Cholamandalam Investment and Finance Company Q2FY26 Concall Decoded – Growth Stays Turbocharged, But CSEL Brakes Squeal
1. Opening Hook
After a quarter where GST cuts, repo rate tweaks, and monsoons all decided to show up to the same party, Chola’s management somehow still managed to sound optimistic. Loan disbursements flirted with ₹24,442 crore, AUM hit ₹2.15 lakh crore, and everyone on Dalal Street smiled—until someone mentioned “CSEL.”
Yes, the consumer and small enterprise loan book threw another tantrum, but Vellayan’s optimism could power a solar plant. Read on—because this quarter’s mix of margin magic, monsoon melodrama, and Fintech heartbreak is peak Chola entertainment.
2. At a Glance
AUM up 21% – Growth on steroids; even RBI must be blushing.
LAP AUM +33% – Real estate might be asleep, but Chola’s lending is wide awake.
NIM at 7.9% (↑40 bps) – Interest spreads stretching better than yoga instructors.
PBT ₹1,561 crore (↑20%) – Profit party alive and revving.
ROE 18.1% – CFO swears it’s sustainable, not Excel acrobatics.
CSEL portfolio stress – The bad kid in class, but “has peaked,” claims management. 😏
3. Management’s Key Commentary
Vellayan Subbiah: “Repo cuts and GST rationalization will help credit offtake in the medium term.” (Translation: Government did half the heavy lifting, we’ll take full credit.)
Ravindra Kundu: “Vehicle utilization has improved 30-40 days post-festive season.” (Translation: Trucks are finally back to work after binge-watching rain.)
Arul Selvan: “NIM improved to 7.9%, expect another 10-15 bps in H2.” (Translation: Our treasury team deserves a bonus—and maybe a temple visit.*)
Vellayan Subbiah: “Credit losses in CSEL have peaked.” (Translation: The bleeding has slowed; we just need a new bandage supplier.*)
Ravindra Kundu: “Unsecured business loans stress is due to overleveraged customers and aggressive DSAs.” (Translation: When fintech meets FOMO, defaults follow.*)
Balraj Menon: “Tamil Nadu and Karnataka books are improving despite rains.” (Translation: Even Cyclone Michong couldn’t dampen our collections mojo.*)
Vellayan Subbiah: “Gold loan disbursements hit ₹500 crore; more to come.” (Translation: If trucks fail, gold never does—classic Chola hedging.*)
