Aditya Birla Capital Q2 FY27 Results Analysis: PAT Jumps 38%, GS3 at Series Low (ABCAPITAL)

Cofacto Research Published October 30, 2026 5 min read

Positive

Aditya Birla Capital Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 14,003.21 Cr (+32.17% YoY) and PAT growth of +37.94% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	October 30, 2026
Revenue (Q2)	Rs. 14,003.21 Cr (+32.17% YoY)
PAT (Q2)	Rs. 1,287.68 Cr (+37.94% YoY)
EPS (Q2)	Rs. 4.71 (+31.90% YoY)

Quarter Snapshot

Consolidated revenue grew 32.17% YoY with PAT-to-owners up 37.94% to Rs.1,287.68 crore, PPOP up 31.2%, and asset quality at series lows (GS3 1.28%), while NBFC RoA of 2.45% tracks the 2.5% end-FY27 target and HFC RoA of 2.12% sits within the guided band. Balance-sheet strength improved via Rs.6,750 crore of equity infusions, cutting debt-equity to 4.60x. Soft spots are the AMC result (−27.1% QoQ), health insurance result (−75.5% YoY vs restated base), and a 29.0% YoY decline in JV/associate share.

Q2 FY27 Expectations vs Results

Driver	Expected before results	What happened	Verdict
Lending "in line to ahead on volume"	"book entered the quarter at Rs.2,19,289 crore (+32% YoY)… gold-loans vertical adds a new origination engine"	Lending segment revenue +22.99% YoY; NBFC PBT +41% YoY; lending AUM +32% YoY	Played out
AMC "flows tailwind, market-level mixed"	"Record SIP contributions… September MTM-driven AUM decline tempers the quarter-average read"	MF QAAUM +4% YoY; AMC result −6.2% YoY, −27.1% QoQ	Partially
Life "clear demand tailwind… skewed to group single-premium"	"individual-business growth runs closer to ABSLI's own 20%+ target"	Individual FYP H1 +25% YoY; group NBP +90% (press release); VNB margin 16.1%	Played out
Health "demand tailwind"	"GST exemption continues to support affordability"	GWP H1 +48% YoY; market share 14.2% (+70 bps); but segment result −75.5% YoY vs restated base	Partially
NBFC NIM "flat-to-compressing risk; margin promise most at risk"	"promised 25–30 bps expansion… was absent in Q1"	No Q2 NIM print in the filing — not observable; RoA nonetheless improved to 2.45%	Not observable
Opex "a known drag… gold-loan rollout adds front-loaded cost"	"employee expenses grew 37% YoY in Q1, outpacing revenue"	Q2 employee costs +24.0% YoY but −4.7% QoQ; revenue +32.2% — opex grew slower than revenue this quarter	Contradicted for the quarter
Credit cost "benign but normalizing"	"direction of the mix argues against the below-guide print persisting"	Impairment −3.7% YoY, −8.7% QoQ; GS3 1.28% — still benign	Played out
October repo hike "lands on the funding book from Q3 onward"	post-quarter MPC move (pre-call note, web-sourced, dated)	Not in these balance-sheet numbers; LCR fell QoQ to 158.68%	Not observable this quarter

Read our full results preview.

Management Guidance vs Delivery

What management said	Where	What happened	Verdict
NBFC RoA 2.5% by end-FY27	Management commentary on the Q4 FY26 earnings call, reiterated Q1 FY27	2.45% in Q2 FY27 (+25 bps YoY, +6 bps QoQ, per press release)	On Track
HFC RoA 2.10–2.15% for FY27	Q4 FY26 earnings call	2.12% in Q2 FY27 (press release) — in band	Met
HFC AUM Rs.1 lakh crore+ in 6–8/8–10 quarters	Q1 FY27 call	Rs.57,373 crore at Sep-26 (+50% YoY, +11% QoQ)	On Track
Life individual FYP 20%+ CAGR over 3 years	Reiterated through Q1 FY27	H1 FY27 Rs.2,342 crore, +25% YoY (press release)	On Track
Life VNB margin above 20% in 3 years (raised from 18–20%)	Q1 FY27 call	H1 FY27 16.1%, +447 bps YoY; net VNB Rs.424 crore, +78% (press release)	Too Early
Health combined ratio → 100%	Q4 FY26 call (open-ended)	H1 FY27 107% (press release) — directional	On Track
NBFC credit cost 1.1–1.2% FY27	Q4 FY26 call	Q2 print not disclosed in the filing — Cannot assess from this filing	Too Early
NBFC margin +25–30 bps over 2–3 quarters from Q4 FY26	Q4 FY26 call	No Q2 NIM print in the filing — Cannot assess from this filing	Too Early
"Strong earnings growth with robust asset quality"	Q2 FY27 press release (in the filing)	PAT +37.9% YoY; standalone GS3 1.28% (−40 bps YoY); NBFC GS2&3 2.31% (−72 bps YoY)	Confirmed
NBFC growth "with quality" — disbursements growing while credit cost falls	Prior-quarter calls	Disbursements Rs.24,708 crore, +12% YoY (press release); impairment on financial instruments −3.7% YoY consolidated	Confirmed

Key Investment Insights

Key Positives

Consolidated revenue grew 32.17% YoY to Rs.14,003.21 crore; PBT grew 42.26% and PAT-to-owners grew 37.94% to Rs.1,287.68 crore
Consolidated NII rose 28.1% YoY to Rs.2,816.54 crore; PPOP grew 31.2% YoY to Rs.2,226.83 crore
Cost-to-income improved 161 bps YoY to 10.93% (consolidated) and 251 bps to 26.56% (standalone)
Standalone GS3 fell to 1.28% (−40 bps YoY) and NS3 to 0.66%, both series lows; impairment declined 3.7% YoY and 8.7% QoQ
NBFC RoA improved to 2.45% (+25 bps YoY) vs the 2.5% end-FY27 target; HFC RoA of 2.12% is within the guided 2.10-2.15% band
Lending AUM +32% YoY to Rs.2,33,930 crore; HFC AUM +50% YoY to Rs.57,373 crore; HFC segment PBT +72.87% YoY
Life individual FYP +25% YoY in H1 (Rs.2,342 crore); VNB margin 16.1% (+447 bps YoY); net VNB Rs.424 crore (+78%)
Debt-equity improved to 4.60x from 5.20x at Mar-26; capital adequacy 18.76%; equity raised via Rs.4,000 crore preferential issue and Rs.2,750 crore ABHFL Advent infusion

Risk Factors

Asset Management segment result fell 6.15% YoY and 27.06% QoQ (Rs.296.19 crore) on equity-market softness, with margin down to 56.63% from 62.40%
Health insurance segment result fell 75.46% YoY to Rs.25.28 crore vs Rs.103.02 crore restated, with margin down to 1.23% from 6.75%
Share of JV/associate profit declined 28.97% YoY to Rs.110.49 crore
Effective tax rate rose to 26.25% (from 25.52%), with total tax growing 46.3% YoY, faster than PBT
Life VNB margin at 16.1% H1 remains below the raised above-20% three-year ambition; health combined ratio at 107% vs the 100% goal
LCR declined QoQ to 158.68% from 172.69%