NBFC AUM
₹1.6 lakh cr
+27% YoY
Driven by retail and MSME segments; 85% of growth from these segments.
ADITYABIRLACAPITAL
Financial Services
2026-04-??
Aditya Birla Capital Ltd — Q4 FY26
Aditya Birla Capital delivered a strong Q4 FY26 with consolidated PAT (ex-one-offs) up 30% YoY to ₹1,124 crore, driven by robust growth across NBFC, housing finance, and insurance segments.
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2-Minute Summary
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Aditya Birla Capital delivered a strong Q4 FY26 with consolidated PAT (ex-one-offs) up 30% YoY to ₹1,124 crore, driven by robust growth across NBFC, housing finance, and insurance segments. NBFC AUM grew 27% YoY to ₹1.6 lakh crore, with retail/MSME contributing 85% of incremental growth. Housing finance AUM surged 53% YoY to ₹47,450 crore, while life insurance VNB margin expanded 260bps to 20.6%. Management guided for NBFC ROA of 2.5% by FY27, housing finance ROA of 2.1-2.2% in FY27, and life insurance individual FYP CAGR of 20%+ over three years. Key risk: margin compression from competitive pressures and potential normalization of credit costs as unsecured mix increases.
Key Numbers
Housing Finance AUM
₹47,450 cr
+53% YoY
Highest ever disbursements of ₹25,320 cr in FY26, up 44% YoY.
Life Insurance VNB Margin
20.6%
+260bps YoY
Expanded due to favorable product mix shift towards traditional and protection.
NBFC Credit Cost
1.04%
-19bps QoQ
Lowest in five years; guided to remain in 1.1-1.2% range.
Management Guidance
NBFC ROA target of 2.5% by FY27
Management expects ROA to reach 2.5% by end of FY27, driven by margin expansion from product mix shift and stable credit costs.
Management guidance marginsHousing finance ROA of 2.1-2.2% in FY27
Housing finance expects ROA in the range of 2.1-2.2% for FY27, supported by operating leverage and stable credit costs.
Management guidance marginsLife insurance individual FYP CAGR of 20%+ over three years
Life insurance business targets a CAGR of over 20% in individual first year premium over the next three years.
Management guidance growthHousing finance AUM target of ₹1 lakh crore in 24-30 months
Housing finance aims to achieve AUM of ₹1 lakh crore within the next 24 to 30 months, driven by branch expansion and digital initiatives.
Management guidance growthKey Risks
Margin compression from competitive pressures
Housing finance NIM compressed 6bps QoQ due to seasonality and competition; NBFC margins also saw slight compression from MTM losses.
medium · analyst_questionCredit cost normalization with unsecured growth
As unsecured portfolio grows, credit costs may rise from current low of 1.04% to guided 1.1-1.2%, potentially impacting ROA.
medium · analyst_questionGeopolitical tensions impacting portfolio
Management noted no material impact yet but remains watchful of geopolitical tensions in West Asia, which could affect asset quality.
low · management_commentaryLife insurance assumption changes drag on operating variance
Negative operating variance in life insurance due to assumption changes ahead of IFRS transition; may persist in near term.
low · analyst_questionNotable Quotes
Our strategy, disciplined execution and building blocks that we have put in place give us a confidence to sustain growth, gain market share and improve profitability while maintaining strong portfolio quality across our businesses.
We are looking at by end of this year we are looking at 2.5% ROA this is what we are looking at.
Our guidance continues to grow the individual FIP at a CAGR of 20% plus for the next three years.
Frequently Asked Questions
What was Aditya Birla Capital's revenue in Q4 FY26?
Aditya Birla Capital reported revenue of — in Q4 FY26, representing a +12% change compared to the same quarter last year.
What guidance did Aditya Birla Capital management give for FY27?
NBFC ROA target of 2.5% by FY27: Management expects ROA to reach 2.5% by end of FY27, driven by margin expansion from product mix shift and stable credit costs. Housing finance ROA of 2.1-2.2% in FY27: Housing finance expects ROA in the range of 2.1-2.2% for FY27, supported by operating leverage and stable credit costs. Life insurance individual FYP CAGR of 20%+ over three years: Life insurance business targets a CAGR of over 20% in individual first year premium over the next three years. Housing finance AUM target of ₹1 lakh crore in 24-30 months: Housing finance aims to achieve AUM of ₹1 lakh crore within the next 24 to 30 months, driven by branch expansion and digital initiatives.
What are the key risks for Aditya Birla Capital in FY27?
Key risks include Margin compression from competitive pressures — Housing finance NIM compressed 6bps QoQ due to seasonality and competition; NBFC margins also saw slight compression from MTM losses.; Credit cost normalization with unsecured growth — As unsecured portfolio grows, credit costs may rise from current low of 1.04% to guided 1.1-1.2%, potentially impacting ROA.; Geopolitical tensions impacting portfolio — Management noted no material impact yet but remains watchful of geopolitical tensions in West Asia, which could affect asset quality.; Life insurance assumption changes drag on operating variance — Negative operating variance in life insurance due to assumption changes ahead of IFRS transition; may persist in near term..
Did Aditya Birla Capital meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Aditya Birla Capital Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.