Chennai Cholamandalam Investment and Finance Company Ltd (CIFCL), an NBFC from the Murugappa Group, has guided for a 20-23 per cent growth in assets under management (AUM) for FY27, a growth in line with the 21 per cent growth it achieved in FY26.
“Overall, we have done reasonably good performance this quarter and we expect to continue doing so in the coming year. The disbursement in vehicle finance has been good because the auto segment has also started turning around,” Arul Selvan, President & CFO of Cholamandalam Investment & Finance, told businessline.
Disbursements up 25%
This comes at a time when the NBFC saw disbursements grow by 25 per cent YoY in the quarter ended March 2026 largely led by vehicle finance and other new business areas such as gold loans. However, the guidance has been kept conservative given that the NBFC is closely monitoring the impact of the West Asia war, which it expects to be multi-pronged.
“One [impact] is that it may increase the diesel price and cost of fuel because large part of our customers are vehicle finance customers, where their primary raw material is diesel,” Selvan said. “But our customers are mostly smaller operators, and they do not have long-term contractual obligations, so we do not expect a large impact,” he added.
However, in case of shortage of raw materials and inputs, it could create gaps in production and demand, and then lead to business hit for transport operators, he said.
In this regard, the management has created an overlay of ₹200 crore as a measure against the West Asia war.
On the impact of the lower-than-expected monsoons, the company said it is monitoring whether the situation will be concentrated in certain parts of the country or will it more wide spread.
Published on May 5, 2026