Markets India
Cholamandalam Investment and Finance Company reported a 41% jump in net profit to Rs 1,630 crore for Q2 ended September 30, 2026, driven by higher interest income. The company also approved a Rs 5,000 crore QIP to bolster capital, signaling confidence in its financial health.
The results reflect a sharp rise in net profit to Rs 1,630 crore, up from Rs 1,155 crore in the same period the prior year. Total income climbed to Rs 9,367 crore from Rs 7,590 crore, with gross non-performing assets (NPAs) declining to 3.29% of gross advances, down from 4.44% a year earlier. Net NPAs fell to 2.92% in Q2 2026 from 2.95% in Q2 2025. The board approved a qualified institutional placement (QIP) to raise up to Rs 5,000 crore via equity shares or convertible securities, aiming to strengthen liquidity and fund expansion. The company’s capital adequacy ratio (CAR) stood at 20.62%, exceeding the regulatory requirement of 15%, with Tier-I Capital at 16.02% and Tier-II Capital at 4.60%.
The company will proceed with the QIP issuance, subject to regulatory approvals and market conditions. Further updates on NPA trends and capital adequacy will be reported in subsequent quarters.
Cholamandalam Investment’s Q2 results highlight robust profitability and improved asset quality, but the success of its Rs 5,000 crore QIP remains uncertain, pending market dynamics and regulatory clearances.
Topics: Financial Results, Capital Raise, Asset Quality, Non-Performing Assets, Banking Sector, India Markets
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Source: ET Markets
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