Cholamandalam Financial Holdings Ltd Reports Strong Quarterly Growth Amid Positive Financial Trend

Quarterly Financial Performance Surges to New Highs

In the December 2025 quarter, Cholamandalam Financial reported net sales of ₹9,948.79 crores, the highest in its recent history. This represents a significant uplift compared to previous quarters, underscoring the company’s ability to expand its revenue base amid a competitive NBFC landscape. The company’s Profit Before Depreciation, Interest and Taxes (PBDIT) also reached a peak of ₹5,461.74 crores, signalling improved operational efficiency and margin management.

Net profit after tax (PAT) stood at ₹625.73 crores, the highest quarterly figure recorded by the company, while earnings per share (EPS) rose to ₹33.32. These figures collectively highlight a strong earnings momentum that has been building over the past few quarters, supported by disciplined cost control and a favourable credit environment.

Positive Shift in Financial Trend and Market Sentiment

MarketsMOJO’s financial trend parameter for Cholamandalam Financial has upgraded from flat to positive, with the company’s score improving from 5 to 6 over the last three months. This upgrade reflects the company’s enhanced financial health and growing investor confidence. The Mojo Grade has been revised to a Strong Sell with a Mojo Score of 29.0 as of 7 January 2026, indicating that while the company is showing operational improvements, market valuation and risk factors remain a concern for investors.

Despite the strong quarterly results, the company’s market capitalisation grade remains low at 2, suggesting that it is still considered a mid-cap stock with room for growth but also volatility. The stock price closed at ₹1,720.00 on 10 February 2026, up 4.18% from the previous close of ₹1,651.05, reflecting positive investor reaction to the quarterly disclosures.

Cash Reserves and Liquidity Position Strengthen

Cholamandalam Financial’s half-yearly cash and cash equivalents reached ₹10,506.07 crores, the highest recorded level, providing the company with a strong liquidity buffer. This enhanced cash position is critical for an NBFC, enabling it to meet funding requirements, manage asset quality, and capitalise on growth opportunities without undue reliance on external borrowing.

The company’s ability to maintain a healthy cash reserve is a positive indicator of financial discipline and prudent risk management, especially in a sector where liquidity can be a key vulnerability during economic slowdowns or credit tightening phases.

Long-Term Returns Outperform Benchmark Indices

Over longer time horizons, Cholamandalam Financial has delivered impressive returns relative to the Sensex benchmark. The stock has generated a 10-year return of 322.81%, significantly outpacing the Sensex’s 249.97% gain over the same period. Similarly, three- and five-year returns stand at 177.20% and 216.64% respectively, compared to Sensex returns of 38.25% and 63.78%.

Even on a one-year basis, the stock has outperformed the benchmark with a 16.87% return versus Sensex’s 7.97%. However, shorter-term returns have been mixed, with a 1-month decline of 5.57% contrasting with a 1-week gain of 4.42%, reflecting some volatility in recent trading sessions.

Sector Context and Competitive Positioning

Operating within the NBFC sector, Cholamandalam Financial faces intense competition from both established players and emerging fintech lenders. The sector has been navigating regulatory changes, interest rate fluctuations, and evolving credit demand patterns. Against this backdrop, the company’s ability to post record quarterly sales and profits is a testament to its strong franchise and operational resilience.

While no key negative triggers were identified in the latest quarter, investors should remain mindful of sector-specific risks such as asset quality deterioration and funding cost pressures that could impact future performance.

Outlook and Investor Considerations

Cholamandalam Financial’s recent quarterly results and positive financial trend upgrade suggest a company on an upward trajectory, with improving profitability and strong cash reserves. However, the current Mojo Grade of Strong Sell indicates that valuation concerns and sector risks remain pertinent for investors.

Investors should weigh the company’s operational improvements against broader macroeconomic factors and NBFC sector dynamics. The stock’s historical outperformance relative to the Sensex provides confidence in its long-term growth potential, but short-term volatility and market sentiment could influence near-term price movements.

Given the company’s strong quarterly earnings and enhanced liquidity, it remains a key player to watch within the NBFC space, particularly for investors with a medium to long-term horizon seeking exposure to financial services growth in India.

Summary

Cholamandalam Financial Holdings Ltd has delivered its highest quarterly net sales, PBDIT, PAT, and EPS in the December 2025 quarter, signalling a positive shift in its financial trend from flat to positive. The company’s liquidity position has strengthened with record cash reserves, and its long-term returns have consistently outpaced the Sensex benchmark. While the Mojo Grade remains at Strong Sell, reflecting valuation and risk considerations, the operational momentum and improving fundamentals position the company favourably within the NBFC sector.

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