Altman Z″
Needs withheld for this sector: Built on manufacturers' working capital and asset turnover; a lender always looks distressed on it..
This is a lending business. Cash-flow reads that suit a manufacturer do not apply: disbursing loans is an operating outflow, so negative operating cash is normal and not a warning sign. Leverage is the raw material of the model, not a red flag on its own. Reads that would mislead here have been withheld rather than shown with a caveat.
A plain-language read of the business, how it actually earns, where the edge is, and the economics of every reported segment — taken from the annual report and investor presentation, not a one-line industry label.
How to read this: Price shows the closing price with its 50-day (amber) and 200-day (grey) averages; bars at the bottom are daily volume, green on up days and red on down days; dashed lines mark the 52-week high and low. vs Nifty 50 starts both at 100 so you can see which did better over the period. P/E shows what the market paid for each rupee of profit, inside the band it usually trades in. Drawdown shows how far below its best price the share has been. Hover anywhere for the numbers on that day.
The three to six things that actually matter about this company, each with the exact filing and note it came from — never a fact without the context that makes it meaningful.
What the numbers mean when read together — computed from the filings, not a score.
Both revenue and profit grew over the last year (17.5% and 24.3%) — growth is translating to the bottom line.
Why this reading: A positive signal in the numbers, shown for balance alongside the concerns.
Trailing revenue ₹40,890 cr, trailing profit ₹6,015 cr. Profit growing at least as fast as revenue indicates operating leverage or pricing power.
Every score below is calculated here from the reported numbers — none of it is asserted. Open the notebook at the foot of the section to see each formula with this company's figures in it.
Needs withheld for this sector: Built on manufacturers' working capital and asset turnover; a lender always looks distressed on it..
Needs withheld for this sector: Five of its nine tests (cash flow, accruals, current ratio, leverage, asset turnover) mislead on a lending balance sheet..
Needs withheld for this sector: Its receivable, margin and accrual terms do not describe a lender's accounts..
Accruals are 14.4% of assets.
DuPont decomposition — Devised inside the DuPont Corporation in the 1920s and still the standard way to read a return on equity.
Splits return on equity into its three sources, so the same headline number can be traced to very different businesses.
How to read itA 20% ROE built on margin and turnover is a different proposition from a 20% ROE built on 3× leverage. The first survives a downturn; the second amplifies it.
Where it failsA single year. Negative equity makes it meaningless. Leverage is structural for lenders, so the third term carries no signal there.
cumulative operating cash flow ÷ cumulative net profit
₹-163,827 cr ÷ ₹26,999 cr, over 12 years
-6.07×
Below 1.0 and persistent means profit is being recognised before the cash arrives.(net profit − operating cash flow) ÷ average total assets
(₹5,485 − ₹-30,033) cr ÷ average assets
14.4%
The share of profit that is accounting entries rather than cash. Above ~10% is where accruals start to dominate.net margin × asset turnover × leverage
14.0% × 0.15 × 17.36
35.5%
Splits ROE into whether returns come from operations or from borrowing.EBIT ÷ finance cost
₹21,714 cr ÷ ₹14,388 cr
1.51×
How many times operating profit covers the interest bill.Needs more balance-sheet detail (only 3 of 6 flags testable).
Models that need these lines are withheld rather than estimated: net worth, current assets, current liabilities, trade receivables, inventory, net block. Nothing on this page is back-solved from a figure the company did not publish.
Each framework below is a set of stated, mechanical criteria from published work, run against this company's own filed numbers. Passing or failing a screen is not a verdict — different frameworks disagree by design, and that disagreement is itself informative.
Benjamin Graham's stated criteria for a defensive stock, applied to the filed numbers. A company failing several is not disqualified — Graham designed these to be deliberately strict.
Two ratios only: what the business earns on its capital, and what you pay for those earnings. Designed to be ranked across a universe rather than read in isolation.
The fundamental half of William O'Neil's framework. The market and leadership components are judgement calls and are not scored here.
The characteristics long-term holders commonly look for: cash-backed earnings, high returns on capital, and debt that never forces a decision.
Median of the companies we hold in the same sector (Financial Services). Every figure on both sides is the live feed's trailing twelve months, so the two are measured the same way whatever depth of extraction this company has had. A number only means something next to something else — expensive against the market and cheap against peers are different facts.
Bars are revenue; the line is net margin. Revenue rising while the line falls is the shape worth noticing.
Operating cash first, then what the business spent and raised.
One year is a snapshot. These are the two lines that matter across a cycle.
Set your own assumptions and watch the numbers move. A scenario calculator — the outputs are the arithmetic of your inputs.
One canonical set of figures — the same numbers used everywhere else on this page and on the screener.
How the register has moved over recent quarters — the direction matters more than the level.
Promoter held steady from 46.38% to 46.39% across these quarters.
FII trimmed from 16.34% to 12.44% across these quarters.
MF rose from 21.06% to 24.79% across these quarters.
Other rose from 16.22% to 16.38% across these quarters.
| Metric | Q2 FY27 | Q2 FY26 |
|---|---|---|
| AUM (₹ cr) | 268,009 | 214,906 |
| AUM growth YoY | 24.71% | 20.67% |
| Disbursements (₹ cr) | 35,872 | 24,442 |
| Credit cost | 1% | 0.5% |
| Capital adequacy | 20.62% | 19.21% |
| Consolidated Loan Assets (₹ crore) | 240,357 | — |
From the quarterly results and the earnings call, read by FinMinutes. Latest quarter, read in full.
Read using the NBFCs and housing finance framework (named in the filing read). Primary valuation lens: P/B against RoA and growth.
Read more closely in this sector: Stage 2 movement against Stage 3 · ALM gap within one year · Write-offs against slippages · Lending to group companies · Unsecured or microfinance growth against the total book.
The shape of the business over time (annual) — read the direction, not the single print.
| Line | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Revenue from operations | 13,900 | 14,644 | 18,154 | 25,830 | 33,196 | 39,156 |
| Other income | 60 | 92 | 221 | 256 | 262 | 414 |
| Depreciation | 145 | 154 | 176 | 248 | 296 | 333 |
| Finance cost | 4,608 | 4,328 | 5,778 | 9,249 | 12,494 | 14,388 |
| Profit before tax | 2,400 | 3,044 | 3,824 | 5,200 | 6,400 | 7,326 |
| Net profit (owners) | 1,764 | 2,239 | 2,810 | 3,851 | 4,740 | 5,485 |
| EPS (₹) | 43.93 | 54.49 | 68.71 | 94.39 | 115.76 | 130.01 |
Exceptional items, total income and EBITDA are read from the filed statements.
| Metric | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 6,317 | 6,795 | 7,066 | 7,633 | 8,090 | 8,489 | 8,913 | 9,296 | 9,461 | 9,949 | 10,366 | 11,114 |
| Other Income | 55 | 48 | 110 | 45 | 91 | 106 | 98 | 88 | 130 | 137 | 156 | 103 |
| Expenses | 2,898 | 2,978 | 2,932 | 3,253 | 3,537 | 3,772 | 3,709 | 4,142 | 4,359 | 4,487 | 4,541 | 4,721 |
| Depreciation | 52 | 55 | 88 | 70 | 74 | 72 | 79 | 79 | 83 | 87 | 84 | 87 |
| Finance cost | 2,209 | 2,445 | 2,582 | 2,796 | 3,058 | 3,280 | 3,361 | 3,468 | 3,518 | 3,648 | 3,755 | 4,007 |
| Profit before tax | 1,213 | 1,363 | 1,574 | 1,559 | 1,513 | 1,471 | 1,862 | 1,696 | 1,632 | 1,863 | 2,142 | 2,400 |
| Net Profit | 888 | 1,027 | 1,144 | 1,160 | 1,125 | 1,093 | 1,362 | 1,260 | 1,214 | 1,386 | 1,626 | 1,789 |
| EPS | 22.41 | 24.88 | 27.32 | 29.20 | 27.99 | 25.89 | 32.68 | 30.81 | 29.29 | 33.32 | 36.59 | 42.92 |
| Item | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Equity Capital | 19 | 19 | 19 | 19 | 19 | 19 |
| Reserves | 5,367 | 6,427 | 7,642 | 10,223 | 12,496 | 15,435 |
| Net block | 447 | 464 | 623 | 1,784 | 2,029 | 2,209 |
| CWIP | 10 | 40 | 60 | 35 | 54 | 97 |
| Investments | 11,678 | 13,282 | 17,536 | 20,058 | 24,271 | 24,968 |
| Total Assets | 88,616 | 97,771 | 131,033 | 176,917 | 224,614 | 268,331 |
| Line | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Cash from operations | -9,719 | -5,738 | -29,329 | -35,726 | -34,201 | -30,033 |
| Cash from investing | -62 | -135 | 295 | -2,625 | -1,038 | -2,528 |
| Cash from financing | 7,688 | 7,073 | 27,288 | 38,269 | 39,652 | 35,650 |
| Free cash flow | -9,781 | -5,874 | -29,586 | -36,887 | -34,528 | -30,365 |
| Net change in cash | -2,093 | 1,199 | -1,746 | -82 | 4,413 | 3,089 |
Cash from operations is the number profit has to answer to. Free cash flow is what remains after the business pays for its own growth.
The part no one reads: the auditor's opinion, the contingent liabilities buried in the notes, the covenants, and the claims in the deck placed beside the figures that test them.
Where analysts pressed management on the earnings call, and exactly how management answered — the questions that were hardest to answer are usually the ones that matter.
The same read, applied to the companies this one competes with.
Cholamandalam Financial Holdings Ltd. reported total income of ₹11,264 cr for July to September 2026, +19.2% on the year and +1.6% on the quarter. That is slower than this quarter has grown in recent years (+22.4% on average). It is the highest quarterly income in the last 12 quarters on record. Over the last four quarters income comes to ₹42,662 cr, +18.0% on the four before.
Net interest income, interest earned less interest paid, was ₹6,930 cr, +16.8% on the year and −2.1% on the quarter. For a lender this is the core earnings line: it shows whether the loan book and its pricing are growing faster than the cost of funds.
Net profit was ₹1,520 cr, +25.2% on the year and −15.0% on the quarter, with earnings per share of ₹34.22. The tax rate of 25% is in line with its recent average. Profit over the last four quarters totals ₹6,321 cr, +28.2% on the four before.
Of the 48 companies in NBFCs and housing finance that have reported Q2 FY27 so far, Cholamandalam Financial Holdings Ltd. ranks 24th on profit growth; the sector median is +25.1%.
An NBFC's quarter turns on loan growth, its cost of borrowing and credit costs; profit can rise for a while simply because provisions fall.
No check fired. That is a statement about the checks below, not a verdict on the company.
Could not run on this quarter: Exceptional items that recur, IPO money used as stated, Related-party transactions, Promoter pledges and allotments, Earlier promises against delivery, Asset quality (lenders), Net interest margin (lenders). The filing did not carry these lines.
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Balance sheet | Sep '26 | Last year end | Change |
|---|---|---|---|
| Trade receivables | ₹464 cr | ₹327 cr | ▲ 41.8% |
| Cash | ₹7,942 cr | ₹8,475 cr | ▼ 6.3% |
| Bank balances | ₹5,959 cr | ₹6,501 cr | ▼ 8.3% |
| Trade payables | ₹224 cr | ₹339 cr | ▼ 34.0% |
| Net block | ₹2,403 cr | ₹2,046 cr | ▲ 17.5% |
| Capital work in progress | ₹193 cr | ₹27.5 cr | ▲ 600.7% |
| Equity | ₹17,124 cr | ₹15,454 cr | ▲ 10.8% |
| Total assets | ₹2.94 lakh cr | ₹2.68 lakh cr | ▲ 9.5% |
| Cash flow, year to date | This year | Last year |
|---|---|---|
| Operating cash flow | −₹20,956 cr | −₹11,350 cr |
| Investing cash flow | −₹495 cr | −₹192 cr |
| Financing cash flow | ₹20,918 cr | ₹11,896 cr |
| Dividends paid | −₹58.1 cr | −₹57.1 cr |
Other matter 1: “”The Statement includes the consolidated audited financial results of one subsidiary which reflects total assets of INR 2,70,022.24 crores as at September 30, 2026, total revenue of INR 9,270.92 crores and INR 18,127.21 crores, profit after tax of INR 1,630.34… Read in full
The Statement includes the consolidated audited financial results of one subsidiary which reflects total assets of INR 2,70,022.24 crores as at September 30, 2026, total revenue of INR 9,270.92 crores and INR 18,127.21 crores, profit after tax of INR 1,630.34 crores and INR 3,286.56 crores and total comprehensive income of INR 1,763.61 crores and INR 3,394.55 crores for the quarter and half-year ended September 30, 2026 respectively and net cash outflows of INR 453.14 crores for the half-year ended September 30, 2026.
Other matter 2: “The Statement includes Group's share of profit after tax of INR 0.41 crore and INR 0.88 crore for the quarter and half-year ended September 30, 2026 respectively in respect of a joint venture.”
Other matter 3: “”The unaudited financial results of CMSGICL, a subsidiary, have been prepared in accordance with the accounting principles generally accepted in India including the Accounting Standards specified under Section 133 of the Act read with relevant rules and requirements of the… Read in full
The unaudited financial results of CMSGICL, a subsidiary, have been prepared in accordance with the accounting principles generally accepted in India including the Accounting Standards specified under Section 133 of the Act read with relevant rules and requirements of the Insurance Act, 1938, as amended by the Insurance Laws (Amendment) Act, 2015, the Insurance Regulatory and Development Authority Act, 1999 (as amended), the Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment function of Insurers) Regulations, 2024, Circulars / Orders / Directions issued by the Insurance Regulatory and Development Authority of India in this regard, to the extent applicable and other recognized accounting practices and policies.
Filing p. consolidated limited review report p.1-4
Subsidiary CMSGICL obtained entity-level regulatory forbearance from IRDAI for the implementation of Ind AS for FY 2026-27. Insurance contracts for consolidation purposes are recognised in accordance with Ind AS 104. (p. note 3 to consolidated results)
Impact of revised wage definition under New Labour Codes assessed at Rs 57.40 crore for the year ended March 2026; company continues to monitor finalisation of Central and State Rules. (p. note 4 to consolidated results)
Tax: Consolidated tax expense of ₹511.27 crore (current tax ₹631.73 crore, deferred tax credit ₹113.87 crore, short/excess provision ₹6.59 credit) on Profit before tax of ₹2,031.38 crore for Q2 FY27
| Metric | Q2 FY27 | Q2 FY26 |
|---|---|---|
| AUM (₹ cr) | 268,009 | 214,906 |
| AUM growth YoY | 24.71% | 20.67% |
| Disbursements (₹ cr) | 35,872 | 24,442 |
| Credit cost | 1% | 0.5% |
| Capital adequacy | 20.62% | 19.21% |
| Consolidated Loan Assets (₹ crore) | 240,357 | — |
Worked out from filed numbers. AUM YoY Growth Rate: (₹2,68,009 crore - ₹2,14,906 crore) / ₹2,14,906 crore * 100 = 24.71% (reported as 23-25% in presentation)
Asset quality across vehicle finance and LAP segments remains well-controlled, supported by strong collection efficiency and GenAI-powered recovery mechanisms across customer segments.
Credit quality remains stable with controlled loan loss provisions across core loan portfolios.
As per IND AS ALM Statement as of Sept 30, 2026, cumulative total inflows within 1 year stand at ₹1,02,682.35 crore against cumulative total outflows of ₹95,209.42 crore, resulting in a positive cumulative gap of +₹7,472.93 crore (+7.85% of outflows).
Liquidity profile is comfortably positive across all short-term buckets with zero cumulative negative gap within 1 year.
Loan loss provisions remain disciplined (Home Loans loan losses at 1.0% in Q2 FY27 vs 0.5% in Q2 FY26), supporting healthy segment PBT expansion across LAP (+38% YoY to ₹596 crore) and Home Loans (+24% YoY to ₹271 crore).
Provisioning remains range-bound without excessive write-off spikes dragging down segment profitability.
As an RBI-registered Core Investment Company (CIC), investment in equity shares of group companies stood at ₹1,301.65 crore as of September 30, 2026, representing 99.699% of net assets (against RBI regulatory minimum requirement of 90.000%) with an outside liabilities ratio of 0.0001 (against regulatory maximum of 2.50).
Complies comfortably with all CIC regulatory capital, leverage, and group holding thresholds.
Consumer & Small Enterprise Loan (CSEL) disbursements reached ₹4,339 crore in Q2 FY27 (+77% YoY vs ₹2,453 crore in Q2 FY26), representing 12% of total disbursements (₹35,872 crore) and 7% of total AUM (₹17,216 crore out of ₹2,48,045 crore).
Unsecured consumer/SME lending growth (+77% YoY) is expanding rapidly but remains a controlled 7% share of total AUM.
Read using the NBFCs and housing finance framework (named in the filing read). Primary valuation lens: P/B against RoA and growth.
Read more closely in this sector: Stage 2 movement against Stage 3 · ALM gap within one year · Write-offs against slippages · Lending to group companies · Unsecured or microfinance growth against the total book.
| Metric | Guidance | For | Against earlier guidance |
|---|---|---|---|
| ICRA Affordable Housing Finance Companies AUM Growth Guidance Range | 19–21 % | FY2027 | unchanged or first given |
Held for next quarter's said-then-did check.
| Segment | Revenue | YoY | Result | YoY |
|---|---|---|---|---|
| Financing | ₹9,271 cr | ▲ 23.8% | ₹2,187 cr | ▲ 39.8% |
| Insurance | ₹2,079 cr | ▲ 1.6% | −₹169 cr | ▼ 373.0% |
| Others | ₹31.0 cr | ▲ 3.1% | ₹30.2 cr | ▲ 3.0% |
| Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total income | ₹6,795 cr | ₹7,066 cr | ₹7,633 cr | ₹8,090 cr | ₹8,489 cr | ₹8,913 cr | ₹9,296 cr | ₹9,450 cr | ₹9,949 cr | ₹10,366 cr | ₹11,083 cr | ₹11,264 cr |
| YoY | — | — | +36% | +28% | +25% | +26% | +22% | +17% | +17% | +16% | +19% | +19% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | — | — |
| Tax rate | 25% | 27% | 26% | 26% | 26% | 27% | 26% | 26% | 26% | 24% | 25% | 25% |
| Net profit | ₹1,027 cr | ₹1,144 cr | ₹1,160 cr | ₹1,125 cr | ₹1,093 cr | ₹1,362 cr | ₹1,260 cr | ₹1,214 cr | ₹1,386 cr | ₹1,626 cr | ₹1,789 cr | ₹1,520 cr |
| YoY | — | — | +46% | +27% | +6% | +19% | +9% | +8% | +27% | +19% | +42% | +25% |
| EPS | ₹24.88 | ₹27.32 | ₹29.20 | ₹27.99 | ₹25.89 | ₹32.68 | ₹30.81 | ₹29.28 | ₹33.32 | ₹36.59 | ₹42.92 | ₹34.22 |
| Flags | · | · | ✓ | ✓ | 1 | 1 | ✓ | ✓ | ✓ | ✓ | ✓ | 1 |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.