Aditya Birla Capital sizzles as Q1 PAT jumps 10% YoY to Rs 835 cr

Aditya Birla Capital soared 9.98% to Rs 276.55 after the company's consolidated net profit jumped 10.04% to Rs 835.08 crore on 9.57% rise in total revenue from operations to Rs 9,502.69 crore in Q1 FY26 over Q1 FY25.

Profit before tax rallied 12.79% year on year to Rs 1,178.39 crore in the quarter ended 30 June 2025.

The total AUM (AMC, life insurance and health insurance) grew by 20% year-on-year to Rs 5,53,504 crore as on 30 June 2025.

The overall lending portfolio (NBFC and HFC) grew by 30% year-on-year to Rs 1,65,832 crore as on 30 June 2025.

On segmental front, the companys revenue from housing finance stood at Rs 893.48 crore (up 65.30% YoY), revenue from life Insurance was at Rs 4,501.06 crore (up 2.31% YoY), income from asset management came in at Rs 564.58 crore (up 17.42% YoY), revenue from stock and securities broking stood at Rs 112.71 crore (down 5.61% YoY) and revenue from health insurance was at Rs 1,291.73 crore in Q1 FY26.

During the period, the NBFC business demonstrated strong performance across key metrics. Disbursements grew by 18% year-on-year to Rs 15,851 crore, reflecting healthy credit demand. Assets under management (AUM) increased by 22% year-on-year to Rs 1,31,227 crore. The return on assets remained robust at 2.25%, underscoring efficient capital deployment.

The Housing Finance business delivered strong performance during the period, with disbursements rising by 76% year-on-year to Rs 5,404 crore. Assets Under Management (AUM) also saw robust growth, increasing by 70% YoY to reach Rs 34,605 crore. Profit before tax registered a significant improvement, growing by 82% YoY to Rs 154 crore, reflecting both operational efficiency and strong business momentum.

The Asset Management business recorded steady growth during the period. Mutual fund quarterly average assets under management (QAAUM) increased by 14% year-on-year to Rs 4,03,479 crore, with the equity mix standing at 44.7%. Equity QAAUM grew by 11% year-on-year to Rs 1,80,184 crore. Individual monthly average assets under management rose by 10% year-on-year to Rs 2,03,813 crore.

Additionally, monthly Systematic Investment Plan (SIP) flows grew by 4% year-on-year, reaching Rs 1,140 crore in June 2025.

The Life Insurance business delivered strong growth during the period. Individual First Year Premium (FYP) rose by 23% year-on-year to Rs 795 crore, with the company's market share in individual FYP increasing by 60 basis points to 5.1%. Renewal premium grew by 18% year-on-year to Rs 1,978 crore.

The 13th month persistency ratio remained in the top quartile of the industry at 87%, reflecting strong customer retention. The net Value of New Business (VNB) margin expanded by 109 basis points to 7.5%, while the absolute net VNB grew by 27% year-on-year to Rs 66 crore.

Aditya Birla Capital is the holding company for the financial services businesses of the Aditya Birla Group.

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