Cholamandalam Investment Q4 FY25 PAT up 18% on strong AUM

Key takeaways from the latest disclosures

Cholamandalam Investment and Finance Company Ltd (CIFCL), the financial services arm of the Murugappa Group, reported higher consolidated profit and income for the January to March 2025 quarter and for the full year ended March 31, 2025. The company also highlighted a strong capital position and announced dividends for shareholders. Separately, an update for the April to June 2025 quarter showed profit growth alongside flat disbursements.

Alongside the reported numbers, the notes shared in the provided text flagged steady operating expenses year-on-year (YoY) despite the impact of new labour codes, and a marginal improvement in credit costs. Vehicle finance credit costs were stated to have stabilised at 2%.

Q4 FY25 profit rises, income jumps

For Q4 FY25 (January to March 2025), CIFCL reported consolidated profit after tax (PAT) of Rs 1,259.54 crore. This was up from Rs 1,065.23 crore in the corresponding quarter of the previous year. Consolidated total income for the quarter rose to Rs 7,136.91 crore, compared with Rs 5,499.16 crore in the year-ago quarter.

The update also included a revenue figure of Rs 7,137.34 crore for the same quarter, alongside the PAT figure of Rs 1,259.54 crore and net profit margin of 17.65%. The text attributed the quarter’s improvement to stronger core operations in earlier reporting.

FY25 performance: PAT above Rs 4,262 crore

For the full year ended March 31, 2025, consolidated PAT increased to Rs 4,262.70 crore from Rs 3,420.06 crore in the previous year. Consolidated total income for FY25 rose to Rs 26,152.76 crore from Rs 19,419.87 crore.

The provided material also mentioned profit before tax (PBT) of Rs 5,737 crore for FY 2024-25 versus Rs 4,582 crore for FY 2023-24. In addition, another segment note referenced profit after tax of Rs 4,259 crore (previous year: Rs 3,423 crore) and underwriting loss being held stable, alongside a profit before tax of Rs 650 crore in that context. These figures were presented as part of broader commentary included in the source text.

Disbursements: quarterly growth, yearly milestone

Disbursements in Q4 FY25 grew 7% to Rs 26,417 crore, up from Rs 24,784 crore a year ago. For the full year, annual disbursements crossed Rs 1 lakh crore, reaching Rs 1,00,869 crore, reflecting 14% YoY growth.

A separate quarterly data point in the supplied text for April to June 2025 said aggregate disbursements were flat at Rs 24,325 crore, compared with Rs 24,332 crore in the corresponding quarter of the previous year.

AUM growth and capital position

CIFCL’s assets under management (AUM) as of March 31, 2025 stood at Rs 1,99,876 crore, up 30% from Rs 1,53,718 crore a year earlier. A separate line in the text stated “business AUM” stood at Rs 1,84,746 crore, reflecting 27% YoY growth.

On capital, the company reported a Capital Adequacy Ratio (CAR) of 19.75% as of March 31, 2025, above the regulatory minimum of 15%. Tier-I capital was 14.41% and Tier-II was 5.34%. The Common Equity Tier-I (CET-I) ratio was 13.68%, above the 9% regulatory requirement.

Dividend recommendations for FY25

The board, at its meeting on April 25, recommended a final dividend of Rs 0.70 per share (35%). This was in addition to an interim dividend of Rs 1.30 per share (65%) declared on January 31, 2025.

Expense and asset quality commentary

The notes in the provided material said operating expenses remained steady YoY, despite the impact of a new labour code. Credit costs were said to have improved marginally, with vehicle finance credit costs stabilised at 2%.

These items matter for investors tracking profitability durability, because expense growth and credit costs can materially influence earnings even when loan growth remains healthy.

FY26 guidance and segment outlook

In the “Outlook and guidance” portion provided, the company maintained AUM growth guidance of 20%-22% for FY26. Net interest margins (NIMs) were expected to hold at current levels, “barring macro shocks.”

The same guidance note pointed to positive momentum expected in heavy commercial vehicles (HCV), light commercial vehicles (LCV), and passenger vehicle segments. It also flagged a strong outlook for construction equipment and tractors. For LAP and home loans, the text said these businesses could benefit from retail credit demand and government housing initiatives.

It also stated that further CCD conversions were expected to improve Tier I capital in March 2026.

Macro and market context referenced in the text

The supplied material included macro context, including an IMF projection that global GDP could drop to 2.8% in 2025 and 3% in 2026 following tariff measures announced by the United States. It also noted “higher-than-expected trade deficit in February 2026” as a factor that could keep the current account in deficit mode in Q4 FY2026 versus a surplus in Q4 FY2025.

While these are broader indicators rather than company-specific drivers, they frame the “macro shocks” caveat referenced in the guidance.

Snapshot table: key reported numbers

Conclusion

CIFCL closed FY25 with higher profits, higher income, and a sharp rise in AUM, while keeping capital ratios above regulatory thresholds. The FY26 guidance in the provided text points to 20%-22% AUM growth with NIMs expected to stay around current levels, with the next key watchpoint being the March 2026 CCD conversions referenced as supportive for Tier I capital.