Cholamandalam Investment Q2 Results, October 28, 2026: Profit Up 41%, Board Clears ₹5,000 Crore QIP

Cholamandalam Investment Q2 results came out on Wednesday, October 28, 2026, and the Murugappa Group NBFC gave the market two things to chew on at once. Standalone net profit rose 41% to ₹1,630 crore for the July-September quarter, from ₹1,155 crore a year ago, as reported by CNBC-TV18. And the board cleared a plan to raise up to ₹5,000 crore through a qualified institutional placement.

Investors seemed to like the growth more than they worried about dilution. The stock was trading at ₹1,522.25 on the BSE at 1:42 pm, up 3.10%, per CNBC-TV18, and BusinessLine later had it at ₹1,553.85, up 5.2%.

Cholamandalam Investment Q2 results in numbers

• Net profit: ₹1,630 crore, up 41% year on year from ₹1,155 crore.
• Net interest income: ₹4,174 crore, up 23.5% from ₹3,379 crore (CNBC-TV18).
• Net income: ₹5,037 crore, up 24% from ₹4,075 crore, according to The Economic Times.
• Total income: ₹9,367 crore against ₹7,590 crore a year earlier, a rise of about 23%. Finance costs grew at roughly the same pace to ₹4,329 crore.
• Profit before tax: ₹2,187 crore, up 40% from ₹1,565 crore.
• Loan losses: ₹874 crore, down 3% from a year ago.
• First half (April-September): net profit of ₹3,284 crore, up 43% (BusinessLine).

The profit story is simple enough. Income grew in the mid-20s, credit costs actually fell a little, and that combination pushed profit growth well past loan growth. Net interest margin held flat at 7.9%, ET reported.

Where the growth came from

Assets under management (AUM) rose 25% to ₹2,68,009 crore by September 30, up from ₹2.15 lakh crore a year earlier. Disbursements for the quarter jumped 47% to ₹35,872 crore, and came to ₹65,484 crore for the half year.

Vehicle finance is still the backbone, with AUM of ₹1,29,787 crore, up 21%. Loan against property grew 24% to ₹57,447 crore, and home loans also grew 24%, to ₹25,240 crore. The faster-growing pieces are smaller: the SME loan book rose 45% to ₹10,943 crore, consumer and small enterprise loans grew 23% to ₹17,216 crore, and secured business and personal loans grew 35% to ₹3,966 crore.

Then there’s gold loans, a fairly new business for Chola. It disbursed ₹1,960 crore in the quarter, had AUM of ₹3,446 crore at the end of September, and runs through 308 dedicated branches. ET said gold loans made up 5% of total disbursements this quarter. Small today, but it’s clearly being built out quickly.

Asset quality and the capital raise

Asset quality improved a touch from the June quarter. Stage 3 assets slipped to 3.25% from 3.29%, gross NPAs under RBI norms eased to 4.44% from 4.50%, and net NPAs came down to 2.92% from 2.95%, per CNBC-TV18 and BusinessLine. Capital adequacy stood at 20.62% against the 15% regulatory requirement.

Now, why raise ₹5,000 crore with a capital ratio above 20%? The answer is the pace of growth. A lender adding 25% to its book every year eats capital fast, and the QIP of equity shares or convertible securities, which can happen in one or more tranches, gives Chola headroom before it needs it. Management told analysts the money would be raised over the next six to nine months, ET reported. If you want a refresher on how these deals work, our explainer on qualified institutional placements covers the basics.

One thing to watch: management expects its cost of funds to rise by 10-15 basis points year on year in the coming quarter, according to ET. About half of its borrowings are at floating rates, and total borrowings stood at ₹2.31 lakh crore at the end of September. So margins could come under a little pressure even if growth holds up.

What it means for investors

We’d read this as a strong growth quarter with steady credit, plus a fundraise that will dilute existing shareholders somewhat when it happens. The real test over the next few quarters is whether Chola keeps credit costs in check while it pushes newer books like SME and gold loans this hard. For context on how other lenders did this season, see our coverage of Five Star Business Finance’s Q2 and Aavas Financiers’ Q2.

Sources: CNBC-TV18, BusinessLine, The Economic Times and The Economic Times (results report), all dated October 28, 2026.

Disclaimer: This article is for information and education only and is not investment advice. Please do your own research or consult a SEBI-registered adviser before making any investment decision.