ABCAPITAL Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹14,181 Cr
verified against source
Revenue YoY
30%
reported change
EBITDA
Pending
latest reported figure
Source
screener in partial
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Aditya Birla Capital delivered a strong Q3 FY26 with consolidated PAT up 41% YoY to ₹983 crore and revenue up 30% YoY to ₹14,181 crore. Growth was driven by robust lending momentum: NBFC AUM grew 24% YoY to ₹1.48 lakh crore and HFC AUM surged 58% YoY to ₹42,204 crore. Asset quality improved across segments, with NBFC GS2+GS3 down 150bps YoY to 2.8% and HFC stage 2+3 at 0.95%. The housing finance subsidiary secured a landmark ₹2,750 crore capital infusion from Advent International, valuing ABHFL at ₹19,250 crore. Life insurance VNB margin expanded 380bps to 14.2%, and health insurance gross premium grew 39% YoY. Management guided for NBFC loan book growth of ~25% and life insurance individual FYP CAGR of 20%+ over three years. Key risk: yield improvement in NBFC may take longer than expected due to portfolio mix recalibration.
Colored figures show movement against the previous available record.
Guidance to track
- Management guided for NBFC AUM growth of 24-25% annually, aiming to double the loan book in three years.
- Life insurance business targets 20%+ CAGR in individual first year premium over the next three years, with VNB margin expansion to 18%+.
- NBFC business aims to expand ROA to approximately 2.5% over the next four to five quarters, from current 2.25%.
- 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.
Risks flagged
- Despite favorable mix shift towards unsecured lending, management indicated it will take a couple of quarters for yields to improve at the portfolio level, potentially delaying NIM expansion.
- Analysts raised concerns about potential ECL model changes after a peer increased provisions; management downplayed the need, but regulatory nudges could alter provisioning requirements.
- Life insurance margins face headwinds from GST changes; only 40% of the impact has been mitigated via commercial arrangements, with the balance to be managed through product strategy.
- The ₹2,750 crore capital infusion from Advent International is subject to CCI approval, expected by end of March 2026, but any delay could slow growth plans.
Key quotes
- We believe we are now fully geared up for the next phase of our growth. Going forward, we believe our strength in balance sheet will enable us to sustain the current growth momentum, gain market share and improve our profitability while maintaining the best-in-class asset quality.
- Our guidance continues to grow individual FIP at a CAGR of 20% plus for the next three years. Whilst achieving this growth, we intend expanding our current VNB margins of 18% plus and in absolute terms double the value of our net VNB in 3 years time.
- We have successfully signed one of the largest capital infusion deals in the Indian housing finance sector and are pleased to welcome Advent International as a new shareholder.
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