Q4 2025 Aditya Birla Capital Ltd Earnings Call Transcript
Key Points
- Aditya Birla Capital Ltd (NSE:ABCAPITAL) reported a 24% sequential growth in consolidated profit after tax, excluding one-off items, reaching INR 865 crore.
- The company's NBFC business saw a 28% sequential increase in disbursements, with a 20% year-on-year growth in the portfolio.
- The housing finance business achieved a 69% year-on-year growth in AUM, with significant improvements in asset quality.
- The asset management business experienced a 15% year-on-year growth in mutual fund average AUM, with a 19% increase in profit after tax.
- The life insurance business reported a 34% year-on-year growth in individual first-year premium, maintaining a healthy VNB margin of 18%.
- The economic environment remains volatile due to geopolitical tensions and recent tariff measures, posing uncertainty for growth.
- NBFC margins remain under pressure despite growth, with concerns about the sustainability of interest income.
- There is a noted increase in NPAs in the unsecured business loan segment, particularly in government-guaranteed portions.
- The unsecured personal loan segment has seen a decline in share from 17% to 12%, reflecting cautious lending practices.
- The company's reliance on bank borrowings, which are largely linked to MCLR, may delay the benefit of recent rate cuts.
Ladies and gentlemen, good day and welcome to the Q4 FY25 earnings conference call of Aditya Birla Capital Limited. (Operator Instructions) Please note that this call is being recorded.
I now hand the conference over to Ms. Vishakha Mulye, CEO, Aditya Birla Capital. Thank you, and over to you.
Good evening everyone and welcome to the earning call of Aditya Birla Capital for Q4 of FY 2025. Joining me today are senior members of my team, Bala, Rakesh, Pankaj, Kamlesh, Mayank, Pinky, Vijay, Ramesh, and Dheep. I will cover our strategy and business performance, and Vijay will cover key financial highlights, followed by the discussion on performance of our key businesses by our business CEOs.
The economic environment remains volatile due to recent tariff measures and geopolitical tensions in the region which pose uncertainty for growth. During this turbulence, bond yields have softened and crude oil prices have fallen. CPA inflation has cooled significantly, and RPI has reduced
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