HFC ROA target of 2-2.2% over next 8 quarters
Management expects housing finance ROA to improve to 2-2.2% in the next 8 quarters, driven by operating leverage and scale.
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Aditya Birla Capital · forward-looking guidance across the available source record.
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margins
Life insurance net VNB margin expansion to 18%+ for FY26
Net VNB margin guidance of 18%+ for FY26, up from 7.5% in Q1, driven by product mix and rider attachments.
Life insurance individual FYP CAGR of 20-25% for 3 years
Management targets 20-25% CAGR in individual first-year premium over the next three years, with absolute net VNB doubling.
Credit cost expected to remain in similar range for FY26
NBFC credit cost of 1.3% in Q1 is expected to be maintained for the full year, reflecting stable asset quality.
Life Insurance: 20%+ Annual FYP Growth for Next 3 Years
Management reaffirmed its target to grow individual first year premium at 20%+ CAGR over the next three years, while simultaneously expanding VNB margins above 20% and doubling absolute net VNB value.
Housing Finance: 1 Lakh Crore AUM in 6-8 Quarters
ABHFL targets reaching ₹1 lakh crore AUM in approximately 6-8 quarters from now, with ROE expected to scale back to ~15% as the business normalizes after the recent ₹250 crore capital raise.
Gold Loan: 200-300 Branches by March 2027
ABCAPITAL is foraying into gold loan with 200-300 standalone branches going live in Q2 FY27, scaling to ~1,000 branches over three years, with all capex already budgeted in current plans.
Housing Finance: Opex to AUM Stable at ~2.2% Despite Branch Expansion
Despite adding 80-100 new branches during FY27 (50 already launched), HFC expects operating expense ratio to remain range-bound around 2.2% due to productivity improvements from AI-driven digital platforms.
NBFC loan book to double in 3 years (~25% CAGR)
Management guided for NBFC AUM growth of 24-25% annually, aiming to double the loan book in three years.
Life insurance individual FYP CAGR of 20%+ for 3 years
Life insurance business targets 20%+ CAGR in individual first year premium over the next three years, with VNB margin expansion to 18%+.
NBFC ROA expansion to ~2.5% in 4-5 quarters
NBFC business aims to expand ROA to approximately 2.5% over the next four to five quarters, from current 2.25%.
HFC ROA target of 2.1-2.2% to be achieved earlier than guided
Housing finance expects to reach its targeted ROA range of 2.1-2.2% ahead of the original 6-8 quarter timeline, given strong progress.