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16 Mar 2026

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Geared for strong growth




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Aditya Birla Capital is one of the major diversified financial services companies in India and the holding company of the financial services businesses of the Aditya Birla Group. The company, through its subsidiaries, has a significant presence spanning multiple sectors, including NBFC, asset management, life insurance, health insurance, housing finance, private equity, broking, wealth management, ARC and pension fund management, catering to the diverse needs of its customers across their life cycle.

Aditya Birla Capital’s overall lending portfolio (NBFC and HFC) at the end of December 2025 stood at Rs 190386 crore, a rise of 30%YoY and 7%QoQ.

The NBFC portfolio moved up 24% yoy to Rs 148182 crore. On the loan mix, the secured and unsecured business loans to SME was 46%, personal and consumer segment was 23% and corporate & mid-market was 31%.

Its housing finance company is one of the fastest growing HFCs in India with its AUM growing at a CAGR of 48% in last 3 years. And it is among the top 3 players in terms of incremental loan book growth. It’s AUM at December 2025 end stood at Rs 42204 crore, a growth of 58%YoY and 10%QoQ. The disbursements surged 30% YoY and 7% QoQ to Rs 6165 crore in Q3FY26. The average LTV on the housing loan book is between 50-52%. About 15.8% of portfolio is construction finance portfolio.

The company has approved a proposal for primary capital infusion of Rs 2750 crore in Aditya Birla Housing Finance (a wholly owned subsidiary of Aditya Birla Capital) from Advent International. The transaction values ABHFL at Rs 19250 crore on a post-money basis and post completion of capital infusion the ABCL will hold 85.7% in ABHFL. The capital infusion will take care of growth capital requirements for the next 2-2.5 years.

The lending businesses of the company have continued to improve asset quality with provision coverage ratio on bad loans. NBFC segments overall GS2 and GS3 book declined by 23 bps qoq and 145 bps yoy to 2.8%. GS3 ratio stood at 1.51% at end December 2025, which is well provided for with a PCR of 44.3%. The credit costs have reduced by 13 bps yoy to 1.23% for Q3FY2026 which is well within the guided range of 1.2-1.3%. Going forward, the company remains confident to maintain the credit cost in the same range at the company level.

The company has a provision cover of 68.1% on personal and consumer segment. The provision coverage on unsecured business is almost 45% with 40% of portfolio backed by the credit guarantee. The unsecured business loan portfolio grew 12% qoq and 36% yoy and comprises about 10.3% of the overall NBFC portfolio.

Housing finance asset quality remains best-in-class with gross stage 3 ratio of 0.54% and net stage 3 ratio of 0.23%. Stage 2 & 3 reduced to 0.95% at end December 2025, improving by 82 bps yoy and 15 bps qoq.

For the quarter ending December 2025, it registered a 33% jump in net profit to Rs 945.02 crore on an income from operation of Rs 11952.09 crore, an increase of 27%. The revenue from NBFC increased 17% to Rs 4381.42 crore and Life Insurance 34% to Rs 6411.94 crore, while the revenue from Health Insurance moved up 56% to Rs 1704.61 crore. Further, the revenue from Housing Finance jumped 56% to Rs 1071.37 crore and Asset Management 16% to Rs 561.63 crore, while the revenue from Stock & Securities Broking increased 12% to Rs 119.58 crore. However, the revenue from Other Financial Services dipped 48% to Rs 51.03 crore in Q3FY2026. For the nine months ended December 2025, consolidated net revenue increased 14% to Rs 32049.74 crore and the net profit was up 7% to Rs 2635.34 crore.

We expect the company to register EPS of Rs 16.1 in FY2026 and 16.8 in FY2027. The adjusted book value of the company is expected to rise to Rs 125.1 by March 2026 and Rs 141.5 by March 2027. The scrip closed at Rs 324.30 on the BSE on March 9, 2026.

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