Aditya Birla Capital (ABCAP) has released its 2QFY26 consolidated results, showcasing a 4% year-over-year (YoY) increase in revenue to approximately INR124.8 billion. The company’s consolidated profit after tax (PAT), excluding one-off items, grew 3% YoY to around INR8.55 billion. The overall lending book, comprising both non-banking financial companies (NBFC) and housing, exhibited a significant 29% YoY growth and a 7% quarter-over-quarter (QoQ) increase, reaching approximately INR1.78 trillion.
The company’s assets under management (AUM) across its asset management company (AMC), life insurance, and health insurance divisions grew 10% YoY to INR5.5 trillion. Specifically, the mutual fund quarterly average AUM saw an 11% YoY increase to INR4.25 trillion. In the life insurance segment, the individual first-year premium (FYP) grew 19% YoY to INR18.8 billion in the first half of FY26, while the health insurance gross written premium (GWP) expanded 31% YoY to INR28.4 billion during the same period.
Looking ahead, Motilal Oswal’s research report anticipates a consolidated PAT compound annual growth rate (CAGR) of around 25% from FY25 to FY28. This optimism is rooted in the company’s strategic focus on cross-selling, investments in digital technologies, and the leveraging of its ‘One ABC’ platform. These initiatives are expected to drive healthy profitability, resulting in a return on equity (RoE) of approximately 16% by FY28. Based on these projections, the report reiterates a ‘BUY’ recommendation for Aditya Birla Capital, with a sum-of-the-parts (SoTP) based target price of INR380, as of September 2027 estimates.
Investors are advised to consult with certified experts before making any investment decisions, as the views expressed in the report are those of the investment experts and not of the website or its management. Overall, Aditya Birla Capital’s diversified financial services portfolio and strategic initiatives position it for sustained growth and improved profitability in the coming years.