Cholamandalam Investment AUM rises 21% to ₹214,906 crore

Disbursements and AUM update: why it matters

Cholamandalam Investment and Finance Company Ltd (Chola) reported aggregate disbursements of ₹24,442 crore in Q2FY26 and ₹48,646 crore in H1FY26. Assets under management (AUM) stood at ₹214,906 crore as of 30 September 2025, up from ₹177,426 crore a year earlier, translating into 21% year-on-year growth. The numbers offer a clean read-through on credit demand, product mix, and how different lending lines are scaling. They also help investors compare the company’s recent trajectory with its FY24 and Q4FY25 performance disclosures.

Q2FY26 and H1FY26: the headline numbers

For Q2FY26, Chola’s disbursement engine was led by Vehicle Finance, which accounted for more than half the quarterly disbursements. Mortgage-linked products, especially Loan Against Property (LAP), contributed meaningful scale and stronger AUM growth rates than the base vehicle franchise. The company’s AUM expansion from ₹177,426 crore to ₹214,906 crore over 12 months indicates continued book build-up across secured retail and small business lending lines.

Segment-wise disbursements: what drove Q2FY26

Vehicle Finance (VF) disbursed ₹13,539 crore in Q2FY26 and ₹27,186 crore in H1FY26. LAP disbursements were ₹4,630 crore in Q2FY26 and ₹9,336 crore in H1FY26. Home loans contributed ₹1,697 crore in Q2FY26 and ₹3,461 crore in H1FY26. SME loans disbursed ₹1,581 crore in Q2FY26 and ₹3,286 crore in H1FY26.

Consumer and Small Enterprise Loans (CSEL) reported ₹2,142 crore of disbursements in Q2FY26 and ₹4,188 crore in H1FY26. Secured Business and Personal Loan (SBPL) disbursed ₹385 crore in Q2FY26 and ₹744 crore in H1FY26. Taken together, the split shows a mix of scale businesses (VF and LAP) and smaller but faster-growing lines (SBPL), alongside CSEL which is meaningful in disbursements but did not grow AUM year-on-year.

AUM by business line: growth pockets and laggards

As of 30 September 2025, VF AUM stood at ₹107,568 crore versus ₹92,012 crore in the prior year, up 17% YoY. LAP AUM was ₹46,302 crore versus ₹34,824 crore, up 33% YoY. Home loan AUM rose to ₹20,405 crore from ₹15,892 crore, up 28% YoY. SME AUM increased to ₹7,544 crore from ₹5,877 crore, up 28% YoY.

CSEL AUM was ₹13,952 crore as of 30 September 2025 compared with ₹14,175 crore a year ago, indicating a decline. SBPL AUM rose to ₹2,932 crore from ₹1,863 crore, up 57% YoY. The dispersion in AUM growth rates highlights where incremental portfolio build-up is concentrated, with LAP and SBPL showing the sharpest YoY expansion off different base sizes.

Snapshot table: Q2FY26 and H1FY26 operating metrics

Linking the latest numbers to FY24 audited performance

Chola’s FY24 audited disclosures provide a useful base for comparison on scale and momentum. For Q4 FY24, disbursements were ₹24,784 crore, up 18% YoY, and FY24 disbursements were ₹88,725 crore, up 33% YoY. AUM as of 31 March 2024 stood at ₹153,718 crore, up 36% YoY. In the same audited release, Q4 FY24 net income was ₹2,913 crore (up 41% YoY) and FY24 net income was ₹9,986 crore (up 38% YoY). PAT was ₹1,058 crore for Q4 FY24 (up 24% YoY) and ₹3,423 crore for FY24 (up 28% YoY).

The FY24 breakdown also showed segment growth in disbursements: VF disbursements for FY24 were ₹48,348 crore (up 22% YoY), LAP disbursements ₹13,554 crore (up 46% YoY), home loans ₹6,362 crore (up 66% YoY), SME loans ₹8,106 crore (up 27% YoY), CSEL ₹11,281 crore (up 64% YoY), and SBPL ₹1,074 crore (up 138% YoY). While periods differ, the data helps contextualise which product lines were already scaling fast and which are now showing AUM acceleration.

Q4FY25: profitability, revenue and AUM scale

For the quarter ended 31 March 2025 (Q4FY25), the company reported revenue from operations of ₹7,025 crore, up from ₹5,388 crore (about 30% YoY). Net income for the quarter was ₹3,758 crore, up 29% YoY, while PAT stood at ₹1,267 crore, up 20% YoY versus ₹1,058 crore in Q4FY24. Total AUM was reported at ₹199,876 crore, up 30% YoY. The same set of disclosures referenced ROE of 22.2% and gross NPA (GNPA) at 2.8%.

Another Q4FY25 update also reported a net profit of ₹1,058 crore versus ₹853 crore in the year-ago quarter, net interest income (NII) of ₹2,006.9 crore (up 30.8% YoY), and total disbursements of ₹26,417 crore for the quarter (up 7% YoY). It also stated that the firm forayed into the gold loan business.

Management commentary and the December 2024 quarter datapoints

In a management commentary for the quarter and year-to-date ended December 2024, disbursements were stated at ₹25,806 crore for the quarter (up 15%) and ₹74,452 crore year-to-date (up 16%). AUM was reported at ₹189,141 crore (up 34% YoY). Net income was ₹3,541 crore for the quarter (up 37%) and ₹9,812 crore year-to-date (up 39%). PAT was ₹1,087 crore for the quarter (up 24%) and ₹2,992 crore year-to-date (up 27%).

Market impact: what the numbers indicate, without extrapolation

The Q2FY26 mix shows VF as the largest engine by disbursements and AUM, while LAP is growing faster in AUM terms. Home loans and SME loans both posted 28% YoY AUM growth as of 30 September 2025, indicating steady expansion from a smaller base compared with VF. SBPL’s 57% YoY AUM growth points to rapid scaling, but from a relatively small AUM base of ₹2,932 crore. CSEL’s AUM decline to ₹13,952 crore from ₹14,175 crore stands out against the broader growth trend.

From an investor lens, the key factual takeaway is that total AUM expansion continues alongside steady disbursement volumes, while profitability metrics disclosed for Q4FY25 show PAT growth and a reported ROE of 22.2% with GNPA at 2.8%. The gold loan foray, as reported, adds a new secured product line to the mix, though the provided data does not quantify its contribution yet.

Conclusion

Chola’s latest operational disclosure shows Q2FY26 disbursements of ₹24,442 crore and AUM of ₹214,906 crore as of 30 September 2025, up 21% YoY. Segment data points to strong AUM growth in LAP, home loans, SME, and SBPL, while CSEL AUM declined year-on-year. Recent quarterly and audited disclosures around FY24 and Q4FY25 provide the profitability and scale context, including revenue from operations of ₹7,025 crore and PAT of ₹1,267 crore for Q4FY25. The next set of results and business updates should clarify how the newer initiatives, including gold loans, are tracking within the overall mix.