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Revenue
₹10,258 Cr
verified against source
Revenue YoY
26%
reported change
EBITDA
Pending
latest reported figure
Source
screener in partial
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Aditya Birla Capital reported a strong Q1 FY25 with consolidated PAT up 15% YoY to INR 745 crore and revenue up 26% YoY to INR 10,258 crore. Growth was driven by NBFC portfolio expansion of 25% YoY, led by SME loans (up 39% YoY), and robust housing finance growth (portfolio up 41% YoY). The health insurance business saw gross written premium surge 35% YoY, while life insurance proprietary channels grew 33% YoY. Management reiterated its 25% CAGR portfolio growth target for NBFC and guided life insurance VNB margins of 18-20% for FY25. Key risks include margin compression in life insurance due to product mix and regulatory changes, and potential asset quality pressure in unsecured lending segments.
Colored figures show movement against the previous available record.
Guidance to track
- Management reiterated confidence in achieving 25% compounded annual growth in NBFC loan portfolio over the next 2-3 years.
- Despite Q1 VNB margin of 6.5%, management expects full-year VNB margins to be in the range of 18-20%.
- Health insurance business guided to achieve a combined ratio of 100% by FY26, improving from 112% in Q1 FY25.
- Management stated that credit cost for NBFC remains well within the stated guidance of 1.5%.
Risks flagged
- New surrender value regulations could impact traditional product margins by 150-200 bps, though management expects to mitigate through commission realignment.
- Stage 3 in unsecured business loans inched up due to denominator effect; management noted it is stable but remains a watch area.
- Current ROA of 2.41% is below the medium-term target of 2.7-3%, and product mix shift could delay achievement.
- Life insurance growth was impacted by muted performance from one banca partner; new tie-ups may take time to scale.
Key quotes
- Our prudent risk management practices have enabled us to pursue growth while protecting our capital.
- We continue to maintain our guidance on the net VNB margins for the end of the year to be in the range of 18%-20%.
- We continue to project strong growth in FY 25, coupled with consistent improvement in profitability towards the combined ratio of 1% in FY 26, as we had guided earlier.
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