Aditya Birla Capital Q4 Net Profit Drops 31% as Expenses Rise
Aditya Birla Capital, the financial services arm of the Aditya Birla Group, has reported a significant decline in its net profit for the fourth quarter (Q4) of Financial Year 2025 (FY25). According to the company’s stock exchange filing, Aditya Birla Capital’s consolidated net profit dropped by 31.29% to ₹885.61 crore in Q4 FY25 from ₹1,288.11 crore in Q4 FY24.
The sharp decline in net profit is primarily attributed to rising expenses, which offset the company’s healthy revenue growth. Despite the decline, Aditya Birla Capital’s revenue from operations grew by 14.55% to ₹12,443.11 crore in Q4 FY25 from ₹10,919.13 crore in Q4 FY24.
The company’s total income increased by 15.42% to ₹14,441.21 crore in Q4 FY25 from ₹12,547.34 crore in Q4 FY24. The growth in total income was driven by strong performance from its life insurance, general insurance, and asset management businesses.
Aditya Birla Capital’s life insurance business reported a growth of 18.13% in premium income to ₹3,434.49 crore in Q4 FY25 from ₹2,903.29 crore in Q4 FY24. The company’s general insurance business also witnessed a growth of 11.91% in premium income to ₹2,531.14 crore in Q4 FY25 from ₹2,269.41 crore in Q4 FY24.
The asset management business of Aditya Birla Capital also reported healthy growth, with average assets under management (AUM) increasing by 15.44% to ₹2,34,311 crore in Q4 FY25 from ₹2,03,511 crore in Q4 FY24.
Despite the decline in net profit, Aditya Birla Capital’s operating profit grew by 10.14% to ₹1,441.91 crore in Q4 FY25 from ₹1,310.51 crore in Q4 FY24. The operating profit margin (OPM) of the company also improved to 11.55% in Q4 FY25 from 12.04% in Q4 FY24.
The company’s net interest income (NII) grew by 14.35% to ₹1,435.51 crore in Q4 FY25 from ₹1,255.51 crore in Q4 FY24. The NII growth was driven by the company’s strong performance in its lending businesses, including home loans, personal loans, and auto loans.
Aditya Birla Capital’s provisions for bad and doubtful debts (PBD) increased by 44.45% to ₹1,244.11 crore in Q4 FY25 from ₹863.51 crore in Q4 FY24. The increase in PBD was driven by the company’s efforts to strengthen its provisioning norms and to maintain adequate provisioning to cover potential losses.
The company’s management has expressed confidence in the company’s growth prospects and has indicated that it is well-positioned to benefit from the growth opportunities in the Indian financial services sector.
In a statement, the company’s management said, “We are pleased with our performance in Q4 FY25, despite the challenging market conditions. Our life insurance and general insurance businesses delivered strong growth, while our asset management business reported healthy growth in AUM. We remain committed to our strategy of growing our businesses through expansion of our distribution network, introduction of new products, and strengthening our risk management capabilities.”
In conclusion, Aditya Birla Capital’s Q4 FY25 results were impacted by rising expenses, which offset the company’s healthy revenue growth. Despite the decline in net profit, the company’s revenue from operations and total income grew significantly, driven by strong performance from its life insurance, general insurance, and asset management businesses.
Source:
