3 Lending and Funding Platform Stocks With a Strong Future Roadmap: Cholamandalam Investment and Finance Company, Bajaj Finance and Northern Arc Capital
- October 12, 2026
- Posted by: Lakshit Sharma
- Category: Best Stocks
Chola Rs 1,587.60, P/E 22.95. Bajaj Finance Rs 960.00, P/E 28.77. Northern Arc Rs 281.45, P/E 10.35. Closing prices of 9 Oct 2026.
Quick Answer
Lending and funding platform stocks with the clearest long-term roadmaps today include Chola in vehicle finance and home equity loans, Bajaj Finance in consumer, small business and mortgage lending and Northern Arc in funding for microfinance and small business lenders. FY26 revenue growth was 20.6% at Chola, 19.1% at Bajaj Finance and 14.6% at Northern Arc. P/E stands at 22.95 for Chola (industry 17.72), 28.77 for Bajaj Finance (industry 17.72) and 10.35 for Northern Arc (industry 17.72). Demand cycles, input costs and valuation decide how much of that growth the market keeps paying for, so each company’s risks need equal attention.
Lending and funding platform stocks give investors exposure to loans for vehicles, consumer purchases and small businesses, and funding for smaller lenders. Loan growth, funding costs and credit quality decide how much of that demand turns into profit.
This list covers three lending and funding platform stocks: Cholamandalam Investment and Finance Company for vehicle finance and home equity loans, Bajaj Finance for consumer, small business and mortgage lending and Northern Arc Capital for funding for microfinance and small business lenders. Every figure comes from the latest reported financials and the 9 October 2026 market close. Companies without complete current figures were left out.
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What Are Lending and Funding Platform Stocks?
Lending and funding platform stocks are shares of companies that lend to consumers, vehicle buyers and small businesses, or fund other lenders. Results depend on loan growth, funding costs and credit quality, so funding costs and credit quality separate the stronger names.
Lending and Funding Platform Stocks at a Glance
The table compares size, valuation, return on equity and debt for the three lending and funding platform stocks as of the 9 Oct 2026 close.
| Company | CMP (Rs) | Market Cap (Rs Cr) | P/E | Industry P/E | ROE | Debt to Equity |
|---|---|---|---|---|---|---|
| Cholamandalam Investment and Finance Company | 1,587.60 | 131,995 | 22.95 | 17.72 | 17.18% | 6.93 |
| Bajaj Finance | 960.00 | 593,956 | 28.77 | 17.72 | 16.68% | 3.82 |
| Northern Arc Capital | 281.45 | 4,549 | 10.35 | 17.72 | 10.42% | 3.15 |
Among non-banking lender stocks, Chola and Bajaj Finance trade at a premium to the industry P/E, while Northern Arc trades at a discount.
Why Do Lending and Funding Platform Stocks Have a Strong Roadmap in India?
Lending and funding platform stocks have a strong roadmap in India because formal credit is still deepening in India, and lenders with strong underwriting and funding access can keep growing their loan books. Three drivers stand out.
- Credit penetration: Many households and small firms still depend on informal loans.
- Funding access: Strong ratings help lenders raise money at fair rates.
- Digital underwriting: Data tools speed up approvals and lower costs.
Cholamandalam Investment and Finance Company: Vehicle and Small Business Loans Anchor the Roadmap
Chola’s roadmap rests on vehicle finance, home equity and small business loans delivered through a wide branch network, with demand for commercial vehicle and small business credit supporting loan growth.
Revenue grew from Rs 10,231.81 crore in FY22 to Rs 31,538.73 crore in FY26, a 208.2% rise, and FY26 revenue was 20.6% higher than FY25. FY26 net profit rose 22.7% to Rs 5,228.88 crore. Over four years, net profit rose from Rs 2,158.89 crore in FY22 to Rs 5,228.88 crore. In Q1 FY27, revenue grew 21.8% to Rs 8,956.68 crore, and net profit rose 45.6% to Rs 1,656.22 crore.
Debt to equity is 6.93 and return on equity is 17.18%. Chola paid a dividend of Rs 2 per share for FY26, a yield of 0.13%. At a P/E of 22.95 against an industry P/E of 17.72, the stock trades above its industry multiple.
What to watch: The P/E of 22.95 is a modest premium to the industry P/E of 17.72, so the next quarters’ growth is the figure to follow.
Bajaj Finance: Consumer and Business Lending Build the Next Leg
Bajaj Finance’s roadmap rests on consumer, small business and mortgage lending, along with a large customer base and a fast-growing digital platform, with cross-selling to existing customers supporting loan growth.
Revenue grew from Rs 31,640.41 crore in FY22 to Rs 81,989.50 crore in FY26, a 159.1% rise, and FY26 revenue was 19.1% higher than FY25. FY26 net profit rose 15.2% to Rs 19,332.36 crore. Over four years, net profit rose from Rs 7,028.23 crore in FY22 to Rs 19,332.36 crore. In Q1 FY27, revenue grew 18.6% to Rs 23,166.42 crore, and net profit rose 27.6% to Rs 6,080.60 crore.
Debt to equity is 3.82 and return on equity is 16.68%. Bajaj Finance paid a dividend of Rs 6 per share for FY26, a yield of 0.63%. At a P/E of 28.77 against an industry P/E of 17.72, the stock trades above its industry multiple.
What to watch: The P/E of 28.77 sits above the industry P/E of 17.72, so earnings delivery matters for the valuation.
Northern Arc Capital: A Funding Platform for Lenders Builds the Next Leg
Northern Arc’s roadmap rests on funding for microfinance, vehicle finance and small business lenders along with direct loans, with its funding platform supporting growth.
Revenue grew from Rs 916.54 crore in FY22 to Rs 2,700.33 crore in FY26, a 194.6% rise, and FY26 revenue was 14.6% higher than FY25. FY26 net profit rose 33.9% to Rs 403.58 crore. Over four years, net profit rose from Rs 181.94 crore in FY22 to Rs 403.58 crore. In Q1 FY27, revenue grew 28.8% to Rs 782.82 crore, and net profit rose 45.8% to Rs 114.10 crore.
Debt to equity is 3.15 and return on equity is 10.42%. At a P/E of 10.35 against an industry P/E of 17.72, the stock trades below its industry multiple.
What to watch: The P/E of 10.35 against an industry P/E of 17.72 leaves valuation less stretched, so the next quarters’ growth is the figure to follow.
Best Lending and Funding Platform Stocks in India: Chola vs Bajaj Finance vs Northern Arc on Key Financials
Among the best lending and funding platform stocks in India, Chola leads on FY26 revenue growth and return on equity; Bajaj Finance leads on dividend yield; Northern Arc leads on Q1 FY27 revenue growth and Q1 FY27 net profit growth. The table puts the numbers side by side.
| Metric | Chola | Bajaj Finance | Northern Arc |
|---|---|---|---|
| FY26 revenue (Rs Cr) | 31,538.73 | 81,989.50 | 2,700.33 |
| FY26 revenue growth | 20.6% | 19.1% | 14.6% |
| FY26 net profit (Rs Cr) | 5,228.88 | 19,332.36 | 403.58 |
| FY26 net profit growth | 22.7% | 15.2% | 33.9% |
| Q1 FY27 revenue growth (YoY) | 21.8% | 18.6% | 28.8% |
| Q1 FY27 net profit growth (YoY) | 45.6% | 27.6% | 45.8% |
| Return on equity | 17.18% | 16.68% | 10.42% |
| P/E ratio | 22.95 | 28.77 | 10.35 |
| Debt to equity | 6.93 | 3.82 | 3.15 |
| Dividend yield | 0.13% | 0.63% | 0.00% |
Lender earnings follow loan growth, funding costs and credit quality, so full-year numbers and quarterly trends together give a better view.
How to Evaluate Lending and Funding Platform Stocks to Buy Before You Invest
A short checklist keeps the research consistent when you screen lending and funding platform stocks and shortlist lending and funding platform stocks to buy.
- Compare each stock’s P/E with its industry P/E, which is 17.72 for all three here.
- Check assets under management growth together with credit cost and funding cost.
- Check whether revenue growth is turning into profit growth, not only sales.
- Read loan growth against funding costs to see how growth is financed.
- Watch debt to equity and interest cover before sizing a position.
- Spread exposure across companies and business lines instead of one demand cycle.
Check the Univest Screener for live data on these lending and funding platform stocks
Risks to Consider Before Investing in Lending and Funding Platform Stocks
- Valuation: Bajaj Finance trades at 28.77 times earnings against an industry multiple of 17.72.
- Credit cycles: A slowdown in borrower repayments can raise credit costs.
- Funding costs: Higher borrowing rates can narrow lending spreads.
- Quarterly trends: A single weak quarter can change near-term earnings, so track results every quarter.
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Annual reports and quarterly result presentations are the most reliable places to verify the numbers quoted here, because they show segment details, management commentary and the notes behind each figure.
Final Take: Which Stock Has the Strongest Roadmap?
These three non-banking lender stocks cover vehicle, consumer and small business loans along with funding for other lenders. Chola leads on FY26 revenue growth and return on equity; Bajaj Finance leads on dividend yield; Northern Arc leads on Q1 FY27 revenue growth and Q1 FY27 net profit growth.
Across lending and funding platform stocks, each roadmap still has to turn growth into steady profit, so independent research and position sizing matter. Investors should consult a SEBI-registered advisor before acting on any of the lending and funding platform stocks to buy discussed here.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
FAQs on Lending and Funding Platform Stocks
Which are the best lending and funding platform stocks in India with a strong roadmap?
Ans. Cholamandalam Investment and Finance Company, Bajaj Finance and Northern Arc Capital stand out for their roadmaps in vehicle, consumer and small business loans along with funding for other lenders. FY26 revenue growth was 20.6% at Chola, 19.1% at Bajaj Finance and 14.6% at Northern Arc, and return on equity ranges from 10.42% to 17.18%.
Is Cholamandalam Investment and Finance Company a good stock to buy now?
Ans. Cholamandalam Investment and Finance Company has a debt to equity ratio of 6.93, a return on equity of 17.18% and a P/E of 22.95 against an industry P/E of 17.72. Valuation, funding costs and credit quality move results. This article is not investment advice, so consult a SEBI-registered advisor before deciding.
What is the P/E ratio of Chola, Bajaj Finance and Northern Arc?
Ans. The P/E ratio is 22.95 for Chola (industry 17.72), 28.77 for Bajaj Finance (industry 17.72) and 10.35 for Northern Arc (industry 17.72). Only Chola and Bajaj Finance trade at or above the industry multiple.
Which of these lending and funding platform stocks has the highest return on equity?
Ans. Cholamandalam Investment and Finance Company has the highest return on equity at 17.18%, followed by Bajaj Finance at 16.68% and Northern Arc Capital at 10.42%.
What are the risks of investing in lending and funding platform stocks?
Ans. The main risks are valuation, credit cycles, funding costs and quarterly trends. Bajaj Finance trades at 28.77 times earnings against an industry multiple of 17.72.
How did Chola, Bajaj Finance and Northern Arc perform in Q1 FY27?
Ans. Cholamandalam Investment and Finance Company reported revenue of Rs 8,956.68 crore, up 21.8% year on year, and net profit rose 45.6% to Rs 1,656.22 crore. Bajaj Finance reported revenue of Rs 23,166.42 crore, up 18.6% year on year, and net profit rose 27.6% to Rs 6,080.60 crore. Northern Arc Capital reported revenue of Rs 782.82 crore, up 28.8% year on year, and net profit rose 45.8% to Rs 114.10 crore.
Do lending and funding platform stocks pay dividends?
Ans. Chola and Bajaj Finance pay dividends. The dividend yield is 0.13% for Chola and 0.63% for Bajaj Finance, based on dividends declared for FY26.
How can I invest in lending and funding platform stocks in India?
Ans. You can buy lending and funding platform stocks through a demat and trading account on NSE or BSE after checking each company’s financials, margins and valuation. The Univest Screener lets you compare fundamentals before placing an order. Investments in securities are subject to market risk, so consider your risk profile first.