Cholamandalam Financial Holdings Ltd — Q4 FY26
Chola MS reported Q4 FY26 GDPI of ₹20,048 crore, impacted by the loss of crop insurance business (₹590 crore for the year) and a conscious reduction in two-wheeler premium.
bearish
medium
Financial stats pending filing verification
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
45%Questions answered3Evaded / deflected10Questions audited
Partial answer
High priority
Will growth strategy shift to direct business after GDPI decline?
Asked by Sankit God, Aventus Park
Management described broad strategy but gave no quantitative growth guidance or market share targets.
no specific growth target givenqualitative only
Read the exchange
Question
the G GDPI actually the direct premium has declined in the current year... will the approach to the business going ahead will be little different whether the focus will be more on direct business... which lines will you try to recover back to deliver growth?
Management (likely Suri or Rajiv Kumar Swami)
We were impacted by the loss of crop of about 598 crores... Chola MS will be participating in the crop business... we should be looking at even growing that piece of business... we have been growing in the car side steadily... commercial vehicle book is fairly stable... we also have plans to grow the commercial space.
Partial answer
High priority
How will ROE improve if leverage stays low?
Asked by Sankit God, Aventus Park
Management cited pricing actions but did not quantify the expected improvement in combined ratio or ROE.
no specific combined ratio targetno ROE bridge provided
Read the exchange
Question
if leverage remains at 5.5... your combined on the IAP basis should go to closer to maybe 108 109 to deliver 16 17%... just want to understand where the lever will come from in improvement in the core?
Management (likely Suri or Rajiv Kumar Swami)
the current year in terms of the claims ratio I admit has been bad for us... the OD is where while it has risen... the delta has been about 10... we have already commenced the necessary activities to bring down the loss ratio... over the last 2 to 3 months we have seen about 7 to 8% improvement in price realization... that should help us in bringing the combined ratio back to a controllable level.
Answered
Medium priority
Will IFRS adoption change reinsurance strategy for retail lines?
Asked by Sankit God, Aventus Park
Management gave a specific retention percentage and stated IFRS would be a net benefit.
Read the exchange
Question
whether there will be a different approach to the reinsurance business especially the retail lines... the benefit what typically every insurance company gets on reinsurance commissions inward with respect to the long-term plans might change in IFRS accounting.
Management (likely Suri or Rajiv Kumar Swami)
intrinsically Chola is a company where retention levels are high... our retail retention on a weighted basis would be somewhere at about 78 plus... even when IFRS comes with the DAC coming in on both commission and reinsurance commission side... it'll only benefit the net position.
Evasive
Medium priority
What would the claims ratio be under IFRS?
Asked by Panti Chawla, Ask
Management refused to provide a specific IFRS claims ratio, only a qualitative description.
no specific number givenonly qualitative overview
Read the exchange
Question
if I take the current number of FI26 on claims ratio as 81.2%. While going towards the IFRS similar number what will be the similar number in IFRS accounting?
Management (likely Suri or Rajiv Kumar Swami)
I can only broadly give you an overview... as a motor dominant business the provisioning on the MOTP side is fairly large and motor TP will have a discounting element as you move into IFRS that will bring in a significant amount of benefit back into the P&L.
Deflected
High priority
Can 15% ROE be achieved next year with IFRS benefit?
Asked by Panti Chawla, Ask
Management corrected the IFRS timeline but did not address whether 15% ROE is achievable next year.
corrected the timelinedid not answer the ROE question
Read the exchange
Question
you have guided for the ROE of around 15% right our target is to achieve it so can we say that next year it is possible to achieve that RO of 15% being beneficial which we are getting from IFRS point of view.
Management (likely Suri or Rajiv Kumar Swami)
just to clarify, we will be transitioning to IFRS from April 27. So we are not migrating to IFRS... it's in FI28, right? Yes.
Partial answer
Medium priority
Will expense ratio remain stable or decline?
Asked by Panti Chawla, Ask
Management said the advantage won't be lost but did not say if ratio will improve or stay flat.
no specific guidance on directionqualitative only
Read the exchange
Question
on the expense ratio... we have achieved the target... how one should see this ratio going forward it will remain stable or we should see decline?
Management (likely Suri or Rajiv Kumar Swami)
even for a moment assuming that the regulator doesn't bring in any change... the 30% would be the norm... I don't see any reason why that advantage will get fritted away in the next year or in the coming years.
Answered
Medium priority
Why did solvency ratio drop and how will it improve?
Asked by Krashna Koka, SDS
Management explained the cause and stated improvement will come with claims ratio improvement.
Read the exchange
Question
This year it's on 1.96 earlier versus the historical levels of around 2 to 2.15. So how should we read this and how will we improve our levels going forward?
Management (likely Suri or Rajiv Kumar Swami)
The solvency computation is a function of the premium growth as well as the claims growth... this year the claims growth is higher... it has pulled in more capital bringing the solvency level down from 2.18 to 1.96... with the improvement in the claims ratio it should again move back.
Partial answer
Medium priority
What is the strategy for motor business renewal vs fresh?
Asked by Krashna Koka, SDS
Management described strategy qualitatively but did not provide FY26 performance numbers for renewal vs fresh.
no specific renewal rate or growth numbers given
Read the exchange
Question
if you could provide more color on the motor business with respect to the renewable and fresh business and how it performed in FY26 and what is our strategy for the upcoming year?
Management (likely Suri or Rajiv Kumar Swami)
we continue to have that we've been fairly steady in terms of the market share... cars is something that has been going up from 35 39 42 and 49... we will continue to stay focused on cars... the focus will now be on pushing up the renewal rate... we should be launching Chola exe an operating app... that should also give a fillip to our renewal ratios.
Partial answer
High priority
What is the strategy to reduce underwriting losses?
Asked by Krashna Koka, SDS
Management cited pricing actions and efficiency but gave no specific target for combined ratio improvement.
no quantified target for underwriting loss reduction
Read the exchange
Question
more on the underwriting business if underwriting part any strategy way ahead to reduce underwriting losses.
Management (likely Suri or Rajiv Kumar Swami)
the industry has seen the motor combined ratio levels inch up... we are prudent in terms of our reserving... operationally we continue to be efficient... on the motor OD side we have affected a pricing correction whereby we are seeing somewhere about 7 to 8% improved pricing... TP of course is a government decision.
Declined
High priority
Can you provide guidance on combined ratio?
Asked by Ritika Dua, Bandan
Management explicitly declined to provide combined ratio guidance.
refused to give guidancedeferred to ROE target
Read the exchange
Question
Guidance on combined ratio would help.
Rajiv Kumar Swami
we typically don't give guidance from a forward-looking perspective... the intent would be from medium to long-term perspective maintain the 15% plus ROE guidance... would not want to venture into giving any guidance on what we would do on combined.