Cholamandalam Investment Q2 Results: Stock falls 5% after asset quality deteriorates

Shares of Cholamandalam Investment & Finance Company fell as much as 5% on Thursday, November 6, in response to its September quarter results.Cholamandalam’s asset quality deteriorated on a sequential basis with gross NPA at 4.57% from 4.29% in June, while Net NPA also deteriorated to 3.07% to 2.86% in the previous quarter. These figures are as per the RBI asset classification norms. Provision Coverage Ratio (PCR) for the quarter stood at 33.88% from 34.41% in June.

The company’s Gross Stage 3 assets stood at 3.35% from 3.16% in June, while Net Stage 3 assets stood at 1.93% from 1.8% in June, as per the Ind AS norms.

Among other parameters, Net Profit for the period increased by 20% from last year to ₹1,155 crore, which was in-line with the CNBC-TV18 poll projection of ₹1,170 crore.Net Interest Income, or core income earned by the company increased by 24.5% from last year to ₹3,378 crore, which is also in-line with the CNBC-TV18 poll of ₹3,359 crore.

Pre-Provisioning Operating Profit stood at ₹2,458 crore, which is also in-line with the CNBC-TV18 poll of ₹2,482 crore.

Shares of Cholamandalam Investment & Finance Company dropped 4.7% after the earnings announcement, currently trading at ₹1,665.5. The stock has risen 41% so far in 2025.