Cholamandalam Investment and Finance Company (CIFC IN) – Q1FY27 Result Update – Growth intact; margin and credit cost remain supportive – ACCUMULATE
Published on 29 Jul 2026
Q1 disbursements saw YoY growth of 22% led by VF and new business segments, resulting in AUM growth of 22% YoY. We expect growth momentum to sustain, supported by market share expansion in non-VF segments and build an AUM growth of 23%/ 22% for FY27E/FY28E. NIM moderated marginally in Q1; however, we expect it to be range-bound at ~7% in FY27E supported by CCD conversion, stable CoF and favorable product mix. Operating efficiencies aided improvement in opex ratio; branch expansion and productivity gains are expected to support profitability. Asset quality witnessed seasonal moderation though credit cost remained controlled at 1.5%, with further improvement expected. We remain conservative and build a credit cost of 1.6%/1.5% for FY27/FY28E. We slightly tweak our estimates given the positive outlook on growth, credit cost and opex improvement with an unchanged FY28E P/ABV multiple of 3.8x. Maintain ‘Accumulate’ with TP of INR1,950.
