Aditya Birla Capital reported a 38% year-on-year rise in Q2 FY27 profit to ₹1,288 crore, fueled by strong growth across lending segments. The company’s revenue increased by 31% to ₹16,545 crore, with the NBFC division achieving a key profit milestone. Investors are now focusing on the company's asset quality and margin sustainability as it continues to expand its retail loan book.
Aditya Birla Capital has posted a strong financial performance for the second quarter of the 2027 fiscal year, reflecting broad-based growth across its lending businesses. The company reported a consolidated net profit of ₹1,288 crore, a 38% increase compared to the same period last year. Consolidated revenue for the quarter stood at ₹16,545 crore, marking a 31% year-on-year growth. This performance indicates sustained momentum in the company’s core financial services platform.
A significant highlight of the quarter was the performance of the NBFC segment, which crossed the ₹1,000 crore profit milestone for the first time, reaching ₹1,008 crore. The company's total assets under management expanded by 32% year-on-year to ₹2,33,930 crore. This growth was driven by robust demand in the retail and micro, small, and medium enterprise lending spaces. The housing finance arm also contributed to the expansion, supporting the overall rise in the company’s loan book.
Asset quality remained a key area of focus for the management. The company reported credit costs at 92 basis points, while gross stage 2 and stage 3 assets were recorded at 2.31%. Maintaining these metrics will be essential as the company continues to scale its operations. The management remains focused on managing its cost of funds to protect net interest margins, which have been a subject of attention for investors given the shifting interest rate environment.
Looking ahead, investors are tracking how the company balances its aggressive growth targets with risk management. While the company has demonstrated an ability to maintain profitability, the sustainability of margins will depend on how it manages incremental funding costs versus lending rates in the coming quarters. The company's ability to maintain its asset quality amid the ongoing expansion of its retail and MSME loan portfolio will be a primary indicator of its operational health. Investors may also continue to monitor any updates regarding capital adequacy and regulatory compliance, which are standard for non-banking financial entities in the current market.