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Aditya Birla Capital Limited — Q3 FY26
Aditya Birla Capital delivered a strong Q3 FY26 with consolidated PAT up 41% YoY to INR 983 crore and revenue growth of 30% YoY to INR 14,181 crore.
bullish
high
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Aditya Birla Capital delivered a strong Q3 FY26 with consolidated PAT up 41% YoY to INR 983 crore and revenue growth of 30% YoY to INR 14,181 crore. The NBFC arm posted 24% AUM growth with credit costs at 1.23%, while housing finance AUM surged 58% YoY to INR 42,204 crore with ROA improving to 1.96%. A landmark capital infusion of INR 2,750 crore from Advent International in ABHFL at a post-money valuation of INR 19,250 crore underscores confidence in the housing franchise. Life insurance VNB margins expanded 380 bps to 14.2%, and health insurance grew GWP 39% YoY. Management guided NBFC loan book growth of 24-25% and expects NBFC ROA to reach 2.5% in 4-5 quarters. Key risk: recalibration of unsecured lending may delay yield improvement, with margin expansion dependent on portfolio mix shift.
आदित्य बिड़ला कैपिटल ने वित्त वर्ष 2026 की तीसरी तिमाही में शानदार प्रदर्शन किया। कंपनी का कुल मुनाफा पिछले साल की तुलना में 41% बढ़कर 983 करोड़ रुपये हो गया। कमाई भी 30% बढ़कर 14,181 करोड़ रुपये रही। गैर-बैंकिंग वित्त कंपनी (NBFC) की संपत्ति में 24% वृद्धि हुई, जबकि बुरे कर्ज का स्तर 1.23% रहा। हाउसिंग फाइनेंस का आकार 58% बढ़कर 42,204 करोड़ रुपये हो गया। एडवेंट इंटरनेशनल ने 2,750 करोड़ रुपये का निवेश किया, जो इस कारोबार में भरोसा दिखाता है। जीवन बीमा का मुनाफा बढ़ा और स्वास्थ्य बीमा का प्रीमियम 39% बढ़ा। कंपनी को अगले 4-5 तिमाहियों में NBFC का मुनाफा 2.5% तक पहुंचने की उम्मीद है। लेकिन बिना गारंटी के कर्ज में कमी से ब्याज दरों में सुधार में देरी हो सकती है।
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Yield improvement may be delayed
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NBFC AUM
INR 148,182 crore
+24% YoY
NBFC portfolio grew 24% YoY, driven by secured and unsecured business loans.
HFC AUM
INR 42,204 crore
+58% YoY
Housing finance AUM crossed INR 40,000 crore, with 48% CAGR over 3 years.
Life Insurance VNB Margin
14.2%
+380 bps YoY
VNB margin expanded 380 bps YoY due to favorable product mix shift to traditional.
HFC Gross Stage 3
0.54%
-82 bps YoY
Asset quality improved with GS3 at 0.54% and net stage 3 at 0.23%.
What Changed vs Last Quarter
NEW
NBFC loan book growth of 24-25%
Management expects to double the NBFC loan book in three years, implying ~25% CAGR.
NEW
NBFC ROA expansion to ~2.5%
NBFC ROA (ex-labor code impact at 2.28%) is expected to expand to ~2.5% in the next 4-5 quarters.
NEW
Life insurance individual FYP CAGR of 20%+
Life insurance business targets individual first year premium CAGR of 20%+ over the next three years.
NEW
Double life insurance VNB in three years
Management aims to double absolute net VNB in three years while expanding VNB margins above 18%.
DROPPED
NBFC credit cost to remain at 1.2%-1.3% in FY26
Management expects credit cost to stay in the 1.2%-1.3% range for the full year, supported by improving asset quality.
DROPPED
HFC ROA target of 2%-2.2% in 6-8 quarters
Housing finance business aims to achieve ROA of 2%-2.2% over the next six to eight quarters, driven by operating leverage.
DROPPED
Life insurance net VNB margin above 18% in FY26
Despite GST exemption impact, management maintains guidance of net VNB margin exceeding 18% for FY26.
DROPPED
Health insurance combined ratio improvement in FY26
Health insurance business expects to improve combined ratio from 105% in previous year to below 105% in FY26.
NEW RISK
Yield improvement may be delayed
Despite favorable mix shift, yields have remained flat; management expects it to take a couple more quarters for improvement.
NEW RISK
Unsecured portfolio recalibration
Management is cutting high-risk segments in unsecured loans, which could temper growth and delay margin expansion.
NEW RISK
ECL model assumptions not disclosed
Management declined to provide ECL breakdown or PD/LGD assumptions, leaving uncertainty about provision adequacy.
RISK GONE
Competitive intensity in housing finance
Increasing competition in the housing finance segment could compress net interest margins, though management expects operating leverage to offset.
RISK GONE
Regulatory changes in mutual fund TER structure
Proposed SEBI changes to total expense ratio (TER) calculation could impact AMC profitability, though management is engaging with regulators.
RISK GONE
NBFC ROA stuck at 2.2% despite margin improvement
Despite margin expansion and lower credit costs, NBFC ROA remained at 2.2%, raising questions about achieving medium-term target of 2.5%.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q1 FY26, Q2 FY25, Q2 FY26, Q3 FY25
Management expects credit cost to stay in the 1.2%-1.3% range for the full year, supported by improving asset quality.
Mentioned in Q1 FY26, Q2 FY26, Q3 FY25, Q4 FY25
Housing finance business aims to achieve ROA of 2%-2.2% over the next six to eight quarters, driven by operating leverage.
Mentioned in Q1 FY25, Q1 FY26, Q2 FY25, Q3 FY25
Life insurance business maintains guidance to expand net VNB margins to 18%+ for the current fiscal year.
Mentioned in Q1 FY25, Q2 FY26, Q4 FY25
Health insurance business expects to improve combined ratio from 105% in previous year to below 105% in FY26.
Mentioned in Q1 FY26, Q2 FY25, Q3 FY25
Net interest margin including fees declined to 5.97%, and management expects improvement only as higher-yielding unsecured portfolio grows.
Fast read
Guidance and risk preview
Management expects to double the NBFC loan book in three years, implying ~25% CAGR.
Despite favorable mix shift, yields have remained flat; management expects it to take a couple more quarters for improvement.
View Risks →