Aditya Birla Capital Limited

Aditya Birla Capital reported a strong Q4 FY26, with consolidated profit after tax (excluding one-off^📎 items) increasing by 30% year-on-year to ₹1,124 crores. For the full year FY26, consolidated PAT grew by 21% year-on-year, while total consolidated revenue grew by 12% in Q4 FY26 and 14% for the full year. The company successfully concluded an equity fund raise of ₹2,750 crores in Aditya Birla Housing Finance from Advent International, reinforcing its capital base for future growth. Management emphasized a continued focus on quality and profitable growth, leveraging data, digital, and technology as core enablers.

The NBFC business demonstrated robust performance, with AUM reaching ₹1,59,916 crores, reflecting an 8% quarter-on-quarter and 27% year-on-year growth. Profit after tax for Q4 FY26 increased by 27% year-on-year to ₹825 crores, and RoA improved to 2.31%. Disbursements grew by 28% year-on-year to ₹24,950 crores in Q4 FY26, driven by strong traction in retail and MSME segments. Asset quality remained strong, with GS2 and GS3 declining by 38 bps sequentially to 2.42%, and credit costs at a lowest-ever 1.04% in Q4, supported by a 72% secured loan book.

Aditya Birla Housing Finance (ABHFL) achieved significant milestones, with AUM growing by 53% year-on-year to ₹47,452 crores and disbursements increasing by 37% year-on-year to ₹7,980 crores in Q4 FY26. The profit after tax doubled year-on-year to ₹200 crores in Q4 FY26, and RoA improved to 2.07%. For the full year, PBT grew 98% to ₹832 crores and ROE stood at 14.27%. The company plans to open over 100 branches in FY27 to support its target of achieving ₹1 lac crore AUM in the next 24 to 30 months, with an RoA target of 2.1-2.2% for FY27.

The AMC business reported a 14% year-on-year growth in quarterly average mutual fund AUM, reaching ₹4.35 trillion. Overall Average AUM, including alternate assets, stood at ₹4.74 lakh crores, up 17% year-on-year. SIP contribution for March 2026 improved to ₹1,204 crores, growing 11% quarter-on-quarter. The PMS/AIF assets grew significantly by 3x year-on-year to ₹32,570 crores in Q4 FY26, largely driven by the ESIC mandate of ₹28,400 crores. Revenue from Operations for Q4 FY26 was ₹458 crores, with PAT at ₹187 crores.

The life insurance business saw its individual first year premium grow by 15% year-on-year in FY26, outpacing the private industry growth of 12%. The Value of New Business (VNB) margin expanded by 260 bps year-on-year to 20.6% in FY26. Total premium for FY26 stood at ₹24,779 crores, up 20% from last year, with 13th month persistency at a healthy 86.1%. The company aims for a 20%+ CAGR in individual FYP for the next three years, while maintaining VNB margins in the 18-20% range and doubling Net VNB in three years.

The health insurance business achieved a strong 39% year-on-year growth in gross written premium in FY26, with market share in SAHI increasing from 12.6% to 13.7%. The combined ratio improved to 103% in FY26. Net profit for FY26, under new accounting regulations, was ₹39 crores. The company is focused on its 'Health First' model, which has led to 8%+ lower loss ratios and 11%+ better persistency for customers engaging with health-based incentives. The target is to achieve a 100% combined ratio.

Aditya Birla Capital is extensively integrating AI and digital technologies across its operations to drive efficiency and enhance customer experience. In NBFC, AI-driven tools process ~65% of contact-centre calls and ~71% of service emails straight-through. In HFC, digital transformation has led to 4x processing scale-up and 96% productivity improvement. The life insurance business uses 'Saras.AI' for policy issuance, underwriting, and servicing, while health insurance leverages AI for claims auto-adjudication (over 25% straight-through) and 35-40% productivity improvement in underwriting.