CHOLAFIN - Cholaman.Inv.&Fn

📊 NSE: CHOLAFIN 🏢 Finance & Investments 📅 Last Updated: 12/13/2025 21:04

💰 Financial Performance

Revenue Growth by Segment

Vehicle Finance (VF) saw mixed growth in Q2 FY26 with LCV up 14% and SCV up 2%, while PV de-grew 1%. Loan Against Property (LAP) disbursements grew 8% YoY to INR 4,630 Cr, with AUM growing 21.5% YoY to INR 41,460 Cr. Home Loans (HL) net income grew 13% YoY to INR 872 Cr. MSME ecosystem disbursements were flat at INR 6,597 Cr in Q2 FY26.

Geographic Revenue Split

The company has a significant rural focus with 85% of its 1,577 branches located across Tier III to Tier VI cities in 29 states, driving revenue from underpenetrated markets.

Profitability Margins

Consolidated PAT for FY25 was INR 4,462.72 Cr, a 30.5% increase from INR 3,420.05 Cr in FY24. Home Loans Net Income Margin stood at 10.1% in Q2 FY26, down from 10.7% in Q2 FY25. ROA-PBT for the HL segment was 2.6% in Q2 FY26.

EBITDA Margin

PBT for FY25 was INR 5,737 Cr, up 25.2% from INR 4,582 Cr in FY24. PBT ROA at a company level was 3% in Q2 FY26, maintaining sequential stability.

Capital Expenditure

Not disclosed in available documents; however, the company added 10,872 net employees in FY25 to support expansion.

Credit Rating & Borrowing

Maintains [ICRA]AA+ (Positive) and [ICRA]A1+ ratings. Cost of funds remained stable at 7.3% in Q2 FY26. Total borrowings grew 34% YoY to INR 1,48,280 Cr as of March 2025.

⚙️ Operational Drivers

Raw Materials

Capital/Debt (100% of input cost for lending operations).

Import Sources

Not applicable for financial services.

Key Suppliers

Banks and financial institutions provide fund-based facilities (e.g., INR 4,000 Cr fund-based limits from banks).

Capacity Expansion

Current network of 1,577 branches as of December 2024. Recent expansion focused on North and East India including UP, Bihar, West Bengal, Orissa, Assam, and Jharkhand.

Raw Material Costs

Cost of funds was 7.3% in Q2 FY26. Interest expenses (finance charges) for the HL segment grew 23% YoY to INR 1,246 Cr in H1 FY26.

Manufacturing Efficiency

Not applicable; productivity enhancements are pursued through process optimization and a low-cost branch operating model.

Logistics & Distribution

Not applicable for financial services.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Achieving growth through deeper rural penetration (Tier III-VI), scaling new business verticals like CSEL (Consumer and Small Enterprise Loans) and SME finance, and launching digital-first products like D2C lending and Gold Loans (INR 500 Cr disbursement in Q2 FY26).

Products & Services

Vehicle loans (CV, PV, Used), Loan Against Property (LAP), Home Loans (affordable segment), MSME loans, Gold Loans, and Consumer Durable loans.

Brand Portfolio

Chola, Cholamandalam, Murugappa Group.

New Products/Services

Gold Loans (disbursed INR 500 Cr in Q2 FY26), Consumer Durables vertical, and D2C digital lending.

Market Expansion

Expansion into underserved rural areas and strengthening presence in North and East Indian states.

Market Share & Ranking

Not disclosed in available documents, though the company aims to reach 'at par with the best' in segments like Maruti passenger vehicles.

Strategic Alliances

Joint venture with Payswiff Technologies; associates include White Data Systems, Vishvakarma Payments, and Paytail Commerce.

🌍 External Factors

Industry Trends

NBFC retail growth moderated to 18% in FY25 from 29% in FY24. LAP segment is expected to grow 21-23% in FY26 driven by property ownership trends.

Competitive Landscape

Competes with banks and other NBFCs in the vehicle and housing finance sectors.

Competitive Moat

Sustainable moat derived from the Murugappa Group heritage and an extensive physical distribution network in Tier III-VI cities (85% of branches), which are difficult for larger banks to penetrate efficiently.