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    Aditya Birla Capital Q1 FY27 earnings call

    ABCAPITAL
    Financial Services·31 Jul 2026
    Management Summary

    Aditya Birla Capital Limited delivered a strong Q1 FY27, with consolidated PAT growing 40% YoY to ₹1,175 crores and revenue up 29% YoY to ₹14,731 crores. This performance was driven by robust growth across NBFC, HFC, and insurance segments, coupled with improved profitability and asset quality. The company also successfully raised ₹4,000 crores in equity capital to fuel future growth, particularly in its NBFC business, and announced its strategic foray into the Gold Loans segment.

    Highlights

    6

    • Consolidated Profit After Tax increased 40% year-on-year to ₹1,175 crores.

    • Consolidated total revenue grew 29% year-on-year to ₹14,731 crores.

    • NBFC profit after tax increased 35% year-on-year and RoA expanded 14 bps year-on-year to 2.39%.

    • Housing Finance portfolio grew 50% year-on-year and crossed the ₹50,000-crore milestone.

    • Life insurance VNB margin doubled year-on-year to 15.1% in Q1 FY27.

    • Health insurance reported a profit of ₹18 crores during Q1 FY27 compared to losses in the prior year.

    Concerns

    1

    • Higher input and energy costs make future growth very uncertain, as noted by management.

    Key financials

    Single quarter

    02 metrics
    1. 01Consolidated PAT₹1,175 Cr+40%YoY
    2. 02Consolidated Revenue₹14,731 Cr+29.0%YoY

    Segment breakdown

    NBFC
    ₹1.7L Cr AUM₹927 Cr PAT2.4% RoA2.4% GS2+GS3103% Credit Cost₹2,377 Cr Net Interest Income6.1% NIM (incl. fee)1.9% Opex to AUM ratio
    Housing Finance (HFC)
    ₹51,833 Cr AUM₹300 Cr PBT2.1% RoA11.3% RoE41% Stage 378% Stage 2+3₹572 Cr Net Interest Income
    Asset Management Company (AMC)
    ₹6.3L Cr Overall Average AUM₹4.3L Cr Mutual Fund Quarterly Average AUM₹2.0L Cr Equity Mutual Fund Quarterly Average AUM₹2.0L Cr PMS and AIF AUM₹700 Cr Real Estate Business AUM₹40,000 Cr Passive Quarterly Average AUM₹625 Cr Total Revenue₹406 Cr PBT₹309 Cr PAT
    Life Insurance
    20% Individual First Year Premium Growth15.1% VNB Margin₹4,743 Cr Total Premium₹1.2L Cr Total AUM82.8% 13th Month Persistency19% Renewal Premium Growth201% Solvency
    Health Insurance
    ₹2,196 Cr Gross Premium on Sales16.2% Market Share (SAHI)₹18 Cr Profit106% Combined Ratio
    List

    Capital allocation

    2
    high confidence
    CategoryHeadline
    M&A

    Aditya Birla Capital Limited

    Other · closed · Consideration ₹NaN (mixed)

    Liquidity

    Liquidity disclosed

    The recent equity raise of ₹4,000 crores strengthens the capital base to support future growth across businesses.

    Guidance & targets

    8
    CategoryTargetPriority
    AUM
    HFC AUM
    ₹1 lakh crore plus
    		High
    Profitability
    HFC RoE
    15%
    		High
    Profitability
    HFC RoE
    13%
    		High
    Profitability
    Life Insurance Net VNB
    double
    		High
    Growth
    Life Insurance Individual FYP CAGR
    20%+
    		High
    Margin
    Life Insurance VNB margins
    above 20%
    		High
    Branch Expansion
    NBFC Gold Loan branches
    nearly 200
    		High
    Branch Expansion
    NBFC Gold Loan branches
    close to 1,000
    		High

    What to watch in Q2 FY27

    5

    HFC ROE trajectory

    Q4 FY27
    Current11.29%
    TargetCloser to 13% by Q4 FY27

    Why it matters

    Tracking HFC's ROE recovery is crucial as it's a key profitability metric directly linked to capital efficiency and growth targets post capital raise.

    the ROE will be close to 13% as we as we exit the year, maybe be Q4 of this year, And then it will inch up towards the 15% mark between 6 to 8 quarters from now.

    Risks & concerns

    2
    RiskSeverity

    Higher input and energy costs

    Higher input and energy costs make the growth very uncertain in the future. — Management acknowledged

    medium

    Regulatory changes on credit life products

    Potential regulatory changes on credit life products could impact fee income, but management believes it would be an industry-level issue and they would seek to mitigate. — Analyst acknowledged

    low

    Q&A highlights

    8

    “If you look at our yields have been stable quarter-on-quarter, fee income was slightly lower by 6 basis points and cost of funds was better by 5 basis points. So that's how the margin NIM is at 6.07% compared to 6.08% last year.”

    Clarifies the slight quarter-on-quarter dip in NIM, attributing it to fee income rather than core yield compression, and confirms overall stability.

    asked by Raghav Garg

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Consolidated Performance and Strategic Capital Infusion

    Aditya Birla Capital Limited reported a robust Q1 FY27, with consolidated Profit After Tax increasing 40% year-on-year to ₹1,175 crores and total revenue growing 29% year-on-year to ₹14,731 crores. This strong performance was bolstered by a significant equity growth capital raise of ₹4,000 crores via preferential allotment. Of this, ₹3,080 crores came from the Promoter Group and ₹920 crores from IFC, with 87.5% earmarked for the NBFC business and the remainder for general corporate purposes, including investments in subsidiaries.

    02

    NBFC Business Drives Profitability and Asset Quality

    The NBFC segment demonstrated strong growth, with AUM reaching ₹1,67,456 Crore, up 28% year-on-year, and PAT growing 35% year-on-year to ₹927 crores. The Return on Assets (RoA) expanded by 14 basis points year-on-year to 2.39%. Asset quality remained robust, with GS2+GS3 improving by 127 basis points year-on-year to 2.4% and credit cost reducing by 27 basis points year-on-year to 1.03%, reflecting disciplined risk management and a focus on granular, diversified growth in retail and SME segments.

    03

    Housing Finance Achieves Milestone and Targets Aggressive Growth

    The Housing Finance business achieved a significant milestone, with its AUM surpassing ₹50,000 crore, growing 50% year-on-year to ₹51,833 crore. Profit Before Tax nearly doubled year-on-year to ₹300 crores, with a healthy RoA of 2.12% and RoE of 11.29%. The company aims to build a ₹1 lakh crore plus AUM franchise within the next 8-10 quarters, while targeting a 15% RoE, supported by continued branch expansion and digital initiatives.

    04

    Life and Health Insurance Businesses Show Strong Growth and Margin Expansion

    The Life Insurance business reported a 20% year-on-year growth in individual first-year premium, with its Value of New Business (VNB) margin doubling year-on-year to 15.1% in Q1 FY27, driven by an increased share of non-par, protection, and annuity products. The Health Insurance business recorded a 50% year-on-year growth in gross premium on sales to ₹2,196 crores, achieving a profit of ₹18 crores compared to losses in the prior year, and improving its market share to 16.2% among SAHI insurers.

    05

    AMC Business Crosses Key AUM Milestones

    The Asset Management Company (AMC) reported a 42% year-on-year growth in overall average AUM, reaching ₹6.28 lakh crores, including significant mandates from ESIC and EPFO, which pushed the closing total AUM to over ₹10 lakh crores. Mutual Fund Quarterly Average AUM grew 6% year-on-year to ₹4.28 lakh crores, with Equity Mutual Fund AUM growing 10% year-on-year to ₹1.99 lakh crores. The passive business also saw strong momentum, with ETF AUM growing 47% year-on-year.

    06

    Strategic Foray into Gold Loans and Digital Transformation

    ABCL announced its strategic entry into the Gold Loans business, with plans to scale to nearly 200 stand-alone branches by March 2027 and potentially 1,000 branches over the next three years, aiming to diversify its retail lending portfolio. Across all businesses, the company continues to leverage AI, data, and technology to enhance customer experience, improve operational efficiency, and strengthen underwriting and compliance, with initiatives like Saras.AI in life insurance and Fintellect in HFC.

    This is an AI-generated summary of a publicly available earnings call transcript.