Aditya Birla Capital (ABCAPITAL) Q1 25/26 earnings summary

Executive summary

• Consolidated revenue rose 10% year-over-year to INR 11,343 crore (₹11,333 crore) in Q1 FY26, with profit after tax up 10% to INR 835 crore.

• Lending portfolio grew 30% year-over-year to ₹1,65,832 crore; total AUM across AMC, life, and health insurance increased 20% year-over-year to ₹5,53,504 crore.

• Strong digital adoption and omnichannel platforms, including ABCD and Udyog Plus, enhanced customer experience and drove 6.4 million customer acquisitions.

• Branch network expanded by 67 to 1,690, targeting deeper penetration in tier 3/4 towns and new customer segments.

• Focus remains on quality, profitable growth, leveraging digital, data, and omnichannel distribution, with prudent risk management.

Financial highlights

• NBFC disbursements increased 18% year-over-year to INR 15,851 crore; NBFC AUM grew 22% to ₹1,31,227 crore; NBFC profit after tax up 11% to ₹689 crore; ROA at 2.25%.

• HFC disbursements surged 76% year-over-year to ₹5,404 crore; HFC AUM up 70% to ₹34,605 crore; profit before tax up 82% to ₹154 crore.

• Asset management AUM crossed ₹4 trillion, up 14% year-over-year; PAT up 18% to ₹277 crore; operating profit up 21%.

• Life insurance individual FYP grew 23% year-over-year; AUM crossed ₹1 lakh crore; VNB margin at 7.5%.

• Health insurance GWP up 30% year-over-year to ₹1,357 crore; market share among SAHI players at 14.5%; combined ratio improved to 111%.

Outlook and guidance

• Credit cost expected to remain at 1.3% for FY 2026.

• HFC business targets ROA of 2%-2.2% over the next three to eight quarters.

• Life insurance aims for 20%-25% CAGR in individual FYP over three years and VNB margin above 18%.

• AMC to scale retail franchise, SIP flows, and alternative assets, leveraging digital and distribution expansion.

• Health insurance targets 100% combined operating ratio (COR) as per old accounting regulations in the current year.