Aditya Birla Capital (ABCAPITAL) investor relations material

Executive summary

• Consolidated profit after tax rose 40% year-over-year to ₹1,175 crore in Q1 FY27, with consolidated revenue up 29% to ₹14,731 crore, driven by strong growth across lending, insurance, and asset management businesses, and robust asset quality maintained.

• Total lending portfolio grew 32% year-over-year to ₹2,19,289 crore, and total AUM increased 36% to ₹7,52,745 crore, with NBFC portfolio up 28% and housing finance portfolio up 50%.

• Asset management AUM crossed ₹6 lakh crore, up 48% year-over-year, with mutual fund AUM up 6% and equity AUM up 10%.

• Raised ₹4,000 crore equity growth capital via preferential allotment, onboarding IFC as a key investor.

• Strong digital adoption and AI-driven initiatives enhanced customer engagement, underwriting, and operational efficiency across segments.

Financial highlights

• NBFC profit after tax grew 35% year-over-year to ₹927 crore; ROE expanded by 14 bps to 2.39%.

• Housing finance profit before tax nearly doubled year-over-year to ₹300 crore; AUM reached ₹51,833 crore, up 50% year-over-year.

• Life insurance VNB margin nearly doubled to 15.1%; individual first year premium up 20% year-over-year; health insurance premium up 50% year-over-year.

• AMC Q1 revenue at ₹620 crore, profit after tax at ₹309 crore, both up year-over-year.

• Health insurance business turned profitable with ₹18 crore profit versus ₹28 crore loss last year; GWP up 50% year-over-year, market share increased by 200 bps to 16.2%.

Outlook and guidance

• Targeting housing finance AUM of ₹1 lakh crore and 15% ROE in 6–8 quarters.

• Life insurance aims for 20%+ CAGR in individual FYP and VNB margin above 20% over three years.

• Gold loan business to launch in Q2, targeting 200–300 branches by March 2027 and 1,000 branches in three years.

• Focus on accelerating growth in prime and affordable segments, expanding digital capabilities, and deepening market penetration in Tier 2, 3, and 4 cities.

• Health insurance to scale proprietary business and leverage data-driven customer engagement.