Record PAT growth masks cautious forward view — cost tailwinds may not repeat
Reported PAT surged 45.6%, beating ROA guidance at 3.7% vs 3.5% target. But the exceptional growth was driven by cost control and NIM expansion, an accounting timing shift, and benign seasonal asset quality — conditions management is explicitly hedging won't persist through the monsoon and rate cycle.
₹1,656.2 Cr
+45.6% YoY
₹8,856.3 Cr
+21.9% YoY
3.7%
beat 3.5% target
23% YoY
upper end of guidance
Cholamandalam's Q1 result sits on a paradox: reported profit surged 45.6%, beating ROA guidance and hitting AUM targets. Yet management spent the call hedging forward visibility, explicitly cautious on macro headwinds (monsoons, rate hikes, geopolitical risks) and refusing to raise guidance despite the beat. The exceptional profit growth was driven by operating leverage — cost control and NIM expansion — not top-line expansion. That confluence may not hold through the year.
Where the PAT surge really came from
Revenue grew 21.9% YoY, a solid result. But PAT grew 45.6% YoY — more than double the top-line growth rate. This exceptional operating leverage came from three sources: NIM expansion of 42 bps (driven by lower cost of funds), credit costs declining to 1.5% in Q1 (a full-year target hit early, due to benign seasonal asset quality), and a 70% operating margin (stable, but high in absolute terms). Net profit margin held at 18.5%, masking the underlying NIM gain. The risk is clear: if seasonal asset quality normalizes, credit costs rise toward historical levels, or RBI rate hikes accelerate, this exceptional profit leverage disappears.
Management's key claims — what holds up
Disbursements up 22% YoY
OverstatedLike-for-like growth after accounting change (~20%) vs. reported 22%. Moved to cheque clearance from handover, creating ~2pp timing boost.
AUM expanded 23% YoY to ₹2,54,392 Cr
SupportedRevenue +21.9% YoY supports strong top-line growth. AUM metric unaffected by accounting timing.
ROA increased to 3.7% from 3.1% YoY
SupportedPAT +45.6% vs revenue +21.9%, with OPM 70% and NIM +42 bps, fully supports ROA beat.
Credit costs declined to 1.5%, achieving FY27 target in Q1
SupportedPAT outgrowth (45.6%) far exceeds revenue (21.9%), indicating strong cost control. Seasonal Q1 asset quality aided.
NIMs improved 42 bps YoY, supported by lower funding costs
SupportedOPM 70% and cost of funds down (NPM stable at 18.5%). NIM improvement consistent.
What changed this quarter
Disbursement accounting shift: Moved from cheque handover to cheque clearance, a more conservative approach that delays reported growth ~2 percentage points (like-for-like HL/LAP ~20% vs. reported 22%). Transparent on the call; normalizes next quarter onwards. Disclosure noise, not fundamental.
Gold loan acceleration: New business launched with ₹2,143 Cr AUM in Q1, targeting ₹5,000 Cr by FY27 end (360 branches planned). 90% of customers new to Chola; yields 16-17% (above company 18.5% average). An upgrade if execution holds — untested at scale.
CSEL recovery inflection clear: Post-fintech exit, net credit losses cut sharply from 6.7% to 4.7% YoY. ROA improved to 3.3% in Q1. Disbursements >30% growth. Path to group-beating ROA visible; another upgrade, contingent on macro stability.
Beat ROA guidance 3.7% vs 3.5% — core metrics on track
Hit AUM growth 23%, at upper end of 20-23% guidance
Achieved credit cost target 1.5% in Q1 (full-year milestone reached early)
NIM +42 bps, cost of funds declining — spread tailwinds intact
Gold loan ramp (₹2.1 Cr→₹5 Cr target) and CSEL recovery are genuine strategic upgrades
PAT growth (45.6%) far exceeds revenue growth (21.9%) — operating leverage is cost/NIM, not business
Monsoon forecast 92% vs 96% normal — H2 asset quality and MSME exposure at risk
QoQ PAT growth only 0.7% despite strong portfolio growth — seasonal headwinds or Q4 anomaly?
Management explicitly cautious on FY27 forward guidance (not raising despite beat) — hedging macro risk
Rate hike cycle: if RBI exceeds 25-50 bps assumption, MCLR-linked debt (~12-15% of borrowing) will spike
FII ownership trimmed 0.42pp QoQ — possible profit-taking post-result rally
Stage 3 NPAs up 13 bps YoY (to 3.29%); manageable but trending wrong
Risks, ranked by how much they should concern a holder
Monsoon failure and MSME asset quality deterioration
HighForecast 92% of normal vs 96% typical. Weak monsoons directly hit MSME/agricultural borrowers (LAP, SME, SBPL represent ~40% of AUM). If rains fail, collateral values, farmer cash flow, and recovery rates deteriorate. Stage 3 NPA already up 13 bps YoY; monsoon shock could accelerate defaults beyond 1.5% credit cost assumption.
Rate hike cycle faster than 25-50 bps assumption
HighManagement assumes RBI hikes 25-50 bps total in FY27. MCLR-linked bank debt is 25-30% of total borrowing (~₹12-15% of ₹50% total). If hikes exceed 75+ bps, cost of funds rises faster than guided, squeezing NIM expansion and offsetting yield gains from gold loans and CSEL.
Operating leverage reversal: credit costs normalize, cost of funds rises
HighQ1's exceptional PAT growth (45.6% vs revenue 21.9%) was built on seasonal Q1 asset quality (6% delinquency, 94% current — lowest of year) and lower cost of funds (pre-rate-hike benefit). As year progresses and monsoons play out, both tailwinds could reverse. Return to historical credit cost levels (1.6-1.8% range) and higher cost of funds would deflate PAT growth back toward revenue growth rates.
Geopolitical escalation (West Asia, US-China tariffs)
MediumManagement explicitly flagged 'El Niño, war, tariff issues' as a 'different scenario' with 1-2 quarter visibility. Supply chain shocks, tariff-driven inflation, or geopolitical escalation could depress corporate credit demand, tighten MSME cash flow, or trigger SARFAESI asset liquidations at distressed valuations.
Disbursement accounting normalization masks growth
LowQ1's 22% reported growth includes ~2pp from cheque clearance accounting shift. Like-for-like is ~20%. Q2 onwards, gap normalizes, and reported growth will appear lower even if underlying momentum is stable. Could trigger false negative surprise if market misses accounting normalization.
Gold loan execution and CSEL scaling at risk
LowGold loan is new (₹2.1 Cr AUM in Q1), targeting ₹5 Cr by FY27 end — 2.3x growth on 360 branches. 90% of customers new to Chola; repayment behavior untested. CSEL post-fintech exit (3.3% ROA) still underperforms group (3.7% ROA). If either product fails to scale or asset quality deteriorates, it will be drag on growth and margin expansion.
How the street is positioned — price, flows, and valuation
The stock reacted positively to Q1 result: day-1 +2.85%, widening to day-3 +5.53% and day-5 +6.96% — the pop held and expanded. Price is now ₹1,894.4, up 45.79% from the 52-week low but -2.98% from its all-time high. Technicals are bullish: trades above 20-day, 50-day, and 200-day SMAs (₹1,834.99, ₹1,761.62, ₹1,667.91 respectively). RSI at 61.3 is neutral, not yet overbought. Volume normal — no unusual selling.
Institutional flows tell a mixed story. FII ownership trimmed 0.42 percentage points QoQ (from 24.87% to 24.45%), suggesting selective profit-taking post-result. DII ownership rose 0.71pp (from 19.91% to 20.62%), indicating domestic accumulation. Promoter stake stable at 49.22%. Combination suggests FIIs locking in gains after the run, while DIIs willing to hold or add on dips.
Valuation context: stock has recovered strongly from 52-week low and is nearing all-time highs. A -2.98% cushion from ATH means market has already priced most of bullish Q1 story. The +6.96% day-5 pop suggests momentum intact, but lack of incremental upside to ATH implies street is not betting on sustained margin expansion or higher FY27 guidance. Consistent with management's cautious tone — beat this quarter, hedge the full year.
What to watch next
1 · Q2 FY27 disbursement reporting (Oct 2026)
Accounting change normalizes. Watch reported disbursement growth revert from 22% to ~20% like-for-like. If analysts miss this normalization, it could trigger a false negative surprise.
2 · Monsoon outcome clarity (Aug-Sep 2026)
Final tally on 92% vs 96% normal forecast. If rains recover and MSME collateral holds, bear case weakens. If monsoons fail, expect elevated delinquency in LAP/SBPL and potential management downgrade to credit cost guidance.
3 · RBI rate hike trajectory (Sept-Dec 2026)
Every 25 bps above 25-50 bps assumption will pressure NIM and cost of funds. Monitor MCLR movements and management's FY27 cost of funds guidance. A 75+ bps hike would invalidate 'neutral cost of funds for FY27' message.
4 · Gold loan AUM traction and asset quality (Q2-Q3 FY27)
Can business hit ₹3-4 Cr AUM by mid-year? What is actual repayment rate and delinquency on this new product (currently 90% new customers)? Slowdown or asset quality deterioration would be red flag on management execution.
5 · CSEL ROA trajectory (Q2-Q3 FY27)
Can ROA climb above 3.5% by year-end (currently 3.3%)? Requires NCL below 4% and margin expansion. If CSEL remains a drag (sub-3.5% ROA), group's return profile becomes less attractive.
6 · CCD to equity conversion (Oct 2026)
₹430 Cr compulsorily convertible debentures convert to equity. Strengthens CAR, reduces debt burden. Watch for any disclosure on conversion terms and impact on equity base and ROE.
The honest read
Cholamandalam delivered a strong Q1: beat ROA guidance (3.7% vs 3.5%), hit AUM targets (23%), and achieved full-year credit cost milestones early (1.5%). Operational execution is solid; the company is gaining market share across vehicle finance, MSME, and emerging products like gold loans.
But exceptional PAT growth (45.6% vs revenue 21.9%) is driven by one-quarter cost and NIM tailwinds, not top-line business momentum. Seasonal Q1 asset quality, benign cost of funds (pre-rate-hike), and operating leverage created the outsized profit beat. Management explicitly signalled these tailwinds won't persist — the call was cautious, hedged, and refused to raise FY27 guidance despite the beat.
This is a steady execution story, not a step-change. Stock's day-5 pop (+6.96%) seems reasonable but not excessive given forward hedging. At -2.98% from all-time high and +46% from 52-week low, valuation has reset to reflect beat. Momentum intact (bullish technicals, DII accumulation), but FII trimming suggests early profit-taking.
For holders: risk is macro (monsoons, rate hikes, geopolitical). For new buyers: wait for Q2 clarity on monsoon outcomes and disbursement accounting normalization. The single number to track from here is organic credit cost pressure — if Stage 3 NPAs spike post-monsoon, management will likely need to raise guidance on credit loss provisions, invalidating the '1.5% for FY27' signal. Until monsoon outcome is known (Aug-Sep 2026), the bull case is on pause.
Beat guidance, but macro clouds gathering
The verdict, the claims that held up, the sharpest analyst exchanges, and the risks — the earnings call, decoded from the transcript.
Hold
confidence 7/10
Grade B
Beat ROA guidance (3.7% vs 3.5%), hit AUM at upper end (23%). Achieved credit cost target early (1.5%). Transparent on disbursement accounting change and seasonal challenges. Did not over-commit to FY27.
Optimistic
next 1–2 quarters
Optimistic
multi-year
Strong Q1 execution (beat ROA at 3.7%, hit AUM at 23%), but hedged forward outlook. Management cautious on macro (monsoons, geopolitical, rate hikes), avoiding bold FY27 targets. Growth trajectory likely sustainable; margin expansion contingent on benign macro and no rate surprises.
₹8856.3 Cr
Revenue · +21.9% YoY₹1656.2 Cr
Reported PAT · +45.6% YoYExpanding
Margins · vs guidance: CorroboratedDid the claims hold up?
Disbursements up 22% YoY to ₹29,612 Cr
OVERSTATEDRevenue up 21.9% YoY; management admitted like-for-like growth ~20% after accounting change
AUM expanded 23% YoY to ₹2,54,392 Cr
METRevenue up 21.9% YoY; AUM growth 23% at upper end of guidance is supported by strong top-line growth
ROA increased to 3.7% from 3.1% YoY
METPAT up 45.6% vs revenue 21.9%, with OPM 70% and NIM up 42 bps, supports exceptional ROA improvement
Credit costs declined by 24 bps to 1.5%, achieving FY27 target in Q1
METPAT outgrowth (45.6%) far exceeds revenue (21.9%), indicating strong cost control and asset quality
NIMs improved by 42 bps YoY, supported by lower funding costs
METCost of funds down, but NPM stable at 18.5%; NIM improvement consistent with reported OPM 70%
Earnings quality
What changed since the last call
Disbursement recognition to cheque clearance
NeutralReduces reported growth ~2% (22%→20% like-for-like), more conservative. No guidance change; impacts normalise next quarter.
Gold loan business accelerated
UpgradeOpened 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%).
CSEL recovery inflection
UpgradeNCL 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.
The Q&A
Analysts pressed hard on Stage 3 deterioration, credit cost sustainability, macro visibility. Management defended with seasonality data (6% delinquency, 94% current), held line on 1.5% credit cost achievement, acknowledged monsoon/geopolitical risks without conceding near-term weakness. Tone: defensive but honest, not evasive.
Macro impact & credit costs — Kunal Shah, Citi
AnsweredAchieved 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.
Slippage not improving as expected — Raghav Garg, Ambit
AnsweredQ4→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.
Cost of funds trajectory — Piran Engineer, CLSA
AnsweredOverall 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.
Disbursement accounting change detail — Zhixuan Gao, Schroders
AnsweredPronounced in LAP/HL due to registration lag. Like-for-like HL/LAP ~20%. AUM growth metric better (unaffected by timing). Normalises next quarter onwards.
Guidance headroom & margin expansion — Viral Shah, IIFL
Partial23% 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.
Asset quality vs peer comparison — Abhijit, Motilal
AnsweredSeasonality 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.
ROA trajectory by year-end — Renish, ICICI
Dodged3.5% 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.
Upcycle detection — Sanket, DAM Capital
PartialPattern correct historically, but different scenario with El Niño, war, tariffs. Can predict 1-2 quarters; longer-term uncertain. Will continue current momentum.
Gold loan cross-sell potential — Piran, CLSA
Answered90% 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.
Guidance
Disbursements 22-23% growth for FY27
High22% 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.
NIM hold at 8.2% or improve
MediumCost 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.
Risks the call surfaced
Asset quality deterioration
MediumStage 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.
Macro headwinds
MediumWeak 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).
Disbursement timing impact
LowMove 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.
New product execution risk
LowGold 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%).
Management
Score 7/10. Detailed on operations, transparent on disbursement accounting. Spent time defending seasonal asset quality patterns. Cautious on macro without conceding weakness. Evasive on specific FY27 ROA targets beyond '3.5% minimum'. Beat ROA (3.7% vs 3.5%), hit AUM at upper end (23%), achieved credit costs early (1.5%). Vehicle Finance above guidance (21% vs 18%). Solid delivery; hedging forward outlook.
1 · Q2 FY27
Disbursement accounting normalises; growth trajectory clears
2 · Aug 2026
Monsoon season ends; weak rains (92%) confirmed or recovered
3 · Oct 2026
₹430 Cr CCD to equity conversion; capital base strengthens
Growth trajectory likely sustainable; margin expansion contingent on benign macro and no rate surprises.
AUM Growth & NIM Trajectory in Focus Ahead of Q1 FY27 Print
Cholamandalam Investment heads into Q1 FY27 results riding 20–23% expected AUM growth guidance and ~8% NIM target for the year. Street consensus sits 5–9% above the current mark; watch for evidence the disbursement run-rate and asset quality hold amid recent capital moves.
The Setup: AUM Growth & Capital Strength in Focus
Cholamandalam Investment enters Q1 FY27 results (July 28) on a strong full-year growth footing: management has guided 20–23% AUM growth for FY27 with net interest margin (NIM) anchored around 8%. The July 8 conversion of ₹20,000 Cr in Compulsorily Convertible Debentures (CCDs) into 13.54 lakh equity shares—and ongoing NCD issuances of ₹2,100 Cr—underscore an aggressive capital-raising posture heading into the print. What Street will scrutinize: whether Q1 disbursements hold the pace, asset quality remains benign, and management reiterates the full-year NIM and AUM trajectory despite recent capital dilution.
~₹10.5–11.7 Cr
Q4 FY26 baseline ₹10.5 Cr; seasonally Q1 can run flat to slightly lower
~₹1.3–1.7 Cr
Q4 FY26 was ₹1,626 Cr; Q1 typically lighter post-quarter close; analyst consensus ₹1,500 Cr mid-range
~8.0%
FY27 target; watch for any guidance cut or confidence shift given capital raises
20–23% (FY27)
Street tracking full-year guidance; Q1 disbursement run-rate and pipeline will be key indicator
A strong quarter would show: revenue and PAT at or above consensus (₹11.5 Cr+ revenue, PAT ₹1,550 Cr+), evidence of healthy disbursements, Q1 AUM growth tracking toward full-year 20–23% guide, NIM hold or slight expansion, and stable/low stressed assets. A weak print would flag: revenue or profit materially below consensus, management cutting AUM or NIM guidance, asset quality deterioration signals, or margin compression from competitive pressures. Watch too for commentary on capital adequacy post-conversion and the impact on ROA/ROE.
On Track? Trajectory & Momentum
Cholamandalam's Q4 FY26 saw revenue of ₹10,520 Cr (roughly in line with run-rate) and PAT of ₹1,626 Cr, with management then providing FY27 NIM guidance at ~8% and AUM growth 20–23%. The recent CCD conversion and debt raise signal confidence in both the growth opportunity and capital headroom. Market has responded with analyst consensus lifting to ₹1,800–₹1,887 (27–34 analysts covering), but FII has modestly exited (-1.68pp QoQ), while DII has accumulated (+2.36pp). The stock trades at ₹1,721.5—5–9% below consensus—leaving room for positive surprise if Q1 confirms management's full-year trajectory.
Street View: Consensus & Coverage
Since Last Quarter: Corporate Actions & Filings
Jun 25, 2026
₹2,000 Cr NCDs allotted (unsecured, subordinated redeemable)
NCD Allotment
Jun 18, 2026
₹100 Cr secured NCDs allotted (8.08% coupon, 3-year)
NCD Allotment
Jul 6, 2026
Window closed Jul 1–30 for designated persons (result window)
Trading Window Closure
Jul 8, 2026
₹20,000 Cr CCDs converted to 13.54 lakh equity shares (₹1,476 per share)
CCD Conversion
Jul 6, 2026
48th AGM scheduled Jul 28, 2026, 3:30 PM IST (same day as board result meeting)
AGM Notice
The capital-raising spree—₹2,100 Cr in NCDs + ₹20,000 Cr CCD-to-equity conversion—signals both confidence in growth and preparation for higher lending volumes. No material operational setbacks or insider pledges flagged. Routine disclosure and AGM governance.
What to Watch on Result Day
1 · Disbursement momentum & AUM growth
Q1 disbursement level and AUM growth trajectory vs. FY27 guidance (20–23%). A slowdown here signals demand or competitive headwinds.
2 · Net interest margin (NIM) sustainability
Verify whether NIM holds at or near 8% guidance. Compression would suggest yield pressure or higher funding costs offset by the debt raise.
3 · Asset quality & stressed assets
Watch for any deterioration in stage-2 or stage-3 loans, or uptick in restructuring requests. Benign Q4 asset quality may not persist if credit cycles tighten.
4 · ROA/ROE post-dilution
Post-CCD conversion, share count has increased ~0.16%. Management commentary on return trajectory and accretion timeline will matter to earnings momentum.
5 · Management outlook & guidance reiteration
Reiteration of FY27 AUM growth (20–23%) and NIM (~8%) targets. Any cut or hedging language could spook the Street given recent capital moves.
Cholamandalam Investment reports Q1 FY27 results on July 28 with Street consensus target of ₹1,800–₹1,887 and solid analyst coverage backing a 20–23% AUM growth trajectory. The recent CCD-to-equity conversion and ₹2,100 Cr NCD raises signal management confidence but also introduce dilution to watch. The print will turn on three pillars: evidence that Q1 disbursements hold pace toward full-year AUM guidance, confirmation that NIM remains anchored near 8% despite capital raises, and no material asset-quality deterioration. For a stock trading 5–9% below consensus, a beat on disbursements or strong forward guidance could unlock upside; a stumble on AUM growth or a guidance cut would reverse the recent momentum. This is fundamentally a growth-and-efficiency story: watch whether management can sustain both amid the capital dilution.
Chola Q1: consolidated PAT jumps 46% YoY to ₹1,656 Cr as credit costs stay benign
PAT +45.56% YoY · revenue +21.87% · margins expanding · beat vs street
₹8,856.29 Cr
+21.87% YoY
₹1,656.22 Cr
+45.56% YoY
18.49%
+3pp YoY
₹19.33
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.
Q1 FY-2027 vs prior quarters
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.
What the summary numbers don't show
Vehicle Finance AUM +19% YoY, LAP +23%, Home Loans +22%, SME +39% — broad-based across segments
Management guides for consolidated AUM growth of 20% to 23% in FY27, driven by strong performance across all business segments, including ~18% growth in Vehicle Finance and 25-30% in mortgage businesses. They anticipate an improvement in profitability, targeting a pre-tax ROA of around 3.5%, supported by a reduction in
— This quarter: beat
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%.
W1
Credit-cost/asset-quality trajectory: GNPA rose to 4.50% and Stage-3 coverage fell to 45.7% — watch whether the sequential slippage extends into Q2
W2
AUM growth holding at the 23% top-end vs the 20–23% FY27 guide, and PBT-ROA sustaining the 3.7% (target ~3.5%) level
W3
Execution of the ₹55,000 Cr NCD programme and the residual ₹430 Cr CCD conversion due October 2026
Clean digital filing. Consolidated PBT includes ₹1.49 Cr share of associate/JV profit; no non-controlling interest; no exceptional items. Standalone revenue-from-ops line was OCR-garbled but reconciles (8,932.95 total income − 99.57 other income = 8,833.38).