Cholamandalam Investment and Finance Q2 Net Profit Rises 41%, Board Approves ₹5,000 Crore QIP

CHENNAI — Cholamandalam Investment and Finance Company Ltd (CIFCL), a non-banking financial company owned by the Murugappa Group, has announced its financial results for the quarter ended September 2026 (Q2 FY27), alongside plans to raise capital.

The company's board of directors approved fundraising via a Qualified Institutional Placement (QIP) for an amount not exceeding ₹5,000 crore, to be raised in one or more tranches.

The fundraise plans follow a period of strong financial performance for the NBFC. CIFCL reported a 41 percent jump in net profit, reaching ₹1,630 crore for Q2 FY27. This growth in profitability was supported by a 47 percent increase in disbursements during the quarter, which totaled ₹35,872 crore.

For the half-year ended September 2026 (H1 FY27), the company recorded a net profit of ₹3,284 crore, representing a 43 percent year-on-year increase.

Total assets under management (AUM) for the NBFC grew 25 percent year-on-year to reach ₹2,68,009 crore.

Segment-wise, vehicle finance remained the largest sector, registering a 21 percent year-on-year growth with an AUM of ₹1,29,787 crore as of September 30. Loans against property grew by 24 percent year-on-year to ₹57,447 crore. Meanwhile, the small and medium enterprises (SME) loan business recorded a 45 percent year-on-year growth in AUM.

The company's newer gold loan business disbursed ₹1,960 crore in Q2 FY27 and ₹2,714 crore in H1 FY27. The gold loan AUM stood at ₹3,446 crore as of September 30, with operations running across 308 dedicated branches.

CIFCL also reported improvements in asset quality on a sequential basis. According to RBI norms, the Gross Non-Performing Assets (GNPA) percentage stood at 4.44 percent as of September 2026, compared to 4.50 percent in June 2026. The Net Non-Performing Assets (NNPA) percentage was recorded at 2.92 percent, down from 2.95 percent in the previous quarter.

Following the announcement, shares of CIFCL were trading at ₹1,553.85, up 5.2 percent.

"Cholamandalam Investment and Finance Company's decision to raise up to ₹5,000 crore via QIP comes from a position of financial strength, backed by a 41 percent jump in quarterly net profit and broad-based AUM growth across vehicle finance, SME loans, and property loans. Maintaining stable asset quality while scaling disbursements indicates disciplined credit management. For established financial institutions, proactive capital raising ensures they are well-positioned to sustain lending momentum and capture expanding opportunities in the market." — Dr. Shishir Gupta, Founder & CEO, StartupLanes