Chola Q1: consolidated PAT jumps 46% YoY to ₹1,656 Cr as credit costs stay benign

Cholamandalam Investment reported a strong Q1 FY27, with consolidated net profit rising 45.6% YoY to ₹1,656 Cr on revenue of ₹8,856 Cr (up 21.9% YoY). Profit outpaced the topline by more than 2x because the two swing lines behaved: finance costs grew just 15% YoY (₹3,468→4,007 Cr) even as the book expanded 23%, lifting net income 28% to ₹4,930 Cr, while impairment charges rose only 5% YoY (₹882→922 Cr). The result is clear YoY margin expansion — net profit margin widened to 18.7% from 15.5% a year ago — with no one-off items on either side; this is underlying operating leverage plus a falling credit-cost ratio, not accounting noise. Standalone tells the same story (PAT +45.6% to ₹1,654 Cr), so the two bases do not diverge.

The print sits near the top of the street's range (Univest previews put PAT at roughly ₹1,323–1,683 Cr) and comfortably clears management's own FY27 guidance: AUM grew 23% YoY to ₹2,54,392 Cr — the top end of the 20–23% guide — Vehicle Finance AUM rose 19% (vs the ~18% guided), and PBT-ROA came in at 3.7% against the ~3.5% target management set on the Q4 concall. That confirms rather than contradicts the confident, cautiously-optimistic tone from May. The quarter's one soft spot is asset quality: GNPA (RBI norms) edged to 4.50% from 4.36% and Stage-3 to 3.29% from 3.05% sequentially, and Stage-3 coverage slipped to 45.7% from 47.3%, though credit costs remained near the ~1.5% target.

The stock went into the print at ₹1,785.9, up 0.7% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 3 consecutive quarters; revenue is at a 6-quarter high.

Vehicle Finance AUM +19% YoY, LAP +23%, Home Loans +22%, SME +39% — broad-based across segments

Alongside results, the board approved a large ₹55,000 Cr NCD programme for FY27 funding, and the capital base continues to build via CCD conversions — ₹1,370 Cr converted in FY26 and a further ₹200 Cr in July 2026, with the residual ₹430 Cr due in October 2026 — leaving CAR at a healthy 19.81% and ROE at 21.2%.