Cholamandalam Financial Holdings' Q2 FY 2025-26 Quarterly Results

Result Summary

• Cholamandalam Financial Holdings Ltd reported a 2.2% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 17.2%.
• Its expenses for the quarter were up by 3.8% QoQ and 16.8% YoY.
• The net profit decreased 3.6% QoQ and increased 7.9% YoY.
• The earnings per share (EPS) of Cholamandalam Financial Holdings Ltd stood at 29.28 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

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Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Cholamandalam Financial Holdings Ltd is a prominent player in the financial services sector, primarily operating in the non-banking financial company (NBFC) space in India. The company is known for offering a wide range of financial services, including vehicle finance, home loans, and corporate mortgage loans, among others. It is part of the Murugappa Group, a well-established business conglomerate in India. The company focuses on providing tailored financial solutions to a diverse customer base, ranging from individuals to small and medium enterprises. In recent years, Cholamandalam has been working towards expanding its digital footprint and enhancing its customer experience through technology-driven solutions. As of now, there is no specific recent major development provided in the data.

Revenue

In the second quarter of the fiscal year 2026 (Q2FY26), Cholamandalam Financial Holdings Ltd reported a total income of ₹9589.20 crores. This represents a quarter-over-quarter (QoQ) increase of 2.2% from the previous quarter (Q1FY26), where the total income was ₹9382.95 crores. Additionally, there is a notable year-over-year (YoY) increase of 17.2% compared to the same quarter in the previous fiscal year (Q2FY25), which recorded a total income of ₹8180.15 crores. These figures highlight the company's capacity to grow its revenue base over both short and long-term periods. The steady increase in total income reflects the company's ability to capture additional market opportunities and potentially expand its service offerings.

Profitability

The profitability metrics for Cholamandalam in Q2FY26 show a profit before tax of ₹1629.78 crores, which is a decrease of 3.8% on a QoQ basis from ₹1694.76 crores in Q1FY26. However, when compared YoY, there is a growth of 7.8% from the ₹1511.57 crores reported in Q2FY25. The tax expense for the quarter amounted to ₹417.49 crores, down 4.4% from the previous quarter, but up 7.8% from the previous year. Consequently, the profit after tax stands at ₹1214.27 crores, which is a decline of 3.6% QoQ from ₹1259.54 crores, although it shows an increase of 7.9% YoY from ₹1125.24 crores. The earnings per share (EPS) for the quarter is ₹29.28, reflecting a decrease of 5.0% from the previous quarter's EPS of ₹30.81, while showing a YoY increase of 4.6% from ₹27.99.

Operating Metrics

The total expenses for Cholamandalam in Q2FY26 amounted to ₹7062.06 crores, reflecting a QoQ increase of 3.8% from ₹6805.95 crores in Q1FY26 and a YoY increase of 16.8% from ₹6046.34 crores in Q2FY25. Despite the rise in expenses, the company has managed to maintain a positive trajectory in income growth, as evidenced by the substantial increase in total income. The financial data indicates that while the company is experiencing growth in expenses, it is also managing to achieve revenue growth, which is crucial for sustaining its financial health. The analysis of these operating metrics offers insight into the company's cost management strategies and operational efficiency.