Aditya Birla Capital (ABCAPITAL) investor relations material

Executive summary

• Consolidated profit after tax rose 40% year-on-year to ₹1,175 crore in Q1 FY27, with revenue up 29% to ₹14,731 crore, driven by strong growth across lending, insurance, and asset management businesses, and robust asset quality maintained.

• Total lending portfolio grew 32% year-on-year to ₹2,19,289 crore, and total AUM increased 36% to ₹7,52,745 crore, with NBFC AUM up 28% and housing finance AUM up 50%.

• Strong digital adoption and AI-driven initiatives enhanced customer engagement, underwriting, and operational efficiency across all segments.

• Raised ₹4,000 crore equity growth capital via preferential allotment, with majority allocated to NBFC growth and IFC as a key investor.

• Life and health insurance businesses saw premium growth of 20% and 50% year-on-year, respectively, with significant margin expansion and improved profitability.

Financial highlights

• Consolidated revenue up 29% year-on-year to ₹14,731 crore; consolidated PAT up 40% year-on-year to ₹1,175 crore.

• NBFC profit after tax at ₹927 crore, up 35% year-on-year; net interest income up 28% year-on-year; NIM at 6.07%.

• Housing finance profit before tax at ₹300 crore, up 95% year-on-year; NII up 52% year-on-year; PAT up 96%.

• AMC profit after tax at ₹309 crore, up 12% year-on-year; mutual fund AUM up 6% year-on-year; equity AUM up 10%.

• Life insurance VNB margin nearly doubled to 15.1%; health insurance returned to profit with combined ratio at 106%.

Outlook and guidance

• Targeting NBFC and housing finance AUM of ₹1 lakh crore+ in 8-10 quarters, with ROE for housing finance expected to reach 15% in 6-8 quarters.

• Life insurance aims for individual FYP CAGR of 20%+ and VNB margin above 20% over three years.

• Continued focus on digital expansion, branch network growth, and deeper penetration in tier 2, 3, and 4 towns.

• Health insurance to scale proprietary business and leverage data-driven customer engagement.