Cholamandalam Investment and Finance Company Limited — Q3 FY26 earnings call

Call held 29 Jan 2026

Management summary

Lodha delivered exceptional Q3 performance with record quarterly presales and strong margin expansion. The company is well-positioned for sustainable growth with significant business development pipeline, expansion into NCR market, and transformational data center opportunity at Palava.

Highlights

  • Best ever quarterly presales of INR 56 billion, growing 25% YoY

  • 9-month presales at INR 146 billion, 70% of INR 210 billion full year guidance

  • Embedded EBITDA margin of approximately 32%

  • Revenue growth of 29% YoY to INR 46.6 billion

  • Business development of INR 340 billion GDV this quarter, reaching ~INR 600 billion for the year

  • Expansion into NCR market with 2 projects worth INR 33 billion GDV

  • Major data center opportunity at Palava with 400 acres and 3 gigawatts of power capacity

Key financials

2 periods

Headline

  • Quarterly Presales
    ₹5,600 Cr
    YoY +25%
  • Revenue from Operations
    ₹4,660 Cr
    YoY +29%
  • Adjusted EBITDA
    ₹1,490 Cr
    YoY +23%
  • PAT
    ₹950 Cr
  • Collections
    ₹3,560 Cr
    YoY -17%
  • Net Debt
    ₹6,170 Cr
  • Business Development GDV
    ₹34,000 Cr

9M

  • Presales
    ₹14,600 Cr

What they filed

Q1 FY27: revenue up 21.9%, net profit up 45.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue6,255 6,733 7,046 7,267 7,491 +20%7,898 +17%8,417 +19%8,856 +22%
Net profit968 1,088 1,260 1,138 1,160 +20%1,290 +19%1,645 +31%1,656 +46%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Presales

  • Full year presales Presales · FY'26 · High confidence INR 210 billion
    we remain on track to achieve our guidance of approximately INR 210 billion of presales for the full year

    — Abhishek Lodha

EBITDA Margin

  • Embedded EBITDA margin EBITDA Margin · FY'26 · High confidence Approximately 33%
    embedded EBITDA margin of approximately 33%

    — Abhishek Lodha

ROE

  • Return on Equity ROE · Medium-term · High confidence Approximately 20%
    ROE on a pro forma basis of approximately 20%

    — Abhishek Lodha

Collections

  • Operating Cash Flow Collections · FY'26 · Medium confidence INR 70 billion plus/minus 5%
    So we will probably be at the INR 70 billion plus/minus 5% number, not the INR 77 billion

    — Abhishek Lodha

Data Center Land Value

  • Land value at Palava data center Data Center Land Value · Next 3 years · Medium confidence INR 50-60 crores per acre
    over the next 3-odd years, we expect the number to be reaching as high as INR 50 crores to INR 60 crores per acre

    — Abhishek Lodha

Risks & concerns

  • Collections decline due to environmental clearance delays

    medium

    17% YoY decline in collections partly due to construction delays from environmental clearances, now resolved since mid-November

    Issue resolved, focusing on construction acceleration

  • Industry volume weakness despite value growth

    low

    Industry seeing volume decline especially in affordable housing segment below INR 75 lakhs, but company gaining market share

    Benefiting from market consolidation toward quality players

  • Concentration risk in quarterly sales performance

    low

    Q3 sales concentrated in South Central Mumbai projects, but non-launch weekly sales remained consistent at INR 3 billion

    Normal quarterly variations with consistent weekly run-rate

Q&A highlights

4 direct
Mumbai demand environment and footfalls Direct
we see footfalls and conversions remaining steady through the course of the last few quarters and in line with what we would have expected at the start of the year

Confirms sustained demand momentum in core Mumbai market despite supply concerns

Asked by Akash Gupta (Nomura)

Construction challenges and execution capabilities Direct
we measure our success in terms of the percentage of units which are delivered within 6 months of our agreement stated time line, and we are able to do a very, very high percentage

Demonstrates strong execution track record amidst industry construction challenges

Asked by Puneet Gulati (HSBC)

Land profitability and pricing strategy Direct
we actually believe that going forward, the land market will turn more favourable to us given our scale, our balance sheet as well as our ability to command a premium

Management confident about maintaining margins despite land price pressures in the industry

Asked by Kunal Tayal (Bank of America)

Data center economics and competitive advantage Direct
our turnkey today with the benefits can come down to maybe $6 million per megawatt, which is much lower than what used to be our global standards of $8 million to $12 million

Quantifies significant cost advantage in data center development through government MoU benefits

Asked by Abhinav Sinha

1 min read 4 chapters

Detailed narrative

Record Financial Performance and Market Leadership

Company delivered best-ever quarterly presales of INR 56 billion with 25% YoY growth, demonstrating strong execution amid challenging market conditions. 9-month presales of INR 146 billion puts the company at 70% of full-year guidance with one quarter remaining. EBITDA margin expansion to 32% reflects operational efficiency and pricing discipline.

Aggressive Business Development and Geographic Expansion

Exceptional business development quarter with INR 340 billion GDV added, bringing yearly total to ~INR 600 billion. Company entering NCR market with 2 projects worth INR 33 billion GDV, following successful pilot-to-growth transition model demonstrated in Bangalore. Total available pipeline now exceeds INR 2 lakh crores for next 5 years.

Transformational Data Center Opportunity at Palava

Palava data center park represents major value creation opportunity with 400 acres and 3 gigawatts power capacity. Government MoU provides 15% capex reduction and 30% operating cost savings for clients. Land values expected to increase from INR 21 crores to INR 50-60 crores per acre over 3 years. Already secured anchor clients AWS and STT with more hyperscalers expected.

Infrastructure Development and Premium Positioning

Major infrastructure connectivity improvements with Palava-Airoli-Mulund Freeway and Mumbai-Nashik Highway completion expected in next 3-4 months. Bullet train connectivity to reduce BKC-Palava travel to under 20 minutes. Company premiumizing Palava residential portfolio with upper mid-income segment expected to reach 50% of sales by end of decade vs 20% currently.

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