Beat guidance, but macro clouds gathering

Revenue up 21.9% YoY; management admitted like-for-like growth ~20% after accounting change

Revenue up 21.9% YoY; AUM growth 23% at upper end of guidance is supported by strong top-line growth

PAT up 45.6% vs revenue 21.9%, with OPM 70% and NIM up 42 bps, supports exceptional ROA improvement

PAT outgrowth (45.6%) far exceeds revenue (21.9%), indicating strong cost control and asset quality

Cost of funds down, but NPM stable at 18.5%; NIM improvement consistent with reported OPM 70%

Reduces reported growth ~2% (22%→20% like-for-like), more conservative. No guidance change; impacts normalise next quarter.

Opened branches, ₹2,143 Cr AUM in Q1, targeting ₹5,000 Cr by year-end (360 branches). 90% new customers, 16-17% yields (above company 18.5%).

NCL cut 2% (6.7%→4.7%) post-fintech exit. ROA 3.3% in Q1 (vs 3% expected Q3). Disbursements >30% growth. Path to group-beating ROA clear.

Achieved 1.5% already in Q1 (was FY27 target). GNPA up 25 bps seasonal (vs 45 bps last year). All business lines strong in July, no macro impact visible.

Q4→Q1 seasonal jump expected, but only 25 bps this year vs 45 bps prior year. Net delinquency improved 20 bps YoY. LAP NCL at 0.3% annualized, stable.

Overall cost of funds may rise 10 bps, but neutral for FY27 (H1 low, H2 higher). Assuming 25-50 bps repo hike. NIM will improve despite rate rise.

Pronounced in LAP/HL due to registration lag. Like-for-like HL/LAP ~20%. AUM growth metric better (unaffected by timing). Normalises next quarter onwards.

23% AUM achieved in Q1, doable for year. Market buoyant, market share gains visible. NIM hold likely; cost of funds flat, yields improving (CSEL, gold loans mix). IRDAI insurance circular risk TBD.

Seasonality plays role, but even after seasonal jump, delinquency improved YoY (Stage 2 -33 bps, Stage 3 +13 bps = net -20 bps). 94% current; comparable to peers.

3.5% is minimum guidance. Delivered 3.7% in Q1 due to 3 factors: lower credit costs, lower cost of funds, higher income. Need conservativeness; not committing higher.

Pattern correct historically, but different scenario with El Niño, war, tariffs. Can predict 1-2 quarters; longer-term uncertain. Will continue current momentum.

90% of gold loan customers new to Chola. ~₹700-800 Cr of existing customers have gold loans elsewhere; focusing open market for now. Yields 16-17% range.

22% achieved in Q1 (like-for-like ~20%), market momentum strong, all segments performing. Q2 expected strong; Q3-Q4 base effect headwinds but market buoyancy offsets.

Cost of funds neutral for FY27 (25-50 bps rate hike priced). Mix improving (CSEL, gold loans). NIM expansion likely but IRDAI insurance circle risk TBD.

Stage 3 up 13 bps YoY to 3.29%, GNPA up 25 bps. Currently attributed to seasonality, but monsoon failure or geopolitical escalation could slip recovery rates and force provision increases.

Weak monsoons (92% vs 96% normal) could impact MSME/agricultural lending. West Asia crisis, US-China tariffs add uncertainty. RBI rate hikes risk cost of funds (MCLR-linked debt could rise faster).

Move to cheque clearance (vs handover) reduces reported disbursement growth ~2%, inflates yields (lower AUM denominator). Like-for-like growth ~20% vs reported 22%. Creates one-time disclosure confusion.

Gold loan business nascent (₹2,143 Cr AUM). Target ₹5,000 Cr by FY27 aggressive. 90% new customers untested. CSEL post-fintech exit still at 3.3% ROA (below company 3.7%).