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Informist, Sunday, Feb. 1, 2026

   

By Shruti Nair

 

MUMBAI - Aditya Birla Capital Ltd. is likely to report a double-digit on-year growth in bottom line for the December quarter due to an expected increase in the company's assets under management and improvement in net interest margin, according to brokerages. The company's net interest income is expected to rise modestly on quarter.

 

Brokerages have provided estimates specifically for the company's diversified non-banking finance arm. The diversified lender is expected to report a bottom line of INR 7.64 billion for the December quarter, up over 27% on year. The highest estimate for net profit is INR 7.69 billion by Mirae Asset Sharekhan Ltd., while the lowest estimate is INR 7.52 billion by JM Financial Institutional Securities Pvt. Ltd. Sequentially, the bottom line is expected to decline nearly 7%.

 

The lender's net interest income is estimated at INR 21.79 billion, up over 9% on quarter. On year, the net interest income is expected to increase nearly 26%. The highest estimate for net interest income is INR 23.44 billion by ICICI Securities Ltd. and the lowest is INR 19.17 billion by JM Financial.

 

The company's net interest margin is expected to increase 6-53 basis points on year from 6% in the same quarter last year. Sequentially, the net interest margin is expected to rise 2-21 bps. The highest on-year increase is expected by ICICI Securities, while the highest sequential increase is seen by JM Financial, which are the only two estimates available for the metric. "Margins are likely to improve supported by increase in disbursement growth and slight moderation in COF (cost of funds)," JM Financial said about the diversified non-banking finance sector.

 

The company's assets under management are pegged at INR 1.48 trillion, up 6% on quarter, according to estimates from two brokerages. On year, the increase would be around 24%.

 

The company's provisions are seen at INR 4.02 million, up nearly 6% on quarter, according ICICI Securities, the only broking firm to provide an estimate. The provisions are seen up 4% from INR 3.88 billion in the year-ago quarter.

 

Brokerages are divided on the company's credit costs. ICICI Securities sees credit costs flat on quarter while JM Financial sees an increase of 13 bps from 1.10% in the September quarter. However, the credit costs are expected to fall 8-21 bps from 1.30% in the year-ago quarter, thereby improving the company's bottom line on year.

 

All the five brokerage reports on the company available with Informist have a 'buy' or equivalent recommendation on the stock with an average target price of INR 368. This is over 8% higher than the current market price. The company is scheduled to release its December quarter results Tuesday.

 

The stock is up over 1% since the company reported its September quarter earnings. At 1446 IST, shares of the company were at INR 329.80 on the National Stock Exchange, down nearly 3% from Friday.

 

Following are the Oct-Dec earnings estimates for Aditya Birla Capital from four brokerages in descending order of the average estimate of net profit in INR billion:

 

Brokerage	Net Interest Income	Net Profit
Mirae Asset Sharekhan Ltd	23.44	7.69
ICICI Securities Ltd	23.44	7.69
Emkay Global Financial Services Ltd	21.10	7.66
JM Financial Institutional Securities Pvt Ltd	19.17	7.52
Average	21.79	7.64

 

End

 

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

 

Edited by Ashish Shirke

 

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