Aditya Birla Capital Limited — Q4 FY25
Aditya Birla Capital reported a solid Q4 FY25 with consolidated PAT of INR 865 crore (+6% YoY) and revenue of INR 14,138 crore (+13% YoY).
bullish
high
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Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
82%Questions answered0Evaded / deflected11Questions audited
Answered
High priority
Why are NBFC margins still weak despite growth in SME segment?
Asked by Avinash Singh, Emkay Global Financial Services
Management provided specific yield and margin numbers and explained the product mix shift.
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Question
The first one is on NBFC margins. So I mean, the P increment has seen a strong increase, but on the core, if we see the net interest income on the margins, are they still kind of weaker?
Rakesh Singh, Executive Director and CEO
If you look at our yields for quarter three and quarter four, it is quite stable at 12.9, and the margins are expanding from 6 to 6.07. This is on account of the change in the product mix.
Partial answer
High priority
Why is NPA high in government-guaranteed business loans?
Asked by Avinash Singh, Emkay Global Financial Services
Explained why NPA looks elevated but did not address the underlying credit quality driver.
no specific driver givenattributed to accounting treatment
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Question
What is sort of driving this kind of a high NPA ratio in this on the book that is guaranteed by government?
Rakesh Singh, Executive Director and CEO
The reason why it looks elevated is because it does not get written off at 180 days, and that's the reason it keeps looking elevated. That's because this is backed by a guarantee from the non-first deed.
Partial answer
High priority
How will loan growth appear in FY26 given moderating self-originated growth?
Asked by Avinash Singh, Emkay Global Financial Services
Reiterated three-year doubling target but did not give FY26 growth rate.
no FY26 specific numberrepeated long-term guidance
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Question
Yet, I mean, what I would say is that, okay, self-originated growth has been kind of moderating. Again, looking forward, how will this growth appear in FY 2026?
Rakesh Singh, Executive Director and CEO
As we have guided that in the next three years, we are looking at doubling our loan book. Clearly, that's the kind of momentum which we are looking at going forward as well.
Partial answer
High priority
What explains the rise in stage 3 in unsecured business from 4.1% to 4.7%?
Asked by Chintan Shah, ICICI Securities
Explained why it looks elevated but not why it increased from 4.1% to 4.7%.
attributed to accounting treatmentno root cause for increase
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Question
Sir, firstly, on the NBFC, there is some fixed fee books rising in the unsecured business stage three. What would explain this from 4.1% to 4.7%?
Rakesh Singh, Executive Director and CEO
This looks elevated because it does not get written off at 180 days the way we do our other unsecured segment because this is guaranteed by the government and the [Synthetics]. That's the reason why it looks elevated.
Answered
Medium priority
What are the yields and ticket sizes in the developer book?
Asked by Chintan Shah, ICICI Securities
Provided specific yield range and ticket size details.
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Question
The developer book in the HFC business, that has more than doubled on a YOY basis. What are the typical yields here and the average ticket size?
Mayank Bathwal, CEO, Aditya Birla Health Insurance Company
Developer book, the yields are anywhere between 13%-13.25%. That is the yield that is there for the developers.
Answered
Medium priority
What is the minimum capital adequacy threshold for HFC and capital infusion plans?
Asked by Chintan Shah, ICICI Securities
Provided regulatory requirement, current ratio, and planned capital infusion.
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Question
Firstly on there. The developer book in the HFC business... What is the minimum threshold there, or will we be increasing further capital?
Mayank Bathwal, CEO, Aditya Birla Health Insurance Company
Total CRAR requirement is 15%. On that, we are at 16.54%. During the year, we will increase INR 200 crore.
Answered
High priority
What are the key drivers for ROA improvement to 200-220 bps?
Asked by Chintan Shah, ICICI Securities
Provided specific drivers and quantified expected improvement.
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Question
On this ROA front, we had mentioned that ROA would increase up to 200-220 for the next 8-10 quarters from 146 currently. What would be the key drivers?
Mayank Bathwal, CEO, Aditya Birla Health Insurance Company
The improvement in ROA will essentially come with operating leverage. What is OpEx to average loan book, which is 2.94? The endeavor in the next 8-10 quarters is to reduce that by between 120-130 basis points.
Answered
High priority
How will declining rates and product mix impact NBFC margins?
Asked by Abhijit Tibrewal, Motilal Oswal
Explained asset-liability mix and how product mix will drive margin expansion.
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Question
Just trying to understand over the next maybe one to two years in a declining rate environment, why one tailwind will be improving proportion of PNC in the loan mix. How are we placed on the liability side?
Rakesh Singh, Executive Director and CEO
Cost of funds, if you look at our liability borrowing, 65% is floating and asset is 71% floating. In a way, it is very, very balanced. As we grow personal and consumer segment... our margins should expand.
Answered
Medium priority
Will existing product suite suffice to double loan book in three years?
Asked by Abhijit Tibrewal, Motilal Oswal
Confirmed existing suite plus a few additions, and explained growth levers.
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Question
Will the existing product suite suffice, or are there any newer products that you would look to pilot to double this doubling of the [loans] next three years?
Rakesh Singh, Executive Director and CEO
We might look at one or two more products, but the way we are looking at, we want to spread our existing branches... and also the digital assets which we have created.
Partial answer
Medium priority
What is the target product mix for PNC loans and NBFC ROA outlook?
Asked by Abhijit Tibrewal, Motilal Oswal
Confirmed product mix target but declined to give NBFC ROA guidance.
no ROA guidance givendeferred to future
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Question
Is the idea, while we go in a calibrated manner, the intent will be that over a course of time, take it back to 20%? How should we look at ROAs in the NBFC release?
Rakesh Singh, Executive Director and CEO
Personal and consumer can go to around close to 20%, and unsecured business will again grow. In terms of guidance on the ROA, we will, I think, wait and see how the next couple of quarters goes.
Answered
Medium priority
What yield does the unsecured personal loan portfolio run at?
Asked by Gaurav Kochar, Mirae Asset
Provided specific yield range and quantified margin impact.
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Question
What kind of yield does this portfolio run at? Just to understand how much can it benefit on margins.
Rakesh Singh, Executive Director and CEO
This portfolio runs at closer to 18%-19%. I think a 200 basis point improvement in the product mix should help us expand our margins.
Answered
Low priority
What is the monthly run-rate of personal loan disbursements from ABCD app?
Asked by Nidhesh Jain, Investec
Provided specific monthly run-rate number.
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Question
You mentioned 5% of personal and consumer loans have come from this app. Can you quantify in INR crore?
Rakesh Singh, Executive Director and CEO
At INR 100 crore run rate per month, Nidhesh. I think we'll keep it.