Aditya Birla Capital (ABCAPITAL) Q2 25/26 earnings summary

Executive summary

• Consolidated revenue for Q2 FY26 reached ₹12,481 crore, up 4% year-over-year, with profit after tax at ₹855 crore, a 3% increase year-over-year (excluding one-off items in Q2 FY25).

• Lending portfolio grew 29% year-over-year to ₹1,77,855 crore, with strong asset quality and robust growth across NBFC, housing finance, asset management, and insurance segments.

• Strategic focus on digital, data, and omnichannel distribution, with continued investments in technology and branch expansion, including the launch of digital platforms ABCD and Udyog Plus.

• Life insurance individual first-year premium increased 19% year-over-year; health insurance gross written premium rose 31% year-over-year in H1 FY26.

• Asset management average AUM grew 11% year-over-year to over ₹4,25,171 crore.

Financial highlights

• NBFC disbursements hit a record ₹21,990 crore, up 39% sequentially; NBFC AUM grew 22% year-over-year to ₹1,39,585 crore.

• Housing finance disbursements up 44% year-over-year to ₹5,786 crore; AUM up 65% year-over-year to ₹38,270 crore.

• Asset management QAAUM at ₹4,25,171 crore, up 11% year-over-year; operating profit up 13% year-over-year.

• Life insurance individual FYP at ₹1,880 crore, up 19% year-over-year; net VNB margin up 420 bps year-over-year to 11.6%.

• Health insurance gross written premium at ₹2,839 crore, up 31% year-over-year; market share increased to 13.6%.

Outlook and guidance

• Expect credit cost to remain in the 1.2%-1.3% range for FY26.

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

• Life insurance business aims for net VNB margin above 18% in FY26 and 20%-25% CAGR in individual FYP over the next three years.

• NBFC segment expects margin and ROA improvement in coming quarters as product mix shifts toward higher-yielding segments.

• Branch network expanded by 22 new branches, now totaling 1,712, targeting deeper penetration into tier 3 and 4 towns.