Centrum’s report puts growth in assets under management—the loan portfolio managed by these lenders—at around 17%. Net profit across the sector rose 53.4% to ₹6,519 crore, showing that earnings strengthened despite the quarterly slowdown in fresh lending.

The softer quarter followed early vehicle purchases by fleet operators towards the close of the previous financial year. Commercial vehicle lending at Cholamandalam and Shriram Finance declined by 13–15%, while Mahindra Finance recorded a fall of nearly 25%. Sundaram Finance, however, expanded overall lending by 11%, supported by its retail focus.

These lenders are also broadening their business beyond vehicle finance. Loans to SMEs, lending against gold and housing finance are helping reduce reliance on any one segment. At Cholamandalam, non-vehicle products now account for 40% of fresh business, providing another source of growth when vehicle demand weakens.

Loan quality was broadly steady, although Stage 2 and Stage 3 assets increased slightly amid seasonal monsoon-related disruption to transport and farming. The report treats this as temporary rather than a wider deterioration. Management teams expect loan-book expansion of 15–20% over the remainder of FY27, backed by new products and efforts to win market share.