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Informist, Thursday, Jul. 30, 2026

By Kabir Sharma

MUMBAI – Aditya Birla Capital Ltd. is expected to report steady growth for the June quarter, with analysts forecasting healthy expansion in its lending business, stable margins and resilient asset quality despite a sequential moderation in earnings. Strong retail credit demand, easing funding pressures and lower credit costs are expected to support the diversified financial services company's performance.

According to a consensus of four brokerages, the company is expected to post net interest income of INR 21.58 billion, up 5.8% from a year ago but down 10.7% sequentially. The net profit is estimated at INR 8.74 billion, reflecting a 4.7% year-on-year increase but a 21.7% decline from the March quarter. For the March quarter, the net profit for the company's NBFC business was INR 8.25 billion, up nearly 27% on year and nearly 7% on quarter.

The highest estimate for net interest income is INR 23.45 billion from ICICI Securities Ltd., while the lowest is INR 20.09 billion from JM Financial Institutional Securities Pvt. Ltd. For the net profit, the highest estimate is INR 9.58 billion from Nuvama Wealth Management Ltd., and the lowest is INR 8.34 billion from Kotak Securities Ltd. 

Kotak Securities expects Aditya Birla Capital's standalone assets under management to rise about 29% from a year earlier and 6% sequentially during the quarter. The brokerage expects spreads to remain broadly stable at around 4%, while the cost-to-average assets under management ratio may edge up to 1.8%. Credit costs are likely to remain contained at around 1.1%, broadly in line with recent quarters, indicating stable asset quality. The company's NBFC operations AUM was up 27% on year at INR 1.60 trillion as of March-end. 

Brokerages remain positive on the broader non-bank finance sector, citing sustained retail credit demand despite disruptions caused by the West Asia conflict earlier in the quarter. Improving liquidity conditions, a decline in government bond yields and stable delinquencies are expected to help lenders defend margins and maintain earnings momentum. 

JM Financial expects diversified non-bank finance companies to benefit from continued retail expansion and moderating credit costs, projecting around 28% year-on-year growth in Aditya Birla Capital's assets under management. Kotak Securities also expects the company to report about 29% loan growth from a year earlier, supported by robust demand across retail lending segments and stable asset quality. 

Investors are likely to focus on the management's comments regarding loan growth, funding costs, net interest margins and asset quality, as easing liquidity conditions and stable credit costs are expected to support stronger earnings through the remainder of the financial year.

All six reports on the company available with Informist have a "buy" rating on the stock at an average target price of INR 405 per share. This is just over 2% higher than the current market price of INR 397.60 as on Wednesday. 

Following are the June quarter earnings estimates for Aditya Birla Capital from four brokerages in descending order of the estimate of net profit in INR billion:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Himanshi Gupta

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