Aditya Birla Capital (ABCAPITAL) Q3 24/25 earnings summary

Executive summary

• Consolidated revenue for Q3 FY25 grew 10% year-over-year to ₹10,949 crore, with consolidated PAT at ₹708 crore, slightly down from ₹736 crore in Q3 FY24.

• Total lending portfolio rose 27% year-over-year and 6% sequentially to ₹1,46,151 crore; total AUM increased 23% year-over-year to ₹5,03,377 crore.

• Gross premium for 9M FY25 reached ₹16,942 crore, up 25% year-over-year.

• Digital platforms ABCD (D2C), Udyog Plus (B2B), and Stellar (B2D) scaled up, with 4.1 million customers acquired and ₹3,300 crore AUM.

• Strategic initiatives included the proposed amalgamation of Aditya Birla Finance with Aditya Birla Capital, approved by shareholders and RBI, pending NCLT sanction and expected by March 2025.

Financial highlights

• NBFC AUM reached ₹1,19,437 crore, up 21% year-over-year; profit before tax for NBFC was ₹805 crore, up 5% year-over-year; ROE at 13.87%.

• HFC AUM at ₹26,714 crore, up 62% year-over-year; PBT at ₹110 crore, up 10% year-over-year; ROE at 10.66%.

• Mutual fund QAAUM grew 23% year-over-year to ₹3,83,911 crore; equity QAAUM up 32% to ₹1,79,481 crore; operating profit up 42% year-over-year.

• Life insurance individual first-year premium grew 31% year-over-year; total premium up 23% year-over-year; VNB margin at 10.8% for 9M FY25.

• Health insurance GWP at ₹3,337 crore, up 39% year-over-year; market share among SAHI up 138 bps to 12.0%; combined ratio improved to 114%.

Outlook and guidance

• Targeting 25% AUM CAGR and sustainable ROA in the medium term, with focus on scaling B2B ecosystem, secured loan book, and digital sourcing.

• Housing finance aims for 25% portfolio CAGR over next 2-3 years, leveraging digital and ecosystem synergies.

• Life insurance targets 20%+ CAGR in individual FYP over next three years, maintaining VNB margin at 17-18%.

• Margins in NBFC expected to stabilize at current levels before improving; credit cost guidance remains below 1.5%.

• Continued expansion into tier 3 and 4 towns and new customer segments, leveraging digital platforms for growth.