Aditya Birla Capital Limited (ABCL) has announced strong financial results for the first quarter, demonstrating resilient growth across its diverse portfolio of financial services.

Financial Highlights

The company reported a 10% year-on-year increase in consolidated revenue, reaching ₹11,333.00 crore for Q1. This growth was matched by a 10% rise in consolidated profit after tax, which stood at ₹835.00 crore. The company's operating profit showed even stronger growth, increasing by 13% year-on-year to ₹1,406.00 crore.

Lending Portfolio Expansion

ABCL's overall lending portfolio, comprising both NBFC and Housing Finance Company (HFC) businesses, exhibited robust growth:

• Total lending portfolio grew by 30% year-on-year and 5% sequentially, reaching ₹1,65,832.00 crore as of June 30.
• The NBFC business saw its Assets Under Management (AUM) increase by 22% year-on-year to ₹1,31,227.00 crore.
• The Housing Finance business reported a significant 70% year-on-year growth in AUM, reaching ₹34,605.00 crore.

Asset Management and Insurance Performance

The company's asset management and insurance segments also delivered strong results:

• Total Assets Under Management (AUM) across AMC, life insurance, and health insurance grew by 20% year-on-year to ₹5,53,504.00 crore.
• The life insurance business reported a 23% year-on-year growth in individual first-year premium, reaching ₹795.00 crore.
• Health insurance gross written premium increased by 30% year-on-year to ₹1,357.00 crore.

Digital Initiatives and Market Expansion

ABCL continues to focus on digital transformation and market expansion:

• The company's D2C platform, ABCD, has acquired approximately 6.4 million customers to date, offering over 25 products and services.
• Udyog Plus, the B2B platform for MSMEs, has registered more than 2.4 million users and achieved an AUM of ₹3,658.00 crore.
• ABCL expanded its physical presence by adding 67 new branches, bringing the total branch count to 1,690 across all businesses.

Segment-wise Performance

NBFC Business

• Disbursements grew by 18% year-on-year to ₹15,851.00 crore.
• Profit before tax increased by 11% year-on-year to ₹925.00 crore.
• Return on assets stood at 2.25%.
• Gross stage 2 and 3 ratio improved by 75 bps year-on-year to 3.70%.

Housing Finance Business

• Disbursements surged by 76% year-on-year to ₹5,404.00 crore.
• Profit before tax grew by 82% year-on-year to ₹154.00 crore.
• Return on assets improved to 1.59%, while return on equity reached 12.27%.

Asset Management Business

• Mutual fund quarterly average AUM grew by 14% year-on-year to ₹4,03,479.00 crore.
• Operating profit increased by 21% year-on-year to ₹254.00 crore.

Life Insurance Business

• Individual First Year Premium grew by 23% year-on-year to ₹795.00 crore.
• Market share in individual FYP increased by 60 bps year-on-year to 5.1%.
• Net value of new business margin improved to 7.5%.

Health Insurance Business

• Gross written premium grew by 30% year-on-year to ₹1,357.00 crore.
• Standalone health insurer market share increased by 200 bps year-on-year to 14.5%.
• Combined ratio improved to 111% from 112% in the previous year's Q1.

Aditya Birla Capital's strong performance across its diverse business segments underscores the company's resilience and strategic focus on growth. The significant expansion in lending portfolio, coupled with robust growth in asset management and insurance businesses, positions ABCL well for continued success in the evolving financial services landscape.

Aditya Birla Capital Limited (ABCL) has successfully raised Rs. 1,300 crore through the allotment of Non-Convertible Debentures (NCDs) via private placement. The company made this significant move on July 31, 2025, demonstrating its strong position in the debt market.

Debenture Details

The NCD allotment comprises two distinct tranches:

Tranche 1

• Number of NCDs: 1,00,000
• Total Value: Rs. 1,000 crore
• Coupon Rate: 7.30% per annum
• Maturity Date: September 15, 2028
• Tenor: 1,142 days

Tranche 2

• Number of NCDs: 30,000
• Total Value: Rs. 300 crore
• Coupon Rate: 7.42% per annum
• Maturity Date: July 31, 2030
• Tenor: 1,826 days

Both tranches of debentures have a face value of Rs. 1,00,000 each and are secured, rated, and listed on the BSE Limited and National Stock Exchange of India Limited.

Security and Listing

The debentures are secured through hypothecation, providing a first pari passu charge in favor of the Debenture Trustee over the company's receivables, securities, future moveable assets, and current assets. This security structure enhances the attractiveness of the NCDs to potential investors.

Coupon Payment Schedule

For the first tranche maturing in 2028, ABCL will make annual coupon payments on September 15th each year until maturity. The second tranche, maturing in 2030, will have annual coupon payments on July 31st.

Significance of the Issuance

This substantial NCD issuance by Aditya Birla Capital Limited underscores the company's ability to attract significant capital through debt instruments. The successful private placement to multiple investors indicates strong investor confidence in ABCL's financial stability and growth prospects.

The funds raised through this NCD issuance are likely to strengthen ABCL's capital base, potentially supporting its various financial service operations and strategic initiatives. As one of India's leading diversified financial services groups, this move by Aditya Birla Capital Limited could have positive implications for its market position and future growth strategies.

Investors and market watchers will be keen to observe how ABCL utilizes these funds and the impact on its financial performance in the coming quarters.