Cholamandalam Investment on track to achieve growth targets for assets under management in FY26, says CFO

D Arul Selvan, President and CFO of Cholamandalam Investment and Finance Company Limited (CIFCL)

“Payouts have been growing in recent quarters across all categories, and this quarter total payouts grew by approximately 16 percent,” he said. business line in an interaction on Monday.

We had targeted 20 to 22 percent growth in assets under management (AUM) for FY26 and we are well on track with this growth, he said. He noted that the credit environment had partly improved, but it remains a cautionary tale, especially on the unsecured side.

CIFCL reported a net profit of ₹1,288 crore in the quarter ended December 2025 (Q3FY26), up 19 per cent from ₹1,087 crore in the same quarter last year.

Profitability was aided by growth in disbursements across categories such as auto financing, real estate loans and home loans.

The gold loan sector, which the NBFC recently entered, continues to grow with disbursements of ₹772 crore in Q3 2026 to 118 dedicated branches.

The NBFC expects credit costs to moderate in the fourth quarter as it sees growth in auto finance and home loans and a reduction in its Consumer & Small Enterprise Loans (CSEL) portfolio. Credit costs remained high at 1.8 percent in the third quarter.

Selvan says asset quality is more or less at the same level as the previous quarter and is not a concern for the lender. “Our focus has been on reducing what we call the phase 2 assets. Because in that phase itself, if you downsize, the forward flow would be smaller,” he said.

However, asset quality deteriorated slightly on a quarterly basis. Gross NPA as per RBI norms stood at 4.63 per cent in December 2025, up from 4.57 per cent in September 2025. NNPA stood at 3.13 per cent in December 2025, up from 3.07 per cent in the previous quarter.

At a time when other NBFCs like Shriram Finance have raised large growth investments from foreign investors, CIFCL says it currently has no plans to raise equity and is well supported in terms of capital.

Published on February 3, 2026