Aditya Birla Capital reports a 4% decline in Q3 FY25 net profit, reaching ₹708 crore. Despite this, the company sees significant growth in its lending portfolio and insurance business.
Aditya Birla Capital, a leading financial services conglomerate, reported a 4% year-on-year decline in its consolidated net profit for the third quarter of FY25, ending December 2024. The company posted a net profit of ₹708 crore, down from ₹735.78 crore in the same period last year.
Company Overview
Aditya Birla Capital, part of the Aditya Birla Group, offers a wide range of financial services including asset management, life insurance, health insurance, lending, and wealth management. It operates across multiple segments such as Non-Banking Financial Company (NBFC), Housing Finance Company (HFC), and mutual funds, among others.
Financial Performance
The company’s consolidated income from operations stood at ₹9,381.35 crore during the October-December 2024 period, marking an increase of 9.09% compared to ₹8,398.94 crore for the same quarter in 2023. Additionally, Aditya Birla Capital’s consolidated revenue grew by 10% year-on-year, reaching ₹10,949 crore in Q3 FY25.
Segment Performance
Aditya Birla Capital’s lending portfolio, which includes both NBFC and HFC, saw strong growth of 27% year-on-year, amounting to ₹1,46,151 crore as of December 31, 2024. The NBFC segment’s assets under management (AUM) grew by 21% YoY, reaching ₹1.19 lakh crore, while the HFC’s AUM surged by 62% YoY to ₹26,714 crore.
In the mutual fund segment, the quarterly average AUM stood at ₹3,83,911 crore, a 23% increase compared to the previous year. Furthermore, the total AUM across AMC, life insurance, and health insurance reached ₹5,03,377 crore, reflecting a 23% growth YoY as of December 31, 2024.
The company’s health insurance business also performed well, with gross written premiums for 9M FY25 at ₹3,337 crore, marking a 39% year-on-year increase. Total premiums (life and health insurance combined) grew by 27% YoY to ₹16,942 crore in the same period.
Udyog Plus Growth
Aditya Birla Capital’s B2B platform, Udyog Plus, aimed at MSMEs, crossed ₹3,300 crore in AUM, with over 2.2 million registrations to date. The company noted a growing adoption rate from its existing customers, indicating strong momentum for the platform.
Stock Price Movement
Following the announcement of the Q3 results, Aditya Birla Capital’s stock saw a decline of 2.58%, closing at ₹172.10 on the Bombay Stock Exchange (BSE). During intraday trades, the stock dipped more than 4% before recovering.
Despite the decline in net profit, Aditya Birla Capital remains positive about the continued growth of its diversified financial services portfolio. The company’s solid performance in multiple segments, including lending, mutual funds, and insurance, provides a strong foundation for future growth. Investors will be keeping an eye on how these segments perform in the coming quarters.
