Cholamandalam Investment and Finance Company (CIFC IN) – Q4FY26 Result Update – Strong growth with improving asset quality – BUY
Published on 04 May 2026
Q4 disbursements saw YoY growth of 25% with a pick-up across segments, resulting in AUM growth of 21% YoY. Factoring in sustained momentum, we build in AUM growth of ~22%/ 21% in FY27/ FY28E. We expect NIM (calc.) to be stable at ~7%, and higher incremental yield to compensate for a rise in CoF. Opex ratio is likely to see improvement led by productivity gains. Asset quality improved QoQ and credit cost stood at 1.6%, with further moderation expected in H1FY27. We build in credit cost of 1.6%/1.5% for FY27/FY28E supported by recovery in VF and CSEL segments. We increase our estimates given the positive outlook on growth, credit cost and opex improvement with FY28E P/ABV multiple of 3.8x (vs. 3.7x earlier). Retain ‘BUY’ with TP of INR1,950.
