Aditya Birla Cap Q1 FY27 Results (NSE: ABCAPITAL)
Signal: Earnings grew
The read
Q1FY27 performance shows broad-based growth across lending, insurance, and asset management. Asset quality improved (NBFC GS3 1.30% vs 2.27% YoY; HFC GS3 0.41% vs 0.63% YoY). Life insurance VNB margin jump is a key quality indicator. Statutory revenue growth of 28% YoY and PAT growth of 40% confirm momentum. Sequential decline vs Q4FY26 is seasonal; underlying loan book grew 6% QoQ.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹12,179.54 Cr | 28.2% | -73.2% |
| EBIT | ₹4,884.82 Cr | 28.3% | |
| Net profit | ₹1,174.7 Cr | 40.7% | |
| EPS | ₹4.46 | 39.4% | |
| EBIT margin | 40.1% |
P&L walk
Revenue growth of 28.2% YoY driven by strong lending expansion; EBITDA margin stable ~40.8%; finance cost rose with borrowing growth; PAT grew 40.7% YoY, outpacing EBIT growth due to lower effective tax?
Segments
NBFC and HFC drove profit growth: NBFC PBT +32% YoY, HFC PBT +95% YoY. Life insurance VNB margin expanded 756 bps to 15.1%; health insurance GWP +50% YoY. AMC PAT grew modestly +12% YoY.
Key positives
- Consolidated PAT ₹1,175 Cr, +40% YoY.
- Lending portfolio (NBFC + HFC) ₹2,19,289 Cr, +32% YoY and +6% QoQ.
- HFC AUM crossed ₹50,000 Cr, growing 50% YoY; HFC PBT nearly doubled (+95% YoY).
- Life insurance VNB margin improved 756 bps YoY to 15.1%, absolute VNB +153% YoY.
- Gross stage 3 ratios improved: NBFC 1.30% (down 97 bps YoY), HFC 0.41% (down 22 bps YoY).
- Raised ₹4,000 Cr growth capital from Promoters and IFC via preferential allotment.
Research and educational content only. Not investment advice.