Aditya Birla Capital (ABCAPITAL) Q1 24/25 earnings summary

Executive summary

• Consolidated profit after tax (excluding one-off items) grew 15% year-on-year to INR 745 crore in Q1 FY25, with consolidated revenue up 26% year-on-year to INR 10,258 crore.

• Total lending portfolio grew 27% year-on-year to INR 1,27,705 crore; total AUM rose 20% year-on-year to INR 4,62,891 crore.

• Gross premium for life and health insurance increased 30% year-on-year to INR 5,027 crore.

• Digital platforms and omnichannel architecture continue to drive customer engagement and operational efficiency.

• Profit after tax attributable to owners stood at INR 758.84 crore for Q1 FY25.

Financial highlights

• NBFC loan portfolio grew 25% year-on-year to INR 1,07,306 crore; profit after tax for NBFC up 20% year-on-year to INR 621 crore; PBT at INR 833 crore.

• Housing finance loan portfolio grew 41% year-on-year to INR 20,399 crore; highest ever quarterly disbursement at INR 3,016 crore, up 89% year-on-year.

• Mutual fund average AUM up 19% year-on-year to INR 3.5 trillion; monthly SIP flows increased 39% year-on-year to INR 1,367 crore.

• Life insurance individual first year premium grew 19% year-on-year; total premium up 28% year-on-year to INR 3,986 crore; AUM at INR 90,682 crore.

• Health insurance gross written premium up 35% year-on-year to INR 1,041 crore; retail premium up 51% year-on-year; market share at 12.5%.

Outlook and guidance

• Confident of maintaining 25%+ year-on-year growth in NBFC portfolio, with a focus on SME and direct sourcing channels.

• Life insurance net VNB margin guidance maintained at 18%-20% for FY25, despite regulatory changes and Q1 margin dip.

• Health insurance expects continued strong growth and improvement in combined ratio towards 100% by FY26.

• ROA in NBFC business expected to reach 2.7%-3% in 2-3 years, with stable margins and credit costs.

• Focus on scaling up B2B ecosystem, increasing secured loan book, and leveraging digital journeys for growth.