Aditya Birla Capital Ltd (NSE:ABCAPITAL)

Q1 2027 Aditya Birla Capital Ltd Earnings Call Transcript

Jul 31, 2026 / 11:00 AM GMT

Release Date Price: ₹404.3 (+2.60%)

Transcript

Key Points

Positve

Consolidated profit after tax surged 40% YoY to INR 1,175 crore, with total revenue up 29% YoY.
NBFC business delivered strong growth with PAT up 35% YoY and ROA expanding 14 bps to 2.39%.
Housing finance portfolio crossed INR 50,000 crore milestone, growing 50% YoY, with PBT nearly doubling.
Asset quality remained robust with GS2+GS3 at 2.4% (down 127 bps YoY) and provision cover improved to 48.2%.
Life insurance VNB margin nearly doubled to 2.1% driven by non-par, protection, and annuity mix.
Health insurance turned profitable in Q1 with INR 184 crore profit versus a loss last year, and combined ratio at 106%.
Raised INR 4,000 crore growth capital from promoter and IFC to support future expansion.
AMC business saw strong fund performance with ~75% of AUM in top two quartiles.
Gold loan business launch planned in Q2 with 200-300 branches by March 2027, diversifying product suite.
AI and digital initiatives improved productivity, with 71% of contact center interactions and 74% of health claims processed straight-through.

Negative

Higher input and energy costs create uncertainty in the growth outlook.
NBFC net interest margin (including fees) declined slightly to 6.07% due to lower fee income.
Personal and consumer loan yields fell to 16.2% from 16.5% four quarters ago, pressuring margins.
Housing finance ROE currently at 11.29% is below the 15% target, expected to recover only in 2-3 quarters.
OpEx-to-AUM ratio for housing finance is expected to rise to 2.1-2.2% this year due to branch expansion.
Unsecured business loan portfolio has a gross stage 3 of 1.1%, with 40% covered under government guarantee, indicating some risk.
Corporate segment growth slowed to 16% YoY, with its share of portfolio declining to 29%.
Life insurance proprietary business growth was only 7% YoY, lagging the partnership channel's 25% growth.
Health insurance combined ratio at 106% is still above 100%, though improving.
Potential regulatory changes on insurance payouts could pose a risk to fee income.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

ADTB.NS - Aditya Birla Capital Ltd
Q1 2027 Aditya Birla Capital Ltd Earnings Call
Jul 31, 2026 / 11:00AM GMT

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Presentation
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And

Ladies and gentlemen, good day and welcome to the Q1 F27 conference call of Aditya Birla Capital Limited.

As a reminder, all participants less mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during the conference call, please signal an operator by pressing, then 0 on your touchstone phone.

Please note this call is being recorded.

I know and I can go to Miss Vishaka and D and CEO Adiabla Capital Limited, thank you and note to you, ma'am.

Thank you, good evening everyone, and welcome to the earning call of Ala capital for Q1 of 2027.

Joining me today are my senior members of my

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