Uploaded Transcript of the Earnings Call

4 August, 2026 The Secretary The Secretary National Stock Exchange of India Limited BSE Ltd. Trade World, 4th Floor, 1st Floor, P.J. Towers Kamala Mills Compound, Dalal Street, Fort, Senapati Bapat Marg, Lower Parel, Mumbai 400 001 Mumbai 400 013 NSE SCRIP CODE: CHOLAFIN EQ BSE SCRIP CODE: 511243 Dear Sir / Madam, Sub.: Transcript of Earnings call for the quarter ended 30 June, 2026 We refer to our letter dated 28 July, 2026, informing you regarding the upload of the audio recording of the Earnings Call conducted in connection with the un-audited financial results for the quarter ended 30 June, 2026. In this regard, we enclose a copy of the Transcript of the Earnings Call, which has also been uploaded on the Company’s website today in the following link: https://www.cholamandalam.com/investors/call-transcript We request you to take the above on record. Thanking you, Yours faithfully, For Cholamandalam Investment and Finance Company Limited P Sujatha Company Secretary Encl.: as above “Cholamandalam Investment and Finance Company Limited Earnings Conference Call” July 28, 2026 MANAGEMENT: MR. VELLAYAN SUBBIAH – EXECUTIVE CHAIRMAN – CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED MR. RAVINDRA KUNDU – MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER – CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED MR. ARUL SELVAN – CHIEF FINANCIAL OFFICER – CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED MODERATOR: MR. NISCHINT CHAWATHE – KOTAK SECURITIES LIMITED Page 1 of 19 Cholamandalam Investment and Finance Company Limited July 28, 2026 Nischint Chawathe: Good evening. Welcome to the earnings conference call of Cholamandalam Investment and Finance Company Limited. We discuss 1Q FY27 earnings today. The senior management of the company is represented by Mr. Vellayan Subbiah, Executive Chairman; Mr. Ravindra Kundu, Managing Director and CEO; and Mr. Arul Selvan, Chief Financial Officer. I would now like to hand over the call to Vellayan for his opening comments, after which we'll take Q&As. Over to you, Vellayan. Vellayan Subbiah: Thank you, Nischint, and thank you, Kotak, for hosting the call. Good afternoon, everyone. I'm happy to take you through our performance for Q1 FY27. Chola continued its strong growth trajectory in Q1, reporting aggregate disbursements of INR29,612 crores, up 22% year-on-year, reflecting healthy performance across all major businesses. As a result, our AUM expanded 23% year-on-year to INR2,54,392 crores, underscoring the strength of customer demand and effectiveness of distributing and operating model. The vehicle finance business maintained its growth momentum with disbursements increasing 21% year-on-year during the quarter. Growth was aided by healthy demand trends across key vehicle categories and deep market penetration, resulting in auto AUM growing 19% to INR1,24,132 crores. The MSME portfolio also demonstrated continued resilience with disbursements growing 6% year-on-year and AUM increasing 26% year-on-year. The segment benefited from sustained customer acquisition and continued expansion in underpenetrated markets. Within the segment, LAP AUM grew 23% year-on-year to INR54,130 crores. SME AUM and SBPL AUM recorded robust growth of 39% and 40%, reaching INR9,923 crores and INR3,730 crores. Consumer segment delivered strong growth during the quarter with disbursements increasing 52% year-on-year, reflecting sustained traction across all product categories and continued customer acquisition momentum. As a result, AUM grew 24% year-on-year to INR41,671 crores. Within the segment, the home loans continue to scale steadily with AUM increasing 22% year-on-year to INR23,644 crores. CSEL AUM grew up 12% to INR15,884 crores, while gold loans witnessed strong expansion with AUM reaching INR2,143 crores, supported by growing customer acceptance and network expansion. NIMs improved by 42 bps year-on-year in Q1, supported by lower funding costs. Credit costs declined by 24 bps year-on-year, aided by healthy collections and continued stability in portfolio performance. Continued improvement in margins and asset quality drove stronger profitability with ROA increasing to 3.7% in Q1 FY27 from 3.1% a year earlier, while ROE stood at 21.2%, reflecting the company's disciplined growth strategy and efficient capital deployment. Company continues to maintain a strong liquidity and capital position with liquid assets of INR23,984 crores, including undrawn sanctioned lines. As of June 2026, the capital adequacy ratio of the company stood at 19.81%, with Tier 1 capital at 14.81%, providing ample headroom to support future growth. Of the INR2,000 crores CCD Page 2 of 19 Cholamandalam Investment and Finance Company Limited July 28, 2026 issuance, INR1,370 crores were converted into equity during FY26, followed by a further INR200 crores conversion in July 2026. The remaining INR430 crores of CCDs is expected to be converted in October 2026, further reinforcing the company's capital base. Nischint and team, with that, I will stop and turn it over to participants for questions. Nischint Chawathe: The first question comes from Kunal Shah of Citi. Kunal Shah: Yes. So firstly, if you can just highlight in terms of the overall macro environment, the -- any business impact that we are looking in any of the product segments? And would there be any risk to the credit cost guidance, which we had given earlier of, say, almost like 1.5-odd percent for FY27 because this quarter, we have seen increase across the board, say, in Stage 3 for most of the product segments, except for CSEL. Ravindra Kundu: Yes. So first of all, the net credit cost has already come down to 1.5% from 1.8% of the last year. So, we have achieved the target. I don't know why you're saying it has gone up. Vellayan Subbiah: No, he's concerned about GNPA as well. Ravindra Kundu: GNPA, you're talking about? Kunal Shah: Yes. Ravindra Kundu: GNPA is basically it is a seasonal effect. It normally goes up from quarter 4 to quarter 1, and it went up significantly higher last year. as compared to that, it has gone up by only 25 basis points. So that way, our start has been fantastic in terms of Stage 3 and Stage 2 movement from quarter 4 to quarter 1. And that is the reason there has been an improvement in net credit cost as against the last year of 1.8% to 1.5%. Now coming to the disbursement and market, what we are seeing with respect to the businesses what we are doing. As of now, we see that all the business line, whether it is vehicle finance or loan against property or housing loan or SME or SBPL or CSEL or gold and even consumer durable for us, we are seeing quite a good trend even in the month of July and likely to be better in the coming quarters also. We haven't seen any adverse impact on our disbursement or the growth, whatever we have been discussing that 22%, 23%, we're still holding it. Kunal Shah: Okay. And no product segments wherein you see any risk cropping up in second or third quarter because of be it a below-average monsoon or maybe the geopolitical conflict, any product segment wherein you could see maybe a slightly higher stress? Ravindra Kundu: So currently, that visibility is not there what is going to happen in quarter 3. as the rainy season is not yet over. So, we are expecting that in July, whatever days left out and in August there will be good rain. And as you know that the prediction is 92% rain, which is slightly below average as against the 96%. If that happens, then it will not be so bad. And therefore, we are continuing to hope that the quarter 3, quarter 4 also will be good with respect to all the product segments. Page 3 of 19 Cholamandalam Investment and Finance Company Limited July 28, 2026 Kunal Shah: Sure. And just a couple of data-point questions. One is on the used vehicle disbursement side. Is it again more of a seasonal? It's down maybe sequentially as well as in terms of the proportion in the overall vehicle finance disbursements. And second, in [Showing first 8,000 characters — download PDF for full document]