Any current/future new fundraising through debt or equity?

The company successfully raised ₹830 Crore through Non-Convertible Debentures (NCDs) from IFC in December 2024. In Q3 FY25, the Housing Finance Company (HFC) subsidiary received an equity infusion of ₹300 Crore, taking the total equity infusion during the year to ₹900 Crore to support growth momentum. The life insurance business raised capital via a rights issue in December 2024, amounting to ₹311 Crore, fully subscribed by existing shareholders. No explicit mention of any upcoming or future fundraising through debt or equity was provided beyond these events. The company’s borrowing profile is

Any current/future capex/capital investment/strategic investment?

The Board of Directors approved the amalgamation of Aditya Birla Finance with Aditya Birla Capital in March 2024, subject to regulatory approvals. The amalgamation has been approved by shareholders and application filed before NCLT Ahmedabad; expected completion by March 31, 2025. Investment in expanding distribution capacity, including proprietary channels and newly acquired bank partners, to increase mind share in insurance business. Focus on digital transformation with investments in AI/ML-driven claims auto-adjudication engine and advanced sales activity tools. Strengthening of the Asset M

Future growth expectations in sales/revenue/volumes?

NBFC portfolio expected to grow steadily, with a 21% YoY growth recorded in Q3 FY25 and continued focus on MSME segment driving 32% YoY growth in business loans. Housing Finance Company (HFC) business shows robust growth with 62% YoY increase in AUM; sustainable growth expected driven by broad segment focus including non-housing loans. Net Interest Income (NII) anticipated to stabilize in the 4.6%-4.7% range over the next 18-24 months amid competitive intensity. Operating expense ratio expected to reduce from current 2.9% to 1.6%-1.7%, improving profitability and ROA forecasted between 2

Future growth expectations in earnings/operating earnings/profits/EPS?

Consolidated profit after tax for the quarter stood at ₹708 crore, slightly down from ₹736 crore YoY. NBFC portfolio grew 21% YoY; HFC loan portfolio grew 62% YoY with strong growth momentum. NII expected to range between 4.6% to 4.7% in the next 18-24 months due to competitive intensity and borrowing costs. Operating expenses (opex) expected to reduce from current 2.9% of AUM to 1.6%-1.7% in 18-24 months, improving operating leverage. Anticipated credit costs to remain stable below 1.5%. ROA expected to improve from current ~2.1% to between 2% to 2.1% generally, aiming up to 2.5%-2.6% as marg

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Aditya Birla Capital LtdQ4 FY26Finance

Aditya Birla Capital Ltd Q4 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹384P/E: 24.6Market Cap: ₹93.6K CrSector: Finance

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→NBFC portfolio expected to grow steadily, with a 21% YoY growth recorded in Q3 FY25 and continued focus on MSME segment driving 32% YoY growth in business loans.
→Housing Finance Company (HFC) business shows robust growth with 62% YoY increase in AUM; sustainable growth expected driven by broad segment focus including non-housing loans.
→Net Interest Income (NII) anticipated to stabilize in the 4.6%-4.7% range over the next 18-24 months amid competitive intensity.
→Operating expense ratio expected to reduce from current 2.9% to 1.6%-1.7%, improving profitability and ROA forecasted between 2%-2.1% within 18-24 months.
→Health Insurance business is expanding rapidly, with 39%-59% YoY premium growth, targeting improved net margins of 17%-18% by year-end.
→Asset Management Company (AMC) sees 23% YoY growth in AUM, with continued traction in equity net sales and new product launches.
→Digital and ecosystem platforms like ABCD app, Udyog Plus, and ABG network set to bolster customer acquisition and drive future loan disbursements.

Margin guidance

Category 3

→Consolidated profit after tax for the quarter stood at ₹708 crore, slightly down from ₹736 crore YoY.
→NBFC portfolio grew 21% YoY; HFC loan portfolio grew 62% YoY with strong growth momentum.
→NII expected to range between 4.6% to 4.7% in the next 18-24 months due to competitive intensity and borrowing costs.
→Operating expenses (opex) expected to reduce from current 2.9% of AUM to 1.6%-1.7% in 18-24 months, improving operating leverage.
→Anticipated credit costs to remain stable below 1.5%.
→ROA expected to improve from current ~2.1% to between 2% to 2.1% generally, aiming up to 2.5%-2.6% as margins and portfolio mix improve.
→Health insurance gross written premium grew 39% YoY with improved combined ratio enhancing profitability.
→AMC revenue up 27% YoY, operating profit up 35% YoY signaling strong earnings growth.
→Overall strategy focused on quality and profitable growth leveraging data, digital, and prudent risk management.

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Fundraise plans

Yes

→The company successfully raised ₹830 Crore through Non-Convertible Debentures (NCDs) from IFC in December 2024.
→In Q3 FY25, the Housing Finance Company (HFC) subsidiary received an equity infusion of ₹300 Crore, taking the total equity infusion during the year to ₹900 Crore to support growth momentum.
→The life insurance business raised capital via a rights issue in December 2024, amounting to ₹311 Crore, fully subscribed by existing shareholders.
→No explicit mention of any upcoming or future fundraising through debt or equity was provided beyond these events.
→The company’s borrowing profile is well diversified and cost-effective with a competitive cost of borrowings at 7.77%.

Order book

The provided transcript of ABCL’s Q3 FY25 Earnings Call does not explicitly mention details about a current or expected order book or pending orders. The focus is primarily on financial performance, disbursement growth, asset under management, digital initiatives, product mix, margin outlook, and regulatory impacts. Key highlights include: - Highest ever quarterly disbursement of ₹4,750 Cr, up 136% YoY and 18% QoQ (Q3 FY25). - AUM stands at ₹26,714 Cr, up 62% YoY and 15% QoQ. - Various digital platforms like ABCD app and Udyog Plus contributing to growth and customer acquisition. - No direct mention or data related to orderbook or pending orders in the document. If you need specific orderbook or pending order information, this call transcript does not include it.

Capex plans

Yes

→The Board of Directors approved the amalgamation of Aditya Birla Finance with Aditya Birla Capital in March 2024, subject to regulatory approvals.
→The amalgamation has been approved by shareholders and application filed before NCLT Ahmedabad; expected completion by March 31, 2025.
→Investment in expanding distribution capacity, including proprietary channels and newly acquired bank partners, to increase mind share in insurance business.
→Focus on digital transformation with investments in AI/ML-driven claims auto-adjudication engine and advanced sales activity tools.
→Strengthening of the Asset Management Company's team to enhance PMS and AIF offerings in Equity and Fixed Income.
→Raising capital through rights issue (Rs 311 Crores in Dec 2024) and raising NCDs amounting to Rs 830 Crores from IFC in Dec 2024 to fund growth.
→Branch expansion targeting Tier 3 and Tier 4 towns with 1,482 branches as of Dec-end, focusing on white spaces and new customer segments.

How does Aditya Birla Capital Ltd rank vs peers in Finance?

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