India's One of the Largest Vehicle Finance NBFCs Reports 22% YoY Growth in Q1 FY27 Profit; Board Approves Rs 55,000 Crore NCD Fundraising Plan

On Tuesday, Indian equity benchmark indices ended marginally lower, with the benchmark Nifty 50 index declining 7.15 points, or 0.03 per cent, to 23,988.80. Meanwhile, Cholamandalam Investment and Finance Company share price declined 1.38 per cent to Rs 1,760.60.

Cholamandalam Investment Q1 FY27 Standalone Results

On a standalone basis, total income increased 21.86 per cent YoY to Rs 8,932.95 crore in Q1 FY27 from Rs 7,330.78 crore in the corresponding quarter last year.

Profit Before Tax (PBT) rose 45.16 per cent YoY to Rs 2,220.49 crore, compared with Rs 1,529.64 crore in Q1 FY26. Profit After Tax (PAT) increased 45.58 per cent YoY to Rs 1,653.59 crore from Rs 1,135.91 crore in the year-ago quarter. Basic earnings per share (EPS) improved to Rs 19.40 from Rs 13.51 in the corresponding quarter last year.

Board Approves Rs 55,000 Crore NCD Fundraising

The Board of Directors approved raising up to Rs 55,000 crore through the issuance of secured and/or unsecured non-convertible debentures (NCDs) in one or more tranches on a private placement basis, subject to applicable statutory and regulatory approvals. The company said the detailed terms of each issuance will be disclosed at the time of allotment.

Business Performance

The company's lending business continued to witness healthy growth across major segments during the quarter.

Vehicle Finance remained the largest contributor with segment revenue of Rs 4,596.50 crore, followed by Loan Against Property at Rs 1,714.48 crore, Others at Rs 1,411.92 crore, and Home Loans at Rs 910.36 crore. Vehicle Finance also contributed the highest segment profit before tax of Rs 944.89 crore, while Loan Against Property generated Rs 677.98 crore and Home Loans contributed Rs 268.76 crore.
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Asset Quality Remains Stable

The company maintained a healthy balance sheet during the quarter. As per RBI norms, Gross NPA stood at 4.50 per cent, while Net NPA was 2.95 per cent. The Capital Adequacy Ratio remained strong at 19.81 per cent, and the Liquidity Coverage Ratio stood at 193.61 per cent, reflecting a comfortable capital and liquidity position.

About Cholamandalam Investment

Cholamandalam Investment and Finance Company Ltd, a part of the Murugappa Group, is one of India's leading non-Banking financial companies (NBFCs). The company offers a diversified range of financial products, including vehicle finance, loan against property, home loans, SME loans, secured business loans and consumer financing solutions.

The company has built a strong nationwide presence with a diversified lending portfolio and a technology-driven distribution network. It continues to focus on expanding its retail lending franchise while maintaining prudent risk management and healthy asset quality across its businesses.

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Disclaimer: The article is for informational purposes only and not investment advice.