Earnings Review
Strong AUM growth boosts Aditya Birla Cap's Q1 PAT, up 10%
This story was originally published at 17:02 IST on 4 August 2025
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--Aditya Birla Cap Apr-Jun consol PAT INR 8.35 bln
--Aditya Birla Cap Apr-Jun consol PAT INR 8.35 bln vs INR 7.59 bln yr ago
--Aditya Birla Cap Apr-Jun consol revenue INR 95.03 bln vs INR 86.73 bln
MUMBAI – Aditya Birla Capital Ltd.'s net profit for the June quarter rose year-on-year due to a strong growth in assets under management and an increase in total income. However, a sharp rise in finance costs capped the rise in bottom line.
The company posted a 10% on-year rise in consolidated net profit to INR 8.35 billion in Apr-Jun from INR 7.59 billion in the corresponding quarter last year. However, the net profit declined nearly 3.4% sequentially. On Monday, shares of the non-banking financial company ended over 10% higher at INR 278.45 on the National Stock Exchange.
The company's assets under management rose 20% on year to INR 5.54 trillion as of Jun. 30. The company's total income rose 9.3% on year to INR 95.31 billion. However, it fell nearly 22% on sequential basis.
In Apr-Jun, fee and commission income of the company rose to INR 1.91 billion from INR 1.79 billion in the corresponding quarter last year. However, it fell nearly 7% on quarter. The net fair value gains were at INR 1.08 billion, down from INR 1.21 billion a year ago. It was nearly 58% down on sequential basis, which weighed on the income of the company.
On the company's expenditure front, total expenses rose 9% on year to INR 84.60 billion. However, there was a noteworthy fall in total expense of the company on sequential basis, down nearly 24%. Of the total expense, the company's finance cost surged nearly 22% on year to INR 27.36 billion. Fee and commission expense rose to INR 166.2 million from INR 119.5 million in Jan-Mar.
As of Jan. 30, the company's overall lending book rose 30% on year and 5% on quarter to INR 1.66 trillion. This includes lending by subsidiaries Aditya Birla Finance Ltd. and Aditya Birla Housing Finance Ltd. Of this, the non-banking finance company contributed nearly INR 1.31 trillion and INR 346.05 billion was contributed by the company's housing finance arm.
The company's diversified businesses showcased robust growth. In the life insurance segment, individual first-year premiums rose 23% on year to INR 7.95 billion as of Jun. 30. Health insurance also saw significant growth, with gross written premiums increasing 30% on year to INR 13.57 billion.
The non-banking finance arm's disbursements were INR 158.51 billion as of Jun. 30, up 18% on year. The housing finance business saw a substantial surge, with disbursements surging 76% on year to INR 54.04 billion, as of Jun. 30. The company expanded its operations, adding 67 new branches during the quarter, bringing the total branch count across all businesses to 1,690 as of Jun. 30. "The branch expansion is targeted at driving penetration into tier-3 and tier-4 towns and new customer segments," the company said in the investor presentation released Monday. End
Edited by Tanima Banerjee
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