ABCL Stock Update: The stock of Aditya Birla Capital Limited (ABCL) has climbed more than 5% in the last two business sessions. The main reason behind this is the results of the company’s fourth quarter (Q4FY25), which have fully lived the expectations of investors. The company’s stock closed at ₹ 216.55 on Friday, which shows an increase of 0.53% (₹ 1.15).

Investors have increased confidence in the company’s future, especially in view of its better asset quality, decreasing credit cost and double digit growth in AUM (Asset Under Management).

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NBFC Business: Group Loan gains, risks in risk (ABCL Stock Update)

The company’s Non-Banking Finance Business (NBFC) has shown significant improvement between FY 2022 to 2025. During this period, the share of secured loan increased from 44% to 46%, while the loan book increased from 33% to ₹ 57,992 crore. This has led to a decline in credit risk and cost.

At the same time, the total AUM of the NBFC segment has increased from an annual rate of 32% to ₹ 1.26 lakh crore. By FY26, it estimates more than 25% growth, mainly due to the company’s increasing impact on the digital platform.

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Some decline, but future expectations continue (ABCL Stock Update)

In FY25, the AUM of Personal and Consumer Loan Segment declined by 10.9% to ₹ 15,532 crore, causing its total contribution to 19% to 12%. It also affected the company’s yield, which fell 60 basis points to 13.1%.

However, the company hopes that in FY26, this segment will gain momentum again and can register up to 20% stake in the total AUM, which is possible to improve yield and net interest margin (NIM).

Asset management and insurance strengthened (ABCL Stock Update)

The company’s asset management business has emerged with strong double digit growth in FY25, which has an edge in both revenue and profit beefor tax. This growth has also improved the overall profits of ABCL.

Life and health insurance segments also saw a strong performance. In individual first year’s life insurance premium, ABCL’s market share increased from 4.2% to 4.8%, while in health insurance it has increased from 11.2% to 12.6%.

Hope of growth in FY26 (ABCL Stock Update)

According to a report by Brokerage House MK Global, FY26 also has a possibility of stable growth and strong profits in all major trades of the company. The company expects better returns from high-margin property and consumer loans in the era of fall in interest rates.

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