Aditya Birla Capital (ABCAPITAL) Q2 24/25 earnings summary

Executive summary

• Consolidated PAT reached ₹1,001 crore, up 42% year-over-year and 32% sequentially, with consolidated revenue at ₹12,007 crore, up 36% year-over-year; robust growth across NBFC, housing finance, asset management, and insurance segments.

• Total lending portfolio grew 27% year-over-year to ₹1,37,946 crore; AUM rose 24% to ₹5,01,152 crore.

• Strategic focus on digital, data, and technology, with strong omnichannel distribution and customer-centric solutions driving operational efficiency.

• Amalgamation of Aditya Birla Finance with Aditya Birla Capital is underway, with regulatory and shareholder approvals progressing.

• Sale of insurance broking subsidiary completed, resulting in a one-time gain of ₹202.9 crore.

Financial highlights

• NBFC AUM at ₹1,14,710 crore, up 23% year-over-year; PBT at ₹844 crore, up 15% year-over-year; NIM at 6.28%.

• Housing finance AUM at ₹23,236 crore, up 51% year-over-year; PBT at ₹104 crore, up 7% year-over-year; highest-ever quarterly disbursement of ₹4,010 crore.

• Asset management QAAUM at ₹3,83,309 crore, up 28% year-over-year; PAT at ₹242 crore, up 36% year-over-year.

• Life insurance gross premium at ₹8,657 crore for H1 FY25, up 27% year-over-year; VNB margin at 7.4%.

• Health insurance gross written premium at ₹2,171 crore for H1 FY25, up 39% year-over-year; market share among SAHIS increased to 11.9%.

Outlook and guidance

• NBFC portfolio expected to grow at a CAGR of 25% over the next 2-3 years, with focus on MSME, digital sourcing, and cross-sell.

• Housing finance aims for 25% portfolio CAGR over next 2-3 years and to double the book in 18-24 months.

• Life insurance targets individual FYP growth at 20%+ CAGR and VNB margin at 17-18%.

• Credit cost guidance for NBFC remains at 1.5%, with current levels at 1.25%.