Cholaman.Inv.&Fn Q2 FY27 Results (NSE: CHOLAFIN)
Signal: Earnings grew
The read
Q2FY27 sustains the NBFC growth engine: consolidated total income rose 23.4% YoY and NII 23.5%, while impairment fell 2.6% and PAT rose 40.6%; the key forward issue is whether loan growth accelerates from the ₹2,40,356.93 crore asset base without further employee-cost pressure, alongside potential QIP dilution.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹9,394.51 Cr | +23.4% | +4.9% |
| Net profit | ₹1,630.34 Cr | +40.6% | |
| EPS | ₹19.09 | +38.5% | |
| EBIT margin | 0% |
P&L walk
Consolidated total income rose 23.4% YoY to ₹9,394.51 crore and NII rose 23.5% to ₹4,178.75 crore; lower impairment costs supported 40.6% PAT growth to ₹1,630.34 crore despite finance costs rising 23.2%.
Key positives
- Consolidated NII rose 23.5% YoY to ₹4,178.75 crore, broadly matching 23.4% total-income growth of ₹9,394.51 crore.
- Impairment declined 2.6% YoY to ₹874.21 crore and 5.2% QoQ, supporting PAT growth of 40.6% to ₹1,630.34 crore.
- Consolidated loans increased to ₹2,40,356.93 crore from ₹2,17,743.72 crore at 31 March 2026, while depreciation rose 17.1% alongside higher fixed assets and CWIP.
- Consolidated and standalone PAT were nearly identical at ₹1,630.34 crore and ₹1,630.07 crore, indicating limited earnings dependence on subsidiaries or associates.
Key concerns
- Employee benefits expense rose 33.4% YoY to ₹1,431.67 crore, faster than total-income growth of 23.4%, creating operating-cost pressure.
- Operating cash flow was negative at ₹11,330.49 crore for the half-year versus negative ₹2,871.41 crore in the year-ago period as loan assets expanded.
- The proposed QIP of up to ₹5,000 crore could increase the equity base and dilute future EPS if issued at a discount to prevailing valuation.
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