Cholamandalam Investment and Finance Company (CIFCL), the Murugappa Group’s flagship non-banking finance company, has reported a 41% year-on-year rise in net profit to ₹1,630 crore for the July–September quarter of FY27 (Q2 FY27), up from ₹1,155 crore a year earlier. Alongside the results approved on 28 October 2026, the board cleared a Qualified Institutions Placement (QIP) of up to ₹5,000 crore to strengthen its capital base for the next leg of growth.
For the first half of FY27, profit after tax stood at ₹3,284 crore, a 43% increase over H1 FY26. Net income for the quarter rose 24% to ₹5,037 crore, while profit before tax climbed 40% to ₹2,188 crore.
Disbursements accelerate 47%
Aggregate disbursements grew 47% year-on-year to ₹35,872 crore in Q2, taking the H1 tally to ₹65,484 crore. Assets under management rose 25% to ₹2,68,009 crore as of 30 September 2026.
Vehicle finance, the lender’s largest franchise, disbursed ₹17,801 crore in the quarter, with its AUM growing 21% to ₹1,29,787 crore. Loans against property disbursed ₹6,438 crore, taking that book up 24% to ₹57,447 crore, and home loans grew 24% to an AUM of ₹25,240 crore.
The newer and smaller businesses expanded faster. The SME loan book grew 45% to ₹10,943 crore, consumer and small enterprise loans rose 23% to ₹17,216 crore, and secured business and personal loans climbed 35% to ₹3,966 crore. The gold loan business, which now operates through 308 dedicated branches, disbursed ₹1,960 crore in the quarter and closed September with an AUM of ₹3,446 crore.
Returns improve, asset quality edges better
Return on equity for the quarter stood at 19.43%, against about 18.1% a year ago, while PBT return on assets improved to 3.4% from 3.0%. Net interest margin was maintained at 7.9%, according to the company’s investor presentation.
Asset quality improved marginally on a sequential basis. Stage 3 assets (90+ days past due) eased to 3.25% from 3.29% at the end of June, while gross NPA under RBI norms fell to 4.44% from 4.50% and net NPA to 2.92% from 2.95%. Net credit losses for the quarter were 3% lower year-on-year at ₹874 crore.
₹5,000 crore QIP to fund growth
The company’s capital adequacy ratio stood at 20.62% at the end of September, against a regulatory requirement of 15%, with Tier-I capital at 16.02%. The conversion of compulsorily convertible debentures into equity was completed during the quarter. The proposed QIP of up to ₹5,000 crore, which may be raised in one or more tranches subject to approvals, gives the NBFC additional headroom as disbursements run well ahead of AUM growth.
Liquidity remains comfortable: CIFCL held ₹21,352 crore in cash balances at the end of September, including high-quality liquid assets of ₹7,745 crore, and reported total liquidity of ₹21,974 crore with no negative cumulative mismatches across time buckets.
Led by Managing Director and CEO Ravindra Kumar Kundu and Executive Chairman Vellayan Subbiah, Chola’s numbers come at a time when tighter system liquidity and rising certificate-of-deposit rates are lifting funding costs for non-bank lenders, making its capital raise and liquidity buffer especially relevant for the quarters ahead. Shares of the company traded about 5% higher after the announcement.
