Cholamandalam Investment: Vehicle Finance to Boost Q4 Disbursements, AUM Growth Gradual

• Cholamandalam Investment and Finance expects vehicle finance disbursements to improve in Q4 FY26, driven by demand trends.
• Arul Selvan D, President and CFO, stated that while Q4 disbursements will grow better, the impact on Assets Under Management (AUM) will be gradual due to the large loan book size.
• The company reported an 18.5% increase in Profit After Tax (PAT) to ₹1,287.66 crore for Q3 FY26.
• Net Interest Margins (NIMs) are expected to see a 5-10 basis points improvement in Q4, with cost of borrowing potentially improving further.
• Credit costs are projected to decline in Q4, with the full-year credit cost expected to be around 1.6%, benefiting from a reduction in the unsecured book and strong Q4 vehicle finance performance.

Why It Matters: Cholamandalam Investment anticipates stronger Q4 vehicle finance disbursements, with AUM growth and NIMs improving gradually.