Intimation on upload of transcript of Earnings call in Company''s website.
CHOLAFIN · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Cholamandalam Investment and Finance Company (Chola) reported strong Q4 FY '26 performance with aggregate disbursements of INR 32,913 crores (25% YoY growth) and AUM of INR 2,42,630 crores (21% growth). Vehicle Finance grew 26% YoY, while the new Gold Loan business disbursed INR 1,130 crores in its first full quarter. NIMs improved by 40 bps YoY due to lower cost of funds, and credit costs declined by 20 bps. The company took a precautionary management overlay of INR 200 crores citing global uncertainties, without changing its core PD-LGD assumptions. ROA improved to 4.1% (before overlay) from 3.6% in Q4 FY '25, with ROE at 23%. For FY '27, management guided for AUM growth of 20-23% and expects net credit cost to improve from 1.6% to 1.5%, with pre-tax ROTA approaching 3.5%.
The earnings call reflects a company with strong disbursement momentum across all business segments, improving asset quality, and prudent risk management through the precautionary overlay. Management guidance for FY '27 of 20-23% AUM growth and improving credit costs signals sustained profitability, though investors should note the cautious near-term credit cost target of 1.5% versus historical lows of 1.0-1.4%.