Aditya Birla Cap

Aditya Birla Capital reported a strong Q4 FY25, with consolidated profit after tax (excluding one-off^📎 items) growing 24% sequentially and 6% year-on-year to ₹865 crore. Total consolidated revenue for the quarter increased by 29% sequentially and 13% year-on-year, reaching ₹14,138 crore. For the full fiscal year FY25, consolidated PAT (excluding one-off^📎 items) grew 8% year-on-year to ₹3,142 crore, and consolidated revenue rose 20% to ₹47,369 crore. This performance reflects a focus on quality and profitable growth across businesses.

The NBFC business saw disbursements increase by 28% sequentially to ₹19,523 crore in Q4 FY25. The overall NBFC portfolio grew 20% year-on-year and 6% sequentially, reaching approximately ₹1.26 trillion. Asset quality remained robust, with credit cost improving by 22 bps year-on-year and 15 bps sequentially to 1.21% in Q4 FY25. Gross Stage 2 and 3 loans declined by 71 bps year-on-year and 47 bps sequentially to 3.78% as of March-end, with a Gross Stage 3 PCR of 45%. The profit after tax for the NBFC segment grew 11% year-on-year and 9% sequentially to ₹652 crore, with RoA improving to 2.25% in Q4 FY25.

The Housing Finance Company (HFC) business demonstrated strong growth momentum, with AUM growing 69% year-on-year to over ₹31,000 crore as of March 31, 2025. Q4 FY25 disbursements were the highest ever at ₹5,820 crore, marking a 98% year-on-year and 23% quarter-on-quarter increase. Credit quality remained strong, with Stage 3 loans declining by 33 bps sequentially to 0.66%. The HFC achieved a RoA of 1.46% and RoE of 11.03% for FY25, with PBT growing 11% year-on-year to ₹419 crore. The company aims to achieve an RoA of 2.0%-2.2% in the next eight to ten quarters, driven by operating leverage.

The Asset Management business reported a 15% year-on-year growth in average AUM, reaching approximately ₹3.81 trillion in Q4 FY25, with equity AUM comprising about 44%. Alternate AUM grew significantly by 70% year-on-year to ₹23,900 crore. The company's market share improved by 6 bps sequentially to 5.66%. Monthly SIP flows in March grew 5% year-on-year to ₹1,316 crore. For FY25, the profit after tax grew 19% year-on-year to ₹931 crore, with operating revenue up 25% to ₹1,685 crore.

The Life Insurance business continued its strong growth, achieving the fastest individual first-year premium growth in the industry at 34% year-on-year for FY25. The net VNB margin for FY25 stood at 18%, with absolute VNB growing 17% year-on-year to ₹818 crore. The embedded value increased by 20% to ₹13,812 crore, yielding a return on embedded value of 19.2% in FY25. Total premium for the year reached ₹20,639 crore, a 20% year-on-year growth. The company aims to grow individual FYP by a CAGR of 20%-25% and expand VNB margin to over 18% in the next three years.

The Health Insurance business achieved breakeven for the first time in FY25, reporting a profit of ₹6 crore under new accounting regulations (₹75 crore under old accounting). Gross Written Premium (GWP) grew 33% year-on-year (42% excluding multi-year guidelines) to ₹4,940 crore (new accounting) or ₹5,252 crore (old accounting). Market share among standalone health insurers increased by 140 bps year-on-year to 12.6%. The combined ratio improved to 105% (new accounting) or 102% (old accounting) from 110% in FY24. The company aims to achieve a combined ratio of 100% at the earliest.

Aditya Birla Capital continues to strengthen its omnichannel distribution network and digital platforms. The D2C platform, ABCD App, launched a year ago, has seen robust response with 5.5 million customer acquisitions and contributed about 5% of personal loans disbursements in March. The B2B platform, Udyog Plus, has scaled to 2.3 million registrations and contributes about 21% of unsecured business loan disbursements. The company's 1,623 branches, with 60% co-located, further enhance reach into tier 3 and 4 towns. Management expects to share more detailed business data for the ABCD app in subsequent quarters.

The successful amalgamation of Aditya Birla Finance with Aditya Birla Capital, effective April 1, 2025, marks a significant step in the company's transformative journey. This merger has created a unified operating entity with better access to capital and is expected to drive operational synergies. The amalgamation also resulted in the release of ₹3,000-3,500 crore of capital, providing significant headroom for future growth. The standalone entity maintains a strong capital position with a Tier 1 CRAR of 15.93% and total CRAR of 18.22%.