CHOLAMANDALAM FIN HOL LTD

Operates as a holding company for two financial services businesses: lending through Chola Investment and Finance Company, and general insurance through Chola MS General Insurance. Financing contributed 78.6% of FY26 segment revenue at ₹31,073.15 crore with segment EBIT of ₹6,973.04 crore, while general insurance contributed 21.1% at ₹8,351.78 crore with segment EBIT of ₹341.56 crore. The general insurance business focuses on motor (cars, commercial vehicles, two-wheelers), crop, and other lines, with a motor market share of 5.25%. The motor portfolio composition has shifted toward cars (49%+) while the two-wheeler share was deliberately reduced from 19.6% to 10.6%. The group operates 1,909 offices across India with 53,503 permanent employees. Employee cost is the largest input at 12% of revenue, with other operating expenses at 23.8%. The insurance segment faced pressure in FY26 with a combined ratio of 115.2% (112.2% ex-1/n), driven by a claims ratio of 81.3% and a ₹590 crore loss on a crop insurance re-tender. Management has implemented a 7-8% motor own-damage pricing correction over the last 2-3 months to address rising loss ratios, and is seeking forbearance to transition to IFRS from April 2027. The medium-to-long-term ROE target of 15%+ is maintained.