Aditya Birla Capital Ltd. Q2 FY27 profit rises 38% on lending

Aditya Birla Capital Ltd. reported consolidated profit after tax of Rs 1,288 crore for Q2 FY27, up 38% year on year, as lending and housing finance lifted business profitability. Consolidated revenue increased 31% to Rs 16,545 crore, while asset management and health insurance recorded lower business profitability.

What drove Aditya Birla Capital’s Q2 FY27 profit growth?

Aditya Birla Capital’s Q2 FY27 profit growth came mainly from lending and housing finance. Business profitability in lending excluding the housing finance company rose to Rs 1,352 crore from Rs 956 crore in Q2 FY26, an increase of Rs 396 crore. Housing-finance business profitability rose by Rs 141 crore to Rs 335 crore from Rs 194 crore.

The combined Rs 537 crore increase in those two lending businesses was larger than the Rs 493 crore rise in aggregate profit before tax, which reached Rs 2,046 crore. Asset-management business profitability fell by Rs 20 crore to Rs 296 crore, while health-insurance business profitability fell by Rs 78 crore to Rs 27 crore. Life-insurance business profitability increased by Rs 18 crore to Rs 85 crore.

Consolidated revenue rose to Rs 16,545 crore in Q2 FY27 from Rs 12,598 crore in Q2 FY26 and Rs 12,007 crore in Q2 FY25. Consolidated profit after tax rose from Rs 934 crore a year earlier and Rs 834 crore two years earlier. The presentation defines revenue as consolidated segment revenue; for Indian Accounting Standards, or Ind AS, reporting, asset management, wellness and health insurance are included through equity accounting rather than consolidation.

How did Aditya Birla Capital’s lending businesses perform?

Aditya Birla Capital’s non-banking financial company, or NBFC, lending assets under management, or AUM, reached Rs 1,76,557 crore as of September 30, 2026. That was 26% higher year on year and 5% higher quarter on quarter. Its Q2 FY27 profit after tax was Rs 1,008 crore, up 41% year on year, and return on assets was 2.45%.

The NBFC’s gross stage 2 plus gross stage 3 credit-quality ratio was 2.31% at September 30, 2026. The ratio declined by 72 basis points year on year and by 12 basis points quarter on quarter. In Aditya Birla Capital’s standalone profit and loss statement, net interest income rose 23% year on year to Rs 2,475 crore in Q2 FY27.

Housing-finance lending AUM grew faster than the NBFC book, reaching Rs 57,373 crore at September 30, 2026. It increased 50% year on year and 11% quarter on quarter, while Q2 FY27 profit after tax rose 73% year on year to Rs 260 crore. Its return on assets was 2.12%, and its gross stage 2 plus gross stage 3 ratio was 0.65%, down 45 basis points year on year.

The NBFC and housing-finance businesses together had a Rs 2,33,930 crore lending portfolio, up 32% year on year and 7% quarter on quarter. The housing-finance operation had the higher AUM growth rate, at 50% against 26% for the NBFC, and the higher profit growth rate, at 73% against 41%. Its portfolio remained smaller than the NBFC’s Rs 1,76,557 crore AUM.

Why did asset management and health insurance report lower profit?

Aditya Birla Capital’s presentation reports lower profit at asset management and health insurance, but does not specify the causes. Asset-management business profitability fell 6% year on year to Rs 296 crore in Q2 FY27, while the operating measure reported for that segment showed profit after tax of Rs 221 crore, down 8% year on year.

The decline occurred despite a 5% increase in asset-management operating revenue to Rs 484 crore. Domestic quarterly average assets under management, or QAAUM, rose 4% year on year to Rs 4,41,787 crore, including equity QAAUM of Rs 2,09,230 crore, up 9%. Individual monthly average assets under management were Rs 2,17,740 crore in September 2026, up 5% year on year.

Health-insurance business profitability fell 74% year on year to Rs 27 crore in Q2 FY27 from Rs 105 crore. In H1 FY27, gross premium grew 48% year on year and market share among standalone health-insurance players reached 14.2%, up 70 basis points. The combined ratio was 107%, and the presentation does not provide a further explanation for the profit change.

Life insurance produced the opposite profit movement, although its Rs 85 crore business profitability was below the lending businesses’ reported amounts. Life-insurance business profitability rose 27% year on year from Rs 67 crore. In H1 FY27, individual first-year premium rose 25% year on year and net value of new business margin increased 447 basis points to 16.1%.

What changed in Aditya Birla Capital’s standalone finances?

Aditya Birla Capital’s standalone profit after tax rose 35% year on year to Rs 1,237 crore in Q2 FY27. Total income increased 24% to Rs 5,211 crore, compared with Rs 4,213 crore in Q2 FY26, while profit before tax increased 35% to Rs 1,660 crore. Provisions declined to Rs 359 crore from Rs 379 crore despite total expenses rising 11% to Rs 786 crore.

Standalone loans increased by Rs 8,640 crore between June 2026 and September 2026 to Rs 1,65,729 crore. Total assets rose by Rs 9,977 crore to Rs 1,90,321 crore, while borrowings and debt securities increased by Rs 7,604 crore to Rs 1,50,402 crore. Net worth rose from Rs 33,700 crore to Rs 35,182 crore over the same period.

The standalone debt-to-equity ratio increased to 4.28 in September 2026 from 4.24 in June 2026. The Tier 1 ratio moved to 15.63% from 15.95%, while total capital-to-risk-weighted-assets ratio declined to 18.76% from 18.82%. Return on equity was 15.9% in Q2 FY27, compared with 16.2% in Q1 FY27 and 14.2% in Q2 FY26.

Conclusion

Aditya Birla Capital’s consolidated profit increase in Q2 FY27 was principally a lending result: lending excluding housing finance and housing finance added Rs 537 crore of business profitability year on year. That rise outweighed declines of Rs 20 crore in asset management and Rs 78 crore in health insurance, while consolidated profit after tax increased by Rs 354 crore.

The next disclosures will show whether the Rs 2,33,930 crore lending portfolio can maintain its 32% year-on-year growth alongside the NBFC’s 2.31% and housing-finance operation’s 0.65% gross stage 2 plus gross stage 3 ratios. They should also clarify whether health insurance’s 107% combined ratio and the asset-management profit decline continue as premium and QAAUM expand.