Cholamandalam Investment and Finance Company Limited
Cholamandalam Financial Holdings Limited, an investment company, provides financial services in India. It operates through Financial Services, and Insurance and Allied Services segments. The company provides vehicle finance, loan against property, home, and small and medium-sized enterprise loans, as well as secured, business and personal, and consumer and small enterprise loans, and general insurance services.
Business Segments
Cholamandalam Investment & Finance Company Ltd (Chola FIN) as presented in its 2024–25 Annual Report (FY ending March 31, 2025), with figures from the FY25 disclosures:
Revenue Mix H1FY25
- Vehicle Finance: 60–63%
- LAP: 20–22%
- Home Loans: 5–10%
- CSEL: 7–8%
- SME Loans: 4–5%
- SBPL: <1%
Shareholding Pattern
Financial Summary
| Particulars | Mar-23 | Mar-24 | Mar-25 |
| Revenue – | 12,884 | 19,163 | 25,846 |
| Sales Growth % | 26.97% | 48.73% | 34.87% |
| Interest | 5,748 | 9,231 | 12,495 |
| Expenses | 3,621 | 5,385 | 7,672 |
| Financing Profit | 3,515 | 4,548 | 5,680 |
| EPS in Rs | 32.42 | 40.72 | 50.69 |
Synopsis of Financials
- PAT rose 20% YoY to ₹1,267 crore.
- ROE improved to 22.2%, reflecting strong profitability.
- AUM grew 30% YoY to ₹1.99 lakh crore, driven by rapid disbursement across segments.
- Asset quality improved: GNPA at 2.8%, down 10 bps QoQ.
- Liquidity position strong at ₹15,000 crore; Capital Adequacy Ratio (CAR) at 19.8%.
- Expansion plans include deeper push into LAP and upcoming gold loans.
- EPS estimates upgraded by 3% for FY26 and 5% for FY27.
- Chola remains a high-growth, high-ROE franchise with improving credit costs and a clean loan book.
Final Outlook
The Cholamandalam Investment & Finance Company (Chola) delivered a strong Q4FY25, reinforcing its position as a high-growth NBFC with robust fundamentals. PAT rose 20% YoY to ₹1,267 crore, driven by diversified lending and disciplined cost management. AUM surged 30% YoY to ₹1.99 lakh crore, with stable asset quality (GNPA at 2.8%) and a healthy ROE of 22.2%. With a strong capital adequacy ratio of 19.8% and liquidity buffer of ₹15,000 crore, Chola is well-equipped to scale its presence in LAP, SME, and the upcoming gold loan segment. EPS estimates for FY26/27 have been raised by 3%/5%, reflecting strong earnings visibility, clean book, and operating leverage. Chola remains a compelling play on India’s rising retail credit demand.
Chola’s strong Q4FY25 results highlight its growth leadership in retail lending, with rising profitability, improving asset quality, and a solid capital position. Continued expansion into new segments supports long-term earnings momentum.
