Aditya Birla Capital Q2 net profit up 42% to Rs 1,001 crore, stock jumps 5%; AUM expansion, insurance gains help

Aditya Birla Capital Q2 FY25 Results

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Aditya Birla Capital Ltd (ABCL) reported a strong 42 percent on-year gain in consolidated net profit for Q2 FY25, reaching Rs 1,001 crore, boosted by robust growth across its lending and insurance portfolios. Revenue for the quarter grew 36 percent on-year to Rs 12,007 crore, it said in a stock exchange filing on Wednesday.

Aditya Birla Capital share price jumped as much as 5 percent after the strong earnings, with the stock trading at Rs 215 on NSE. It has gained about 25 percent in the last one year, taking the firm's market capitalisation to about Rs 56,000 crore.

The company’s consolidated lending portfolio, comprising its NBFC and housing finance segments, rose 27 percent on-year to Rs 1.38 lakh crore as of September 30. The firm's NBFC arm saw assets under management (AUM) expand to Rs 1.14 lakh crore, marking a 23 percent rise from a year ago. The housing finance AUM surged 51 percent to Rs 23,236 crore.

In asset management, ABCL’s mutual fund quarterly average AUM increased by 23 percent on-year to Rs 3.83 lakh crore. Across insurance segments, life insurance individual first-year premiums grew 33 percent year-on-year to Rs 1,578 crore in the first half of FY25, and health insurance gross written premiums surged 39 percent to Rs 2,171 crore over the same period.

ABCL’s total AUM, which includes contributions from asset management, life, and health insurance, reached Rs 5.01 lakh crore as of the quarter’s close, up 24 percent from the previous year.

Sequentially, Aditya Birla Capital's consolidated net profit rose by 32 percent, with gains from the recent sale of ABCL’s entire 50 percent stake in Aditya Birla Insurance Brokers Ltd, which contributed Rs 167 crore.

In Q2 FY25, ABCL’s NBFC business achieved a 17 percent on-year increase in disbursements to Rs 19,322 crore, while AUM rose by 23 percent to Rs 1.14 lakh crore, with retail, SME, and HNI loans comprising 65 percent of the portfolio. Credit costs fell by 18 basis points sequentially, and the gross stage 2 and 3 ratio improved to 4.24 percent.

The housing finance division saw disbursements surge 113 percent to Rs 4,010 crore, raising AUM by 51 percent to Rs 23,236 crore. In asset management, quarterly average AUM grew 23 percent on-year to Rs 3.83 lakh crore, and monthly SIP flows reached Rs 1,425 crore, a 47 percent increase.

For life insurance, first-year premiums in H1 FY25 rose 33 percent to Rs 1,578 crore, and group premiums grew by 45 percent, with 13th-month policy persistency at 88 percent. In health insurance, premiums climbed 39 percent to Rs 2,171 crore, and the company’s market share among standalone health insurers increased by 123 basis points to 11.9 percent.