Aditya Birla Capital LimitedQ2 FY27 Results & Financial Update
Aditya Birla Capital Limited: Q2 FY27 standalone results and company financials – revenue ₹5,493.40 Cr, PAT ₹1,237.23 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarter overview
Quarterly earnings analysis
For the quarter ended September 30, 2026 (Q2 FY27), Aditya Birla Capital reported standalone revenue of INR 5,493.40 crore and total income of INR 5,541.46 crore, underpinned by strong interest income of INR 4,883.86 crore.
Standalone profit before tax (PBT) for Q2 FY27 reached INR 1,660.04 crore, while net profit after tax (PAT) stood at INR 1,237.23 crore, translating to basic and diluted earnings per share (EPS) of INR 4.52.
On a consolidated basis, company disclosures show consolidated segment revenue expanding to INR 16,545 crore, representing a 31% year-on-year increase, and consolidated profit after tax rising 38% year-on-year to INR 1,288 crore.
The core lending business maintained robust expansion, with the total consolidated lending portfolio reaching INR 2,33,930 crore, growing 32% year-on-year and 7% sequentially, driven by broad-based demand across retail, SME, and corporate segments.
Asset quality metrics across the lending verticals remained healthy, supported by stringent risk management, disciplined underwriting through automated platforms, and stable provision coverage ratios.
Operating efficiencies improved during the quarter as digital platforms and automated verification workflows streamlined turnaround times and helped control cost ratios across operating subsidiaries.
The company continued to scale its specialized subsidiaries, including housing finance, asset management, life insurance, and health insurance, reinforcing its market position across major financial product categories.
01 · Business model
What does Aditya Birla Capital do?
Aditya Birla Capital Limited operates as a leading diversified financial services conglomerate, offering comprehensive lending, housing finance, asset management, life insurance, health insurance, and broking services across India.
The standalone entity primarily functions as a core investment institution (NBFC-ICC), holding strategic investments and generating revenue through interest income, fees, and dividend distributions from its operating subsidiaries and joint ventures.
The broader group serves millions of customers through an extensive omnichannel architecture combining physical branches, co-located service centers, direct digital platforms, and robust partnerships with banks and intermediaries.
Management focuses heavily on scalable digital adoption, artificial intelligence-led underwriting, and cross-selling financial solutions across the Aditya Birla Group ecosystem to sustain high operating momentum.
02 · Historical context
What shaped the business before this quarter
Aditya Birla Health Insurance adopted IFRS effective April 1, 2026, resulting in restated comparative figures in subsequent reporting periods.
The group progressively expanded its distribution footprint over prior years, establishing over 1,822 branches across businesses and onboarding more than two lakh channel partners by September 2026.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q2 FY27 |
|---|---|
| Total income | ₹5,541.46 Cr |
| Interest income | ₹4,883.86 Cr |
| Other income | ₹48.06 Cr |
| Provisions | ₹117.63 Cr |
| Profit before tax | ₹1,660.04 Cr |
| Profit after tax | ₹1,237.23 Cr |
| EPS | ₹4.52 |
04 · Earnings & margin drivers
What drove earnings and margins
What drove net interest income and earnings
Standalone interest income contributed INR 4,883.86 crore to the quarter's revenue, driven by loan book expansion across core lending and housing finance subsidiaries.
Fee and other income added INR 48.06 crore on a standalone basis, complemented by substantial fee streams generated across consolidated asset management and lending operations.
Standalone financial statements reflected dividend income of INR 331 crore received from subsidiaries, joint ventures, and associates during the quarter.
Standalone other income contributed Rs. 48.06 crore during the quarter.
Standalone results included dividend income of Rs. 331 crore received from subsidiaries and investments.
NIM, spread, funding cost and credit cost
Standalone finance costs were reported at zero due to classification rules, while consolidated borrowing operations maintained an optimized cost of borrowings through diversified funding mixes and long-term AAA-rated facilities.
Depreciation for the standalone entity stood at INR 40.85 crore, with operational efficiency reinforced by increased digital automation and centralized underwriting workflows.
Standalone provisions amounted to INR 117.63 crore, reflecting conservative provisioning policies and stable asset quality across loan portfolios.
Standalone depreciation and amortisation expenses were reported at Rs. 40.85 crore for the quarter.
Standalone provisioning expenses stood at Rs. 117.63 crore for Q2 FY27.
05 · Loan growth, sanctions & disbursements
How the lending book is moving
Retail, SME, and HNI loans in the standalone NBFC reached INR 1,20,171 crore, representing 31% year-on-year growth, bolstered by digital platforms like Udyog Plus for MSMEs.
The D2C omnichannel platform ABCD acquired over 1.32 crore customers to date, providing more than 26 product categories and driving cross-selling synergies.
06 · Portfolio mix & lending exposure
Where the loan book is concentrated
Segments and products
The standalone NBFC business reported lending AUM of INR 1,76,557 crore, up 26% year-on-year, with a standalone PAT of INR 1,008 crore and a return on assets (RoA) of 2.45%.
Aditya Birla Housing Finance achieved an AUM of INR 57,373 crore, reflecting 50% year-on-year growth, and delivered a quarterly PAT of INR 260 crore with an RoA of 2.12%.
Aditya Birla Sun Life AMC reported total mutual fund QAAUM of INR 4,41,787 crore and a quarterly PAT of INR 221 crore, backed by solid equity asset mix and retail SIP inflows.
Life insurance reported an embedded value of INR 17,213 crore with an 18% year-on-year rise, while health insurance gross written premium reached INR 4,543 crore in H1 FY27.
Geography and market mix
Operations span over 4,100 towns and cities across India, supported by 1,822 branch locations across all group businesses and extensive digital touchpoints servicing over 19,000 pin codes.
The group maintains an extensive distribution network spanning thousands of pin codes and co-located branches across urban and semi-urban centers.
07 · Strategy & portfolio evolution
How the lending mix and strategic agenda are changing
The company accelerated its transformation into a frontier AI organization, deploying agentic AI across underwriting, customer service, voice bots, and audit compliance to improve productivity by 30-35%.
Leveraging the Aditya Birla Group (ABG) ecosystem allowed approximately 34% of unsecured business loan sourcing to originate directly from ecosystem partners.
The group continues to scale its ABCD D2C application, Udyog Plus platform for MSMEs, and Stellar B2B distributor platform, embedding AI across underwriting and customer lifecycle management.
08 · Reported developments
What changed operationally
Consolidated profit after tax grew 38% year-on-year to INR 1,288 crore for Q2 FY27, reflecting robust operating performance across core lending and financial subsidiaries.
Standalone gross stage 2 and stage 3 asset ratios improved to 2.31% as of September 30, 2026, marking a 72 basis point reduction year-on-year.
Standalone profit after tax rose to Rs. 1,237.23 crore for the quarter ended September 30, 2026.
09 · Items worth noticing
The line items that can distort a quick read
Standalone tax expense for Q2 FY27 was recorded at INR 422.81 crore against profit before tax of INR 1,660.04 crore.
10 · Funding & balance sheet
How funding, liquidity and capital support the loan book
Capital allocation & funding
Standalone borrowings and debt securities stood at INR 1,50,402 crore as of September 30, 2026, reflecting a debt-to-equity ratio of 4.28.
Long-term borrowing facilities maintained AAA ratings while short-term instruments held A1+ ratings from leading credit rating agencies including CRISIL, ICRA, and India Ratings.
11 · Management guidance & targets
What management is targeting from here
Management stated aspirations to grow individual first year premium (FYP) at a 20%+ CAGR over the next three years while keeping net VNB margins expanding above 20%.
12 · Beyond the numbers
What changed beyond the numbers
Digital Transformation Milestones
The rollout of automated underwriting systems such as AutoCAM for SME lending reduced turnaround times by up to 80% across processing channels.
Omnichannel Expansion
The company expanded its digital and co-located branch network to enhance cross-sell capabilities across its financial services ecosystem.
13 · Previous-quarter changes
What changed since the previous quarter
Standalone loan assets increased from INR 1,57,089 crore in June 2026 to INR 1,65,729 crore in September 2026, representing a 5.5% sequential growth rate.
14 · Key Q&A
The quarter, answered directly
What does Aditya Birla Capital do?
Aditya Birla Capital Limited operates as a leading diversified financial services conglomerate, offering comprehensive lending, housing finance, asset management, life insurance, health insurance, and broking services across India.
What is the clearest takeaway from Q2 FY27?
For the quarter ended September 30, 2026 (Q2 FY27), Aditya Birla Capital reported standalone revenue of INR 5,493.40 crore and total income of INR 5,541.46 crore, underpinned by strong interest income of INR 4,883.86 crore.
What drove earnings or loan-book movement?
Standalone interest income contributed INR 4,883.86 crore to the quarter's revenue, driven by loan book expansion across core lending and housing finance subsidiaries.
What mattered most for margins, funding or credit cost?
Standalone finance costs were reported at zero due to classification rules, while consolidated borrowing operations maintained an optimized cost of borrowings through diversified funding mixes and long-term AAA-rated facilities.
What changed operationally beyond the headline numbers?
The company accelerated its transformation into a frontier AI organization, deploying agentic AI across underwriting, customer service, voice bots, and audit compliance to improve productivity by 30-35%.
What is management guiding or targeting from here?
Management stated aspirations to grow individual first year premium (FYP) at a 20%+ CAGR over the next three years while keeping net VNB margins expanding above 20%.
15 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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16 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Asset Quality Trajectory: Monitor the progression of Stage 2 and Stage 3 loan percentages across retail and SME lending portfolios in subsequent quarters.
- 02
Digital Adoption Metrics: Track the scaling of AI-driven underwriting tools and their impact on operational turnaround times and credit cost ratios.
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