Aditya Birla Capital Q2 FY25 net profit rises 42% YoY to Rs 1,001 cr driven by strong lending and insurance growth

According to a stock exchange filing on Wednesday, the company’s revenue for the quarter rose 36% year-on-year to Rs 12,007 crore, reported Moneycontrol.

As of September 30, ABCL's consolidated lending portfolio, which includes its non-banking financial company (NBFC) and housing finance segments, grew by 27% to Rs 1.38 lakh crore.

The firm's NBFC division saw its assets under management (AUM) expand to Rs 1.14 lakh crore, marking a 23% increase from the previous year, while the housing finance AUM surged by 51% to Rs 23,236 crore.

In the asset management sector, ABCL’s mutual fund average AUM for the quarter increased by 23% year-on-year, reaching Rs 3.83 lakh crore.

In the insurance segments, individual first-year premiums for life insurance rose by 33% year-on-year to Rs 1,578 crore in the first half of FY25, while gross written premiums for health insurance climbed by 39% to Rs 2,171 crore during the same period.

As of the end of the quarter, ABCL's total AUM, encompassing contributions from asset management, life, and health insurance, reached Rs 5.01 lakh crore, reflecting a 24% increase compared to the previous year.

Sequentially, ABCL's consolidated net profit increased by 32%, aided by the recent sale of its entire 50% stake in Aditya Birla Insurance Brokers Ltd, which contributed Rs 167 crore to the profits.

In Q2 FY25, the NBFC business reported a 17% year-on-year rise in disbursements, amounting to Rs 19,322 crore, while AUM grew by 23% to Rs 1.14 lakh crore, with retail, SME, and HNI loans making up 65% of the portfolio.

Credit costs decreased by 18 basis points sequentially, and the gross stage 2 and 3 ratio improved to 4.24%.

The housing finance division experienced a remarkable 113% increase in disbursements, reaching Rs 4,010 crore, contributing to a 51% rise in AUM to Rs 23,236 crore.

In asset management, the quarterly average AUM grew 23% year-on-year to Rs 3.83 lakh crore, with monthly systematic investment plan (SIP) flows reaching Rs 1,425 crore—a 47% increase.

For life insurance, first-year premiums for H1 FY25 increased by 33% to Rs 1,578 crore, while group premiums rose by 45%, with a 13th-month policy persistency rate of 88%.

In health insurance, premiums climbed 39% to Rs 2,171 crore, and ABCL's market share among standalone health insurers grew by 123 basis points to 11.9%.