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Revenue
₹12,007 Cr
verified against source
Revenue YoY
36%
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 Q2 FY25 with consolidated PAT of INR 1,001 crore (up 42% YoY), including a one-time gain of INR 167 crore from the sale of its broking subsidiary. Revenue grew 36% YoY to INR 12,007 crore. The NBFC portfolio grew 23% YoY to INR 1.15 trillion, with credit cost improving to 1.25% (down 18 bps QoQ). The housing finance business saw AUM surge 51% YoY to INR 23,236 crore, driven by record disbursements. Asset management AUM reached INR 3.8 trillion, with SIP flows up 47% YoY to INR 1,428 crore. Life insurance VNB margin was 7.4% in H1, with management guiding to 17-18% for the full year. Health insurance GWP grew 39% YoY. Key risks include potential margin pressure from new surrender regulations in life insurance and elevated competitive intensity in lending. Management remains confident in achieving 25% CAGR in NBFC portfolio over 2-3 years.
Colored figures show movement against the previous available record.
Guidance to track
- Management reiterated confidence in growing the overall NBFC loan portfolio at a CAGR of 25% over the next two to three years.
- Despite H1 VNB margin of 7.4%, management expects full-year VNB margin to be in the 17-18% range, driven by product mix optimization and agency channel growth.
- Management guided that the housing finance portfolio is on track to double over the next 18-24 months, supported by digital and distribution investments.
- Management expects NBFC credit cost to remain range-bound around 1.5%, with current levels at 1.25%.
Risks flagged
- Analyst questioned the feasibility of achieving 17-18% VNB margin in H2 given H1 was only 7.4%, with ULIP mix high and new surrender regulations effective October 1.
- NIM declined sequentially due to increasing share of secured loans (74% of portfolio), which carry lower yields. Recovery may take a few quarters.
- Analyst raised concerns about RBI's stance on aggressive lending in housing; management denied any direct communication but acknowledged industry-wide caution.
- PCR in NBFC declined to 46% (secured segment to ~30%) due to product mix shift, which could leave less buffer if stress emerges.
Key quotes
- We remain confident in growing the overall NBFC portfolio by a CAGR of 25% over the next two to three years.
- Our credit loss has improved from 1.43% in Q1 to 1.25% in Q2 FY25, which is the best in class in the industry.
- We have a plan to get in place our projected net margins for the year. Focus on H2 will be on moderating ULIP and higher productivity on investments than in H1.
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