Q2 FY27: strong loan growth, better asset quality and proposed capital raise
CHOLAFIN · price
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On the reaction day the stock moved 4.3 pts more than Nifty 100 and 6.0 pts more than its Non Banking Financial Company (NBFC) peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Q2 FY27 disbursements rose 47% to INR35,872 crore and loan assets increased 25% to INR268,009 crore. Return on equity improved to 19.4%, while gross non-performing loans eased to 4.44%. The Board approved raising up to INR5,000 crore. Management targets a 2.8% operating expense ratio over two to three years and over 4% pre-tax return on assets in new businesses over the medium term.
Strong growth and better credit quality support earnings, but the proposed fundraise may dilute shareholders and weigh on the stock until clear.