicating steady financial stability alongside robust profitability growth.

Segment Highlights

Cholamandalam Investment & Finance reported flat YoY disbursements at ₹24,325 crore, with AUM rising 14% to ₹1,92,148 crore. Segment-wise, Vehicle Finance PBT grew 1%, Loan Against Property surged 39%, and Home Loans rose 11%. Cholamandalam MS General Insurance posted a 2.7% rise in premiums but a 20% drop in PAT due to a higher claims ratio. Cholamandalam MS Risk Services saw revenue climb 25%, with PAT improving sharply to ₹1.23 crore from ₹0.12 crore last year.

Management Commentary

The company attributed the solid revenue growth to a diversified financial services model and disciplined portfolio expansion. CIFCL’s AUM expansion, steady insurance penetration, and improving profitability in risk services supported consolidated earnings.

About the Company

Cholamandalam Financial Holdings Limited, part of the Murugappa Group, is a core investment company with holdings in lending (CIFCL), general insurance (CMSGICL), and risk services (CMSRSL). The company is listed on NSE and BSE and has a diversified presence across India.

REF:https://nsearchives.nseindia.com/corporate/CHOLAHLDNG_08082025142246_SEIntimationwithppt.pdf

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