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 improved operating leverage.

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

• Strategic focus on digital, data, and omnichannel distribution, with continued investments in technology and branch expansion.

Financial highlights

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

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

• Asset management AUM grew 11% year-over-year to over ₹4,25,171 crore; equity AUM up 7% year-over-year.

• Life insurance individual first-year premium up 19% year-over-year in H1 FY26; market share increased by 50 bps to 4.9%.

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

Outlook and guidance

• Expect continued strong growth in H2 FY26, supported by structural reforms, stable inflation, and rising capacity utilization.

• NBFC credit cost guidance maintained at 1.2%-1.3% for FY26; ROA target for HFC business at 2%-2.2% over next 6-8 quarters.

• Life insurance net VNB margin guidance of 18%+ for FY26; health insurance combined ratio expected to improve from 105%.

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