1. Opening Hook
When everyone was busy counting Diwali bonuses, Aditya Birla Capital quietly counted its crores – ₹12,481 crore to be exact. Revenue up 10% sequentially, but profits tiptoed just 3% higher. While the government waived GST on insurance to cheer citizens, ABCL’s management looked more like they’d been served black coffee instead of champagne. The call had more acronyms than a government budget note — NBFC, HFC, AMC, VNB — and each had its own “we’re doing fine, but…” story.
Yet, somewhere between “digital platforms” and “risk-calibrated growth,” the company made it clear — the engine’s running, but they’re watching every gear. Keep reading — the real juice comes when the CFO starts talking about margins and credit costs.
2. At a Glance
- Revenue up 4% YoY, 10% QoQ– Growth magic sprinkled, but the wand’s battery low.
- PAT ₹855 Cr, up 3% YoY– Profit’s on a diet, maybe intermittent fasting.
- NBFC AUM ₹1.4 Trillion, up 22% YoY– Lending spree? More like calculated chaos.
- HFC portfolio ₹38,270 Cr, up 65% YoY– Housing boom, and ABCL’s building fast.
- AMC AUM ₹4.25 Trillion– SIPs and SIPping profits.
- Life Insurance VNB Margin 11.6%– A margin that finally stopped ghosting them.
- Stock steady– Traders yawned, analysts stayed for the Q&A snacks.
3. Management’s Key Commentary
“Our focus is on quality and profitable growth leveraging data, digital and technology.”(Translation: We’re praying the algorithm behaves this quarter.)
“NBFC disbursements grew 39% sequentially to ₹21,990 Cr.”(They’re clearly handing out loans faster than bank coffee vouchers.)
“Asset quality remains strong; GS2+GS3 down to 3.03%.”(Cue the CFO’s silent sigh of relief — this is the good slide.)😌
“Personal loans grew 52% YoY; environment stabilizing.”(Read: The risky stuff hasn’t blown up yet, fingers crossed.)
“Housing Finance AUM up 65% YoY with RoA 1.82%.”(The housing fairy has blessed them with EMIs galore.)
“Life insurance market share at 4.9%, fastest-growing private insurer.”*(Who knew insuring lives could be this lively?) 🫢
“Health Insurance combined ratio at 112%.”(Translation: Still losing money, but we’re healthier about it.)
“Omnichannel architecture reaching 7.6M customers via ABCD app.”(Even the app sounds like a nursery rhyme for fintech.)
4. Numbers Decoded
| Metric | Q2 FY26 | YoY Growth | Commentary |
|---|---|---|---|
| Revenue | ₹12,481 Cr | +4% | A slow burner, but at least it’s burning. |
| PAT | ₹855 Cr | +3% | Barely moved the profit needle. |
| NBFC AUM | ₹1.4 Trn | +22% | Loans flying off shelves like Diwali discounts. |
| HFC AUM | ₹38,270 Cr | +65% | Mortgage marathon continues. |
| NBFC RoA | 2.20% | Flat | CFO clings to this like a trophy. |
| Credit Cost | 1.16% | Stable | Risk team finally gets a holiday. |
| GS2+3 Ratio | 3.03% | -121 bps | “Healthy” never sounded so numerical. |
| AMC AUM | ₹4.25 Trn | +11% | Mutual fund sips stay sticky. |
| Life Insurance VNB Margin | 11.6% | +420 bps | Even IRDA must be smiling. |
| Health GWP | +31% | N/A | Wellness and wallets rising together. |
Bottom line:steady growth, fewer bad loans, and CFO-approved caffeine levels maintained.
5. Analyst Questions (and Management Spin)
Q:“Margins flat despite higher disbursement — why?”A:“One-off opex, sir. We spent on tech and branches.”(Translation: We redecorated, the profits will catch up.)
Q:“Why sell NPA loans with government guarantees?”A:“We aligned ECL policies.”(Because spreadsheets love symmetry.)
Q:“Housing NIMs under pressure?”A:“Competition’s up, but operating leverage will save us.”(The corporate way of saying ‘we’ll squeeze harder.’)
Q:“Can RoA really hit 3%?”A:“We’re confident of 2.4%–2.5%, then we’ll see.”(Translation: 3% is a dream, not guidance.)
Q:“Impact of GST exemption on margins?”A:“Short-term pain, long-term gain.”
