Standalone profit rose 38.54% QoQ as margin reached 79.90%
Revenue growth outpaced expenses, while the higher tax rate and limited other-income contribution mean profit growth was not tax- or exceptional-income led.
Filed 30 Oct 2026, 13:49 IST · Aditya Birla Capital Ltd (ABCAPITAL)
Key takeaways
- Standalone net profit rose +38.54% QoQ to Rs 1,237.23 cr as operating margin expanded by 2.78 percentage points.
- Revenue grew +21.88% YoY while expenses rose only +4.99%, lifting operating margin by 3.24 percentage points.
- Operating margin reached 79.90%, 20.04 percentage points above the 59-peer Financial Services median.
Price around the results
Revenue momentum lifted standalone earnings
Aditya Birla Capital's standalone revenue grew +10.09% QoQ and +21.88% YoY, while net profit rose +38.54% and +35.03%, respectively. The larger profit increase reflects operating leverage, with operating profit up +14.06% QoQ and +27.02% YoY. Other income contributed only 2.90% of pre-tax profit, limiting the contribution from non-operating items.
Lower expenses supported the margin recovery
Expenses fell -3.29% QoQ even as revenue grew +10.09%, expanding operating margin by 2.78 percentage points. YoY, expenses rose only +4.99% against revenue growth of +21.88%, driving a 3.24-percentage-point margin increase. Interest costs still rose +3.44% QoQ and +23.91% YoY, while the tax rate increased by 1.38 percentage points QoQ and 0.14 percentage points YoY, so the net-profit growth was not flattered by a lower tax rate.
Operating margin posted its third straight quarterly increase
Standalone operating margin has risen from 75.48% in Q3FY26 to 76.06% in Q4FY26, 77.12% in Q1FY27 and 79.90% in Q2FY27. At 79.90%, it was 20.04 percentage points above the 59-peer Financial Services median of 59.86%.
Management outlined distribution and product expansion
Management said it plans to scale the retail franchise, diversify products, increase SIP flows and expand the alternative-assets business across AIF, PMS and real estate. The company said it had empaneled more than 3,800 new MFDs in H1 FY27 and plans to widen geographic and multi-channel distribution. Management also said the Smart Wealth Pension Plan, launched in September 2026, contributed Rs 99 crore, while underwriting is being strengthened with artificial intelligence and machine learning.
Prior result reactions were usually positive
Across the eight prior result reactions, the stock rose six times and fell twice, with a median absolute move of 2.87%. The recent moves ranged from 0.10% to 6.56%, placing the historical response in a generally positive but variable range.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹5,493 cr | ₹4,990 cr | +10.09% | +21.88% |
| Other income | ₹48 cr | ₹11 cr | +354.25% | +185.22% |
| Expenses | ₹1,104 cr | ₹1,142 cr | -3.29% | +4.99% |
| Operating profit | ₹4,389 cr | ₹3,848 cr | +14.06% | +27.02% |
| Operating margin (%) | 79.90% | 77.12% | — | — |
| Interest | ₹2,736 cr | ₹2,645 cr | +3.44% | +23.91% |
| Depreciation | ₹41 cr | ₹37 cr | +10.52% | +10.52% |
| Profit before tax | ₹1,660 cr | ₹1,177 cr | +41.10% | +35.29% |
| Tax | ₹423 cr | ₹283 cr | +49.17% | +36.05% |
| Net profit | ₹1,237 cr | ₹893 cr | +38.54% | +35.03% |
| EPS (₹) | ₹4.52 | ₹3.39 | +33.33% | +28.77% |
Operating margin of 79.90% compares with a Financial Services sector median of 59.86% across 59 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company plans to scale its retail franchise and diversify product offerings.
- The company aims to drive growth in SIP flows.
- The company plans to scale its alternative assets business across AIF, PMS and real estate.
- The company expects individual FYP to grow at over 20% CAGR over the next three years and VNB margin to remain above 20%.
Expansion
- The company plans to expand its distributor base and empaneled over 3,800 new MFDs in H1 FY27.
- The company plans to expand geographic reach and strengthen its multi-channel distribution network.
New products
- The Smart Wealth Pension Plan was launched in September 2026 and contributed Rs. 99 crore.
New initiatives
- The company is strengthening underwriting using artificial intelligence and machine learning.
What to watch
- Whether standalone operating margin holds above 79.90%.
- Whether revenue growth remains ahead of expense growth after +21.88% YoY versus +4.99%.
- Progress in SIP flows, the 3,800-plus MFD distributor expansion and the Rs 99 crore Smart Wealth Pension Plan contribution.