Quarter Ended: March 2026
Cholamandalam Investment and Finance Company Ltd – Q4 FY26 Results
NSE
cholafin
BSE
511243
The company delivered strong YoY and QoQ profit growth, driven by higher lending volumes and income expansion, although operating cash flow remains negative (typical for NBFCs due to loan book growth)
key financial highlights
- Revenue from Operations:
- Revenue (Q4 FY26): ₹8,563.54 Cr
- QoQ Change: +6.9%
- YoY Change: +19.9%
- Previous Quarter (Q3 FY26): ₹8,008.68 Cr
- Previous Year (Q4 FY25): ₹7,136.87 Cr
- Revenue (Q4 FY26): ₹8,563.54 Cr
- Profit After Tax (PAT):
- PAT (Q4 FY26): ₹1,645.20 Cr
- QoQ Change: +27.6%
- YoY Change: +30.6%
- Previous Quarter (Q3 FY26): ₹1,289.97 Cr
- Previous Year (Q4 FY25): ₹1,259.54 Cr
- PAT (Q4 FY26): ₹1,645.20 Cr
- QoQ Performance:
- Revenue Trend: Moderate Growth
- Profit Trend: Strong Growth
Margin Analysis
Key Drivers:
- Strong growth in interest income
- Controlled operating expenses
- Stable credit cost environment
Key Signal: Margin expansion supported profitability despite rising scale
Earning quality check
Drivers:
- Core income driven by lending growth (interest + fee income)
- Limited dependency on one-off gains
- Stable impairment provisioning trend
Interpretation:
- Earnings quality is high, as growth is largely core-operational (loan book driven) rather than non-recurring items
balance sheet Analysis
- Total Assets: ₹2,45,448 Cr
- Total Liabilities: ₹2,14,624 Cr
Insight:
- Strong balance sheet expansion (~21% YoY approx)
- Loan book growth is the primary driver
- Leverage remains inherent to NBFC model but manageable
Cash flow analysis
- Operating Cash Flow: -₹30,020 Cr
- Investing Cash Flow: -₹2,554 Cr
- Financing Cash Flow: +₹35,610 Cr
Interpretation:
- Negative operating cash flow is not a red flag here
- It reflects loan disbursement growth (core NBFC business)
- Funding supported via borrowings and capital markets
key risks
- Rising credit costs if asset quality deteriorates
- High dependence on borrowing markets
- Interest rate volatility impacting margins
- Negative operating cash flow (structural NBFC characteristic)
management strategy signals
Focus Area:
- Aggressive loan book expansion
- Diversification across retail segments
- Maintaining asset quality
- Strengthening liability franchise
Financial metrics table
| Particular | Q4 FY26 | Q.O.Q | Y.O.Y |
|---|---|---|---|
| Total Income | ₹8,563.54 Crore | +6.9% | +19.9% |
| PBT | ₹2,143.12 Crore | +23.5% | +26.2% |
| PAT | ₹1,645.20 Crore | +27.6% | +30.6% |
Cholamandalam continues to deliver strong, consistent growth with high-quality earnings, backed by loan book expansion. While cash flows appear negative, this is structurally normal for NBFCs. Overall, the results reflect a healthy growth trajectory with controlled risks
Official Exchange Filing: Cholamandalam Investment and Finance Company Ltd
Quarterly Performance Context
COST OF OPERATIONS AS % OF REVENUE
75%
NET PROFIT AS % OF REVENUE
19%
FISCAL YEAR
2025-2026
AUDIT STATUS
REVIEWED