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Revenue
₹12,481 Cr
verified against source
Revenue YoY
4%
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 3% YoY PAT growth to INR 855 crore in Q2 FY26, with consolidated revenue up 4% YoY to INR 12,481 crore. The NBFC segment saw record disbursements of INR 21,990 crore (up 39% QoQ) and a 22% YoY portfolio growth to INR 1.4 trillion, while asset quality improved with GS2+GS3 declining 121bps YoY to 3.03%. The housing finance business continued strong momentum with 65% YoY AUM growth to INR 38,270 crore and ROA improving 23bps QoQ to 1.82%. The life insurance business guided for net VNB margin above 18% in FY26, while health insurance aims to improve combined ratio from 105% to below 105%. Key risks include potential margin pressure from GST exemption on insurance products and competitive intensity in housing finance.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects credit cost to stay in the 1.2%-1.3% range for the full year, supported by improving asset quality.
- Housing finance business aims to achieve ROA of 2%-2.2% over the next six to eight quarters, driven by operating leverage.
- Despite GST exemption impact, management maintains guidance of net VNB margin exceeding 18% for FY26.
- Health insurance business expects to improve combined ratio from 105% in previous year to below 105% in FY26.
Risks flagged
- GST waiver on life and health insurance premiums may cause short-term margin pressure due to loss of input tax credits and inability to immediately reprice products.
- Increasing competition in the housing finance segment could compress net interest margins, though management expects operating leverage to offset.
- Proposed SEBI changes to total expense ratio (TER) calculation could impact AMC profitability, though management is engaging with regulators.
- Despite margin expansion and lower credit costs, NBFC ROA remained at 2.2%, raising questions about achieving medium-term target of 2.5%.
Key quotes
- We are starting to see some benefits of these measures in terms of record automobile and light goods sales since the last week of September.
- Our guidance is to grow the individual FIP at a figure of 20% plus. While achieving this, we intend expanding our current VNB margins of 18% plus and, in absolute numbers, double the value of our net VNB in the next three years' time frame.
- Given this consistent improvement, we are well on track to achieve an ROA of 2%-2.2% over the next six to eight quarters, consistent with our guidance.
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