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Informist, Monday, May 4, 2026

 

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--Aditya Birla Cap: Life insurance ops to grow more than 20% next 2-3 yrs 
--Aditya Birla Cap: See 2.10-2.15% return on assets in housing finance FY27 
--Aditya Birla Cap: Expect NII to remain range-bound in FY27 
--Aditya Birla Cap: Expect 2.5% return on assets by FY27-end 
--Aditya Birla Cap: See margin expansion of 25-30 bps in next 3-4 quarters 
--Aditya Birla Cap: Insurance ops to double value of new businees in 2 yrs 
--Aditya Birla Cap: Insurance ops to grow faster than peers going forward 
--Aditya Birla Cap: Plan to open 100 branches in FY27 
--Aditya Birla Cap: Retail, MSME segments to drive NBFC growth in FY27 
--Aditya Birla Cap: Excited about Indian econ despite near-term volatility 
--Aditya Birla Cap: Continue to monitor macros, will intervene as needed 
--CONTEXT: Comments by Aditya Birla Cap mgmt in post-earnings analyst call 
--Aditya Birla Cap: See no impact of West Asia war on our portfolio 
 

 

By Kabir Sharma and Shweta

 

MUMBAI – Aditya Birla Capital Ltd. sees no impact on its portfolio from the war in West Asia, the management said in a call with analysts after the company detailed its earnings for the March quarter on Monday. "We have seen no particular impact from geopolitical tensions in West Asia on our portfolio. However, we continue to be watchful and will calibrate our strategy by closely monitoring the ongoing developments," it said. 

 

The management said it would continue to monitor developments in the macroeconomic environment and would intervene if required by way of strategy recalibration. It said it remains excited about the opportunities that the Indian economy provides despite the near-term volatility. "We saw a strong quality trend across our businesses despite volatile market conditions and uncertainties in the operating environment," it said.

 

The company said its life insurance operations are likely to grow over 20% annually over the next two to three years, supported by improving distribution, product mix and digital capabilities. The management also indicated that the insurance business was poised to outperform peers, with plans to double the value of new business over the next two years. 

 

Executives highlighted that the company is already among the faster-growing players in the insurance segment, aided by strong traction in both proprietary and partnership channels, as well as improving margins and product mix. 

 

On the lending side, the company expects retail and micro, small, and medium segments to remain the key growth drivers for its non-bank financing business in 2026-27 (Apr-Mar). The company also outlined an ambitious distribution expansion strategy, with plans to open around 100 branches in FY27 to deepen its presence across high-potential geographies and improve customer reach. 

 

In housing finance, the management guided for return on assets in the range of 2.10–2.15% for FY27, driven by operating efficiencies, stable credit costs and improved scale. Over the medium term, the company aims to sustain a strong profitability trajectory as its loan book expands and productivity gains continue. 

 

At the consolidated level, Aditya Birla Capital expects net interest income to remain largely range-bound in FY27, reflecting a balanced outlook on yields and cost of funds amid evolving market conditions. 

 

However, profitability is expected to improve gradually. The management said margins are likely to expand by 25–30 basis points over the next three to four quarters, supported by a favourable product mix shift, particularly towards higher-yielding segments such as unsecured and consumer lending. This margin expansion, along with steady asset quality and controlled credit costs, is expected to drive overall return ratios higher. The company has set a target of achieving around 2.5% return on assets by the end of FY27.

 

Executives noted that while credit costs may normalise slightly from historically low levels as unsecured lending grows, they are expected to remain within a managable range, supported by the company's largely secured loan book and prudent risk management practices.  

 

The company reported a consolidated net profit of INR 11.29 billion for the March quarter, up nearly 31% on year and over 19% on quarter. The consolidated revenue was INR 134.59 billion, up over 10% on year and nearly 13% on quarter. Shares of the company ended at INR 345.85 apiece on the National Stock Exchange on Monday, marginally higher than in the previous session.  End

 

Edited by Avishek Dutta

 

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