Aditya Birla Capital’s June Quarter Profit Up by 10%

Mumbai, August 4, 2025 – Aditya Birla Capital Ltd (NSE: ABCAPITAL) reported strong financial performance for the quarter ended June 30, 2025 (Q1 FY26), posting a 10% year-on-year (YoY) increase in consolidated Profit After Tax (PAT) at ₹835 crore, supported by broad-based growth across its lending, insurance, and asset management businesses.

On August 4th, the stock of Aditya Birla Capital Ltd. closed at ₹278.45, up 10.74% (₹27.00) from the previous day’s closing price of ₹251.45.

Consolidated Financial Highlights (₹ crore)

Aditya Birla Capital’s consolidated net profit jumped 10.04% to ₹835.08 crore on a 9.57% rise in total revenue from operations to ₹9,502.69 crore in Q1 FY26 over Q1 FY25. Profit before tax rallied 12.79% year-on-year to ₹1,178.39 crore in the quarter ended 30 June 2025. The life insurance first-year premium (FYP) was ₹795 crore, while the gross written premium (GWP) for health insurance was ₹1,357 crore.

There was strong double-digit growth year-on-year across all key metrics, indicating that revenue increased by 10% and profit after tax (PAT) also rose by 10% year-on-year, driven by an increase in premiums ranging from 23% to 30% and improved profitability.

Segment-Wise Profitability (Q1 FY26)

The lending segment (excluding housing finance) delivered profit before tax (PBT) of ₹925 crore in Q1 FY26, recording an 11% year-on-year growth. Housing finance PBT was ₹154 crore, representing a substantial 82% increase. Asset management delivered ₹277 crore of PBT, up 18%. Life insurance’s PBT growth was 80% to ₹39 crore. Losses were reduced in health insurance (₹36 crore) and other segments (₹48 crore).

Business Segment Performance

Lending (NBFC + HFC)

During Q1 FY26, total lending AUM (NBFC + HFC) was ₹1,65,832 crore, which was up 30% YoY and 5% QoQ. Standalone NBFC AUM was up 22% YoY to ₹131,227 crore, and housing finance AUM was up 70% YoY to ₹34,605 crore. The net interest income for the NBFC segment was ₹1,859 crore, which was up 9% YoY. Return on assets for NBFCs was 2.25%, and for housing finance, it was 1.59%. Asset quality also continued to normalize, with GS2 + GS3 down from 4.45% YoY to 3.70%.

Asset Management

In Q1 FY26, the asset management business saw a quarterly average AUM (QAAUM) of ₹4,03,479 crore, a 14% YoY increase. The equity mix was 44.7%. Operating profit before tax increased by 16% to ₹254 crore, and PAT was up 18% to ₹277 crore. There were ₹1,140 crore attributable to SIP contributions in June 2025. Passive AUM was ₹36,405 crore and has tripled since June 2022.

Life Insurance (Aditya Birla Sun Life)

Aditya Birla Sun Life posted a 23% YoY increase in individual first-year premium (FYP) to ₹795 crore. The total premium fell by 10% to ₹3,594 crore due to planned moderation in group business. Renewal premium increased by 18% to ₹1,978 crore, and net VNB margin improved by 109 bps to 7.5%.

Health Insurance (Aditya Birla Health Insurance)

Aditya Birla Health Insurance reported gross written premium (GWP) of ₹1,357 crore, representing a 30% year-on-year increase, with retail GWP increasing 39% year-on-year to ₹768 crore. The combined ratio improved to 111% from 112%, and net loss decreased to ₹36 crore compared to a loss of ₹51 crore in the previous year.

Digital and Strategic Developments

The ABCD D2C platform has engaged over 6.4 million customers. Monthly active users of the Activ Health App also grew 79% YoY, and the average user is active for 68 minutes each month. Health programs are now able to track over 30 billion steps!

Management Commentary

“Our strong Q1 performance underscores the resilience of our diversified financial services platform. We continue to scale our digital platforms and deepen customer engagement while maintaining healthy asset quality across lending portfolios,” the management stated during the investor presentation.

About the Company

Aditya Birla Capital Limited (ABCL), a part of the Aditya Birla Group, is a leading financial services conglomerate listed on NSE and BSE. It operates across NBFC, housing finance, life and health insurance, asset management, and other allied services, with a pan-India omnichannel presence. The company’s promoter, Grasim Industries, holds a 52.5% stake.

REF: https://nsearchives.nseindia.com/corporate/rsrai_04082025141438_Investor_presentationsigned.pdf

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