Aditya Birla Capital (ABCAP) posted consolidated revenue of about ₹147 billion in Q1FY27, up 29% from the same period last year. Profit after tax rose by roughly 40% to ₹11.8 billion, reflecting stronger earnings across the group.
The company's total lending book, which includes non‑bank finance and housing finance, grew 32% year‑on‑year and 6% quarter‑on‑quarter to reach ₹2.19 trillion. This growth supports the firm’s expanding credit portfolio.
Assets under management across asset management, life insurance, and health insurance rose 36% YoY to ₹7.53 trillion. Mutual fund AUM increased 6% YoY to ₹4.28 trillion.
Life insurance individual policy sales grew about 20% YoY to ₹9.52 billion, while health insurance gross written premium surged 50% YoY to ₹22 billion, indicating robust demand in both segments.
ABCAP successfully raised equity growth capital of ₹40 billion through a preferential allotment involving promoters and the International Finance Corporation. This capital infusion strengthens the balance sheet.
Motilal Oswal expects a consolidated PAT compound annual growth rate of around 28% for FY26‑28. The firm believes that cross‑selling initiatives, digital investments, and the ‘One ABC’ platform will drive profitability.
The research team reiterates a BUY rating, forecasting a return on equity of about 14% by FY28E. They set a target price of ₹480 based on a March 2028 earnings estimate.