Aditya Birla Capital Q4 net profit drops 31 pc as expenses rise

IANS May 13, 2025 143 views

Aditya Birla Capital reported a 31% drop in Q4 net profit despite revenue growth, as rising expenses impacted earnings. The company's shares fell on both NSE and BSE following the results. Its digital platforms, ABCD and Udyog Plus, continue to expand, serving millions of customers. The firm also highlighted its growing physical presence with over 1,600 branches nationwide.

"Aditya Birla Capital’s direct-to-customer platform, ABCD, now offers over 25 financial products and services." – Company Exchange Filing
Mumbai, May 13: Aditya Birla Capital on Tuesday reported a sharp decline in its net profit for the fourth quarter (Q4) of FY25, as rising expenses offset the company’s healthy revenue growth.

Key Points

1

Q4 net profit drops 31% to Rs 885.61 crore

2

Revenue rises 13.3% to Rs 12,214 crore

3

Expenses surge 18.34% YoY

4

Shares decline on NSE and BSE

The company’s consolidated net profit fell by about 31.29 per cent to Rs 885.61 crore in Q4 FY25, compared to Rs 1,288.11 crore in the same quarter last fiscal (Q4 FY24), according to its stock exchange filing.

This decline came despite a 13.3 per cent increase in revenue from operations, which rose to Rs 12,214.04 crore from Rs 10,779.71 crore in the same period last fiscal.

Total income also grew by 13.29 per cent year-on-year (YoY) to Rs 12,238.92 crore.

However, the gains were overshadowed by a steeper rise in total expenses, which surged 18.34 per cent to Rs 11,072.29 crore during the quarter from Rs 9,356.05 crore a year ago.

Shares of Aditya Birla Capital reacted negatively to the results, closing 1.47 per cent lower at Rs 202.51 on the National Stock Exchange (NSE).

On the Bombay Stock Exchange (BSE), the shares closed at Rs 204.35, down by Rs 1.20 or 0.58 per cent.

In its regulatory filing, the company emphasised the strength of its digital and physical distribution strategy.

“Aditya Birla Capital’s direct-to-customer (D2C) platform, ABCD, now offers over 25 financial products and services, and has attracted 5.5 million customers to date,” as per its exchange filing.

Its business-focused platform, Udyog Plus, continues to gain traction in the MSME sector, with over 2.2 million registrations and a loan portfolio exceeding Rs 3,500 crore as of March 31.

The company also highlighted its expanding physical footprint, with 1,623 branches across the country aimed at deepening its reach into tier 3 and tier 4 towns.

Reader Comments

Here are 6 diverse Indian perspective comments for the financial news article:
R
Rahul K.
Not surprising given the current economic climate. All financial companies are facing rising operational costs. The digital growth numbers look promising though - ABCD platform adding 5.5M customers is impressive! Hope they can turn this around next quarter.
P
Priya M.
As a small investor, this worries me. The stock has been underperforming for months now. The MSME focus is good but expenses growing faster than revenue is never a good sign. Maybe time to review my portfolio allocation to AB Capital. 🤔
A
Amit S.
The tier 3/4 expansion strategy is smart but expensive. They're playing the long game - building physical presence while growing digital. Short term pain for long term gain perhaps? The market reaction seems too harsh for just one bad quarter.
N
Neha P.
Their Udyog Plus platform helped my brother's small business get a loan last year when banks rejected him. So while profits are down, I appreciate their work in MSME sector. Not everything is about quarterly numbers!
S
Sanjay T.
31% drop is huge yaar! Management needs to explain what exactly caused this expense surge. Inflation can't be the only reason. Hope this isn't the start of a downward trend. Aditya Birla group companies usually perform better than this.
K
Kavita R.
The digital transformation numbers look solid, but traditional investors will focus on the bottom line. Maybe they should slow down physical expansion and focus more on improving digital margins? Tough balance to maintain in current market conditions.

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Aditya Birla Capital Q4 results profit decline financial services stock market