Aditya Birla Capital Limited — Q1 FY26
Aditya Birla Capital reported a solid Q1 FY26 with consolidated PAT up 10% YoY to ₹835 crore and revenue up 10% to ₹11,333 crore.
bullish
high
✓ Verified against BSE filing
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.
73%Questions answered1Evaded / deflected11Questions audited
Answered
High priority
Customer profile in unsecured MSME and how guarantee scheme works.
Asked by Chintan Shah, ICICI Securities
Management provided specific portfolio breakdown and guarantee details including coverage percentage and timeline.
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Question
I just wanted to understand what is our customer profile here? Typically, how much would be the unsecured self-employed profile mix in the total pool? Secondly, on the guarantee scheme which we are highlighting, 53% of the portfolio is covered under guarantee. How does this guarantee actually work and what is the capital timeline to get the money, and what is the final cost which we have to bear in case of the guarantee?
Rakesh Singh, Executive Director and CEO of NBFC
Your first question on the unsecured SME, if you look at our total book, it is INR 12,000 crores. Out of that, 1.6% is supply chain... Then we have 6.5% which is business loan... The more ticket unsecured loan, we call it STUL, that is around 1.3%... In terms of your second question... 53% of the stage three is guaranteed by the CGT SME government guarantee... 75% of the principal gets covered by the guarantee and timeline is it takes between 12-18 months.
Evasive
Medium priority
When will unsecured MSME disbursements normalize?
Asked by Chintan Shah, ICICI Securities
Management did not provide a specific timeline for normalization, only stated continued monitoring.
no timeline givenreframed to ongoing monitoring
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Question
When can we see normalization of disbursement or where do you see the kind of picking out of normalcy kicking in for this portfolio?
Rakesh Singh, Executive Director and CEO of NBFC
If you look at our business loans, we will continue to grow our business loan in our portfolio in that segment... We will continue to grow the short-term unsecured business. What we are tightening is the small, ticket unsecured load, and we will continue to watch that and see how it really performs.
Answered
High priority
Size of small ticket unsecured loan portfolio.
Asked by Chintan Shah, ICICI Securities
Management gave a specific number for the portfolio size.
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Question
The small ticket LAP is how much of the total unsecured MSME?
Rakesh Singh, Executive Director and CEO of NBFC
That's close to INR 1,700 crore, which is there on the total portfolio.
Partial answer
Medium priority
Risk only on INR 1,700 crore portfolio?
Asked by Chintan Shah, ICICI Securities
Management confirmed risk only on sourcing but did not fully address portfolio risk.
limited to sourcing, not full portfolio risk
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Question
Basically, the risk is only on that INR 1,700 crore portfolio where we envisage some uncertainty or where you are cautious. Right?
Rakesh Singh, Executive Director and CEO of NBFC
From a sourcing point of view, yes. In terms of portfolio, this is the portfolio that would have been underwritten 12, 18 months back or three to four months back. Yes, we are watching it very closely.
Answered
High priority
Competition and growth outlook for housing portfolio.
Asked by Chintan Shah, ICICI Securities
Management addressed competition, BT out, and growth trajectory with specific context.
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Question
Now, given the repo rate cut and probably some players have also highlighted there are higher instances of BT out, particularly in the prime portfolio. How are we seeing the competition panning out? ... Any thoughts that growth could slow down over the remaining part of the year, and what growth kind of trajectory could we be looking at for the housing portfolio?
Pankaj Gadgil, MD and CEO of Aditya Birla Housing Finance Limited
For us, growth is coming in all the three segments, affordable, prime, and developer. ... the BT out ratio remains quite similar to where we were in the month of quarter three. ... I think we can see the growth momentum remaining quite consistent for us.
Partial answer
High priority
NIM trajectory and consumer leverage outlook.
Asked by Avinash Singh, Emkay Global
Management gave directional improvement but no quantitative NIM guidance.
no specific NIM guidancequalitative only
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Question
The first one is on, you know, NIM in the lending business, the NIM is still falling. ... can you provide some kind of guidance that if this NIM has bottomed out and what sort of trajectory could we expect? ... The second question is, your current capital adequacy is, I think, near 18%. ... at what juncture will you be looking to raise capital?
Rakesh Singh, Executive Director and CEO of NBFC
If you look at NIM, it is an outcome of the correct mix which we have. ... We expect that as the portfolio grows and our unsecured business, because business loans growth, our margins should start improving. In the next few quarters, you will see margins improving from here on.
Answered
High priority
Capital raising plans given growth.
Asked by Avinash Singh, Emkay Global
Management provided specific capital ratios and timeline for sufficiency.
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Question
Your current capital adequacy is, I think, near 18%. Tier one would be slightly lower. At what kind of growth are you envisaging and at what juncture will you be looking to raise capital?
Vijay Deshwal, Chief Strategy Officer and Head of Investor Relations
Yes, our tier one ratio is 15.62% and total cap add is at about 18.11%. ... we are sufficiently funded for our growth requirement for next nine to 12 months and to look at any capital situation post that.
Answered
High priority
Stress only in small ticket unsecured loans?
Asked by Abhijit Tibrewal, Motilal Oswal
Management confirmed stress is limited to small ticket unsecured loans.
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Question
I'm just trying to understand, it is only in this small ticket unsecured loans where we are seeing some stress building up. Otherwise, in business loans that we do in unsecured MSME, we are not seeing any stress building up, is it which you called out is about 6.5% of the portfolio?
Rakesh Singh, Executive Director and CEO of NBFC
Yes, Abhijit, you are right. We are not seeing any stress in any other portfolio.
Answered
Medium priority
Government guarantee coverage at overall portfolio level.
Asked by Abhijit Tibrewal, Motilal Oswal
Management gave a specific coverage percentage for the overall portfolio.
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Question
I think on one of your slides and also in your opening remarks, you spelled out that close to 52% of your stage three in unsecured MSME is covered in the government schemes. At the overall portfolio level, what is covered under the finance scheme?
Rakesh Singh, Executive Director and CEO of NBFC
Similar, upwards of 50% is covered on the overall portfolio on the business and STUL.
Partial answer
Medium priority
Trends in LAP portfolio and micro LAP exposure.
Asked by Abhijit Tibrewal, Motilal Oswal
Management discussed LAP performance but did not provide micro LAP size.
micro LAP size not quantified
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Question
I was just trying to understand what are you seeing in the LAP portfolio today because given how things have moved in the last 12-18 months ... And the related question in our HFC business, are we doing micro LAP or in the NBFC are we doing micro LAP? And if yes, how big is that portfolio, micro LAP?
Rakesh Singh, Executive Director and CEO of NBFC
If you look at touchpoint, I think the performance is very, very strong both in terms of the overall performance, and this is our oldest portfolio. ... Even if you see the time period which you just mentioned, both our stage two and stage three has come down significantly.
Declined
Low priority
Write-off amount in NBFC and HFC.
Asked by Abhijit Tibrewal, Motilal Oswal
Management explicitly declined to provide write-off numbers.
refused to disclose
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Question
If you could also share what is the write-off that we did in the quarter in NBFC and HFC, and if you just answer that, then I had a follow-up question on this.
Vijay Deshwal, Chief Strategy Officer and Head of Investor Relations
We do not disclose write-off as of now. I think, we will stay with that.
Partial answer
High priority
Provision coverage adequacy and OpEx improvement in HFC.
Asked by Punit Bahlani, Macquarie
Management defended PCR but did not provide OpEx component breakdown.
no detailed OpEx breakdown
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Question
Yeah, just firstly on the NBFC, bit the unsecured business NPAs have increased and the PCR at 35% appears to be low. ... Thirdly, on the housing finance bit, there has been a big improvement in OpEx this quarter. Is it primarily driven by operating leverage or is there any component that is like, you know, we have saved on some OpEx components?
Rakesh Singh, Executive Director and CEO of NBFC
As I mentioned, 75% of the principal is guaranteed. We believe that 35.7% or 36% PCR is quite sufficient in this work.