AB Capital Q3 CONS PAT Jumps 33% YoY to Rs 945 Cr, Revenue Up 27%
Aditya Birla Capital has reported impressive growth in the third quarter, driven by the expansion of its lending, insurance, and asset management sectors. This flourishing performance propelled the company’s profits, ever-improving margins, and asset quality.
Financial Highlights for Q3 FY26
– Consolidated Net Profit: The profit after tax (PAT) surged by 33% year-on-year, reaching Rs 945 crore, compared to Rs 708 crore in the same quarter last year. This increase corresponds to profits attributable to the company’s owners.
– Revenue Growth: Revenue from operations soared to Rs 11,952 crore, marking a 27% increase from Rs 9,381 crore in the previous year’s corresponding period.
– Adjusted Profit Figures: Excluding a one-time impact of Rs 38 crore from the new labour code in Q3 FY26 and a residual gain of Rs 9 crore (net of tax) from the sale of ABIBL in Q3 FY25, the consolidated PAT witnessed a remarkable 41% YoY growth, totaling Rs 983 crore.
– Consolidated Revenue: Based on Ind AS statutory reporting, revenue increased by 30% YoY to Rs 14,181 crore. Note that this figure does not include asset management, wellness, or health insurance, as they are accounted for under equity accounting.
– Sequential Growth: The PAT rose by 10% sequentially from Rs 855 crore in Q2 FY26. Additionally, the topline grew by 13% quarter-on-quarter, compared to Rs 10,595 crore in Q2 FY26.
Key Metrics
– Lending Portfolio: The overall lending portfolio, encompassing both NBFC and HFC, grew by 30% YoY and 7% sequentially, reaching Rs 1,90,386 crore as of December 31, 2025.
– Total AUM: Total Assets Under Management (AUM) across AMC, life insurance, and health insurance rose by 19% YoY, amounting to Rs 5,98,166 crore.
– Life and Health Insurance Growth: The individual first-year premium for life insurance increased by 19% YoY to Rs 3,076 crore in 9MFY26, while the health insurance gross written premium surged by 39% YoY to Rs 4,651 crore during the same period.
– Disbursements: Disbursements climbed by 41% YoY to Rs 21,417 crore, with AUM reflecting a 24% YoY and 6% sequential growth, totaling Rs 1,48,182 crore.
– Profit Before Tax (PBT): PBT experienced a 29% YoY and an 8% sequential increase, reaching Rs 1,036 crore. The return on assets (RoA) improved by 15 basis points YoY and 5 basis points sequentially to 2.25%.
– Asset Quality Metrics: The gross stage 2 and 3 ratio improved by 145 basis points YoY and 23 basis points sequentially, dropping to 2.80%.
Fundraising Activities
Aditya Birla Housing Finance has successfully raised Rs 2,750 crore in growth capital from Advent International, achieving a post-money valuation of Rs 19,250 crore. This capital injection aims to sustain growth momentum and enhance market share.
In conclusion, Aditya Birla Capital’s impressive Q3 results highlight a robust financial trajectory. The combined growth in lending, revenue, and profits demonstrates the company’s resilience and effective strategies in navigating the current market landscape. This continuous upward momentum positions Aditya Birla Capital for further success in the forthcoming quarters.