Aditya Birla Capital NBFC AUM rose 26% as Stage 2+3 fell

Aditya Birla Capital Ltd.’s NBFC business reported assets under management (AUM) of Rs 1.76557 lakh crore at September 2026, up 26.5% year on year and 5.4% quarter on quarter. Combined Stage 2 and Stage 3 loans declined to 2.31% from 3.03% a year earlier, while Q2 FY27 profit before tax rose 41.4% to Rs 1,352 crore.

How fast did Aditya Birla Capital’s NBFC AUM grow?

Aditya Birla Capital’s NBFC AUM grew to Rs 1.76557 lakh crore at September 2026 from Rs 1.39585 lakh crore at September 2025. The 26.5% year-on-year increase followed 5.4% growth from Rs 1.67456 lakh crore at June 2026. Retail, small and medium enterprise (SME), and high-net-worth individual loans reached Rs 1.20171 lakh crore, up 31% year on year and 5% quarter on quarter.

Business loans were the largest AUM category, at Rs 1.01119 lakh crore, or 57% of the September 2026 portfolio, compared with Rs 77,532 crore a year earlier. Secured business loans rose 26% to Rs 80,209 crore, while unsecured business loans increased 53% to Rs 20,910 crore. Personal and consumer loans grew 37% to Rs 24,955 crore, faster than corporate and mid-market loans, which grew 15% to Rs 50,483 crore.

Quarterly disbursements rose to Rs 24,708 crore in Q2 FY27 from Rs 21,990 crore in Q2 FY26 and Rs 21,201 crore in Q1 FY27. Secured-business disbursements increased 22% year on year to Rs 9,737 crore, while personal and consumer disbursements rose 18% to Rs 5,877 crore. Corporate and mid-market disbursements were Rs 7,579 crore, unchanged year on year but 29% above Q1 FY27.

What changed in Aditya Birla Capital’s loan mix?

Aditya Birla Capital’s September 2026 AUM comprised 57% business loans, 29% corporate and mid-market loans, and 14% personal and consumer loans. The business-loan allocation included 45% secured business and 12% unsecured business. The company reported that about 71% of its loan book was secured across its product portfolio.

Within secured business lending, loan against property accounted for 58% of the segment at September 2026, compared with 59% a year earlier. Loan against securities increased to 21% from 17%, while term loans and working-capital demand loans declined to 18% from 21%. In unsecured business, business loans rose to 87% of the segment from 85%, while supply-chain finance declined to 13% from 15%.

Personal loans remained 94% of personal and consumer AUM at September 2026, matching the September 2025 share, while consumer loans accounted for 6%. In corporate and mid-market lending, term loans and working-capital demand loans increased to 62% from 57%, while project finance fell to 16% from 19%. Aditya Birla Capital also reported that 42% of AUM was covered under Central Government schemes at September 2026.

Has Aditya Birla Capital’s asset quality improved?

Aditya Birla Capital’s combined Stage 2 and Stage 3 loan ratio declined to 2.31% at September 2026, from 3.03% at September 2025 and 2.43% at June 2026. The combined balance was Rs 3,879 crore, below Rs 4,073 crore a year earlier, although the financial-statements loan book grew to Rs 1.67685 lakh crore from Rs 1.34409 lakh crore.

Stage 2 loans declined to 1.03%, or Rs 1,731 crore, at September 2026 from 1.35%, or Rs 1,812 crore, a year earlier. Stage 3 loans fell to 1.28%, or Rs 2,148 crore, from 1.68%, or Rs 2,261 crore. Stage 1 loans consequently increased to 97.69% of the loan book, or Rs 1.63805 lakh crore, from 96.97% at September 2025.

Asset-quality changes varied by segment. Unsecured business recorded Stage 2 loans of 0.7% and Stage 3 loans of 1.0%, compared with 1.5% and 1.9%, respectively, a year earlier. Personal and consumer Stage 2 declined to 1.0% from 1.6%, while Stage 3 was unchanged at 1.3%. Corporate and mid-market Stage 3 declined to 1.6% from 2.1%, although Stage 2 increased to 0.1% from zero.

The Stage 3 provision coverage ratio (PCR) was 48.4% at September 2026, compared with 44.2% a year earlier and 48.2% at June 2026. Personal and consumer Stage 3 PCR was 78.6%, down from 81.9% in the previous quarter but above 66.4% a year earlier. Aditya Birla Capital said 46% of its unsecured-business Stage 3 book was covered by government guarantee schemes; excluding this coverage, unsecured-business Stage 3 was 0.6%.

How did Aditya Birla Capital’s earnings and funding position change?

Aditya Birla Capital reported net interest income, including fee income, of Rs 2,488 crore in Q2 FY27, up 24.7% year on year and 4.6% quarter on quarter. Profit before tax increased to Rs 1,352 crore from Rs 956 crore in Q2 FY26 and Rs 1,222 crore in Q1 FY27. Profit after tax was Rs 1,008 crore, compared with Rs 714 crore a year earlier and Rs 927 crore in the preceding quarter.

Return on assets was 2.45% in Q2 FY27, compared with 2.20% in Q2 FY26 and 2.39% in Q1 FY27. Net interest margin, including fee income, was 6.00%, versus 6.06% a year earlier and 6.07% in the previous quarter. Credit provisioning was Rs 378 crore, marginally below Rs 379 crore in Q2 FY26, while credit provision as a share of the average lending book declined to 0.92% from 1.16%.

Aditya Birla Capital raised Rs 10,077 crore in long-term borrowings in Q2 FY27 after raising Rs 9,280 crore in Q1 FY27. Cumulative inflows exceeded cumulative outflows in every maturity band shown, including 8% inflows against 5% outflows in the zero-to-one-month band and 45% against 34% in the six-month-to-one-year band. Term loans represented 39% of funding at September 2026, down from 42% a year earlier, while non-convertible debentures increased to 35% from 34%.

Conclusion

Aditya Birla Capital paired 26.5% year-on-year AUM growth with a decline in combined Stage 2 and Stage 3 loans to 2.31% by September 2026. The increase in lending was led by unsecured business, personal and consumer, and secured-business portfolios, while Q2 FY27 profit before tax rose 41.4% and return on assets reached 2.45%.

The next disclosure will indicate whether Q2 FY27 disbursement growth of 17% quarter on quarter continues to translate into AUM growth while maintaining the September 2026 asset-quality trend. It will also show whether long-term borrowing of Rs 10,077 crore and the funding mix support lending growth alongside the 6.00% net interest margin.