Aditya Birla Capital Ltd.
NSE: ABCAPITALAditya Birla Capital Ltd.: A 30-second snapshot
Aditya Birla Capital (ABCAPITAL) is a diversified NBFC and financial-services holding company trading at ₹344.30, up 78.24% over the past 12 months and above both its 50-day (₹332.21) and 200-day (₹322.42) simple moving averages. FY26 PAT grew 21% YoY to ₹3,797 crore and Q4 FY26 profit rose 30% YoY, with the lending portfolio crossing ₹2 lakh crore. At a trailing PE of 24.54 and forward PE of 14.22, the stock trades in the mid-range of its peer set (HDFC Life at 69.1x, Bajaj Finance at 29.9x, Axis Bank at 14.8x), while ROE of 11.18% remains at the low end of the group.
P/E
24.5
Forward P/E
14.2
ROE
+11.2%
Debt / Equity
491.75
Profit Margin
+11.7%
Div. Yield
—
5Y ROE > 15%
1/5
5Y FCF > 0
0/5
Quality
49/100
News
7 headlines · 4 positive · 0 negative
ABCAPITAL: Profit up 30% YoY in Q4 FY26, with strong growth and stable asset quality across all segments - TradingView
TradingView
ABCAPITAL: Double-digit growth in revenue and profit, with strong digital adoption and stable asset quality - TradingView
TradingView
ABCAPITAL: FY26 profit after tax up 21% to ₹3,797 crore; lending portfolio exceeds ₹2 lakh crore - TradingView
TradingView
Aditya Birla Capital Confirms SEBI Compliance, 99.74% Equity in Demat Form - TipRanks
TipRanks
Advent International Buys 14.29% in Aditya Birla Housing Finance for ₹2,750 Crore via Preferential I - Business Upturn
Business Upturn
Recent context
- ·Q4 FY26 results (May 2026): profit up 30% YoY with stable asset quality and strong digital adoption across all segments; FY26 PAT of ₹3,797 crore (+21% YoY) and lending portfolio crossing ₹2 lakh crore were highlighted by multiple sources.
- ·Advent International acquired a 14.29% stake in Aditya Birla Housing Finance for ₹2,750 crore via preferential issuance (April 2026), injecting external capital into a key subsidiary.
- ·The company confirmed SEBI compliance with 99.74% of equity held in demat form (April 2026), a routine governance disclosure without material impact on fundamentals.
Strengths
- +5-year earnings CAGR of 30.1% and a forward PE of 14.22 versus trailing PE of 24.54 indicate that the market is pricing in continued near-term profit growth; Q4 FY26 profit of 30% YoY and full-year PAT of ₹3,797 crore support that trajectory.
- +Price is 78.24% higher over 12 months, trading above both SMA50 and SMA200 with RSI at a neutral 49.91 — the technical structure is positive without being extended.
- +Revenue growth of 7.7% over 5 years is supplemented by a lending book exceeding ₹2 lakh crore; Advent International acquiring a 14.29% stake in Aditya Birla Housing Finance for ₹2,750 crore signals third-party conviction in the subsidiary.
- +Mean analyst rating of 1.17 across 12 analysts (1–5 scale, lower = more constructive) reflects concentrated constructive sell-side coverage, though the small analyst count (12) limits inference.
Weaknesses
- −ROE of 11.18% ranks 6th (last) of 6 sector peers — below HDFC Life (11.28%), Axis Bank (13.15%), HDFC Bank (13.82%), Bajaj Finserv (14.6%), and Bajaj Finance (17.91%) — indicating below-peer capital efficiency despite strong recent earnings growth.
- −FCF-positive years: 0 of available history; for a financial-services holding company whose subsidiaries require continuous capital infusion, the persistent absence of free cash flow generation is a structural concern.
- −Consistency score of 12 and ROE exceeding 15% in only 1 of recorded years suggest the 30.1% earnings CAGR is concentrated in recent periods rather than compounded evenly across the cycle.
- −Quality score of 43 ranks 4th of 6 peers, and the debt trend is classified as rising; D/E of 491.75 is structurally elevated even accounting for NBFC balance-sheet norms.
Open questions
- ?Does the 5-year earnings CAGR of 30.1% reflect a structural improvement in ABCAPITAL's business mix — such as the shift toward higher-margin lending products — or is it driven primarily by base-effect recovery from earlier loss years?
- ?At what point, if any, does the holding company generate positive free cash flow, and what conditions (subsidiary profitability thresholds, capital recycling) would need to be met for that to occur?
- ?How does ABCAPITAL's ROE trajectory (currently 11.18%) compare to its own 5-year history, and is the gap versus peers such as Bajaj Finance (17.91%) narrowing or stable?
- ?The forward PE of 14.22 implies a significant earnings step-up relative to the trailing multiple of 24.54 — what are the key operational assumptions behind that implied earnings growth, and which subsidiaries are expected to drive it?
Peer comparison: Banking
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| ABCAPITAL | Aditya Birla Capital Ltd.You're viewing | 24.5 | +11.2% | 43 |
| Industry avg | across 5 peers | 32.0 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 14.8 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.9 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 17.2 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 29.1 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 69.1 | +11.3% | 20 |
Technical state
Current price
₹344.30
SMA 50
₹332.21
SMA 200
₹322.42
RSI (14)
49.9 (neutral)
From 52w high
-8.4%
1Y return
+78.2%
3M return
-2.4%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highFCF-positive years: 0 of available data and ROE exceeded 15% in only 1 of recorded years; a D/E of 491.75 is typical for NBFCs but the leverage is not yet generating commensurate equity returns, with ROE at 11.18% ranking last (6th of 6) among listed sector peers.
- highConsistency score of 12 out of 100 and zero FCF-positive years across the available history indicate that the 5-year earnings CAGR of 30.1% is concentrated rather than sustained; structural capital generation remains unproven.
- mediumQuality score of 43 ranks 4th of 6 peers in the Banking/NBFC sector; ROE of 11.18% trails Bajaj Finance (17.91%), HDFC Bank (13.82%), Bajaj Finserv (14.6%), and Axis Bank (13.15%), placing ABCAPITAL at the bottom of the peer ROE ladder.
- lowNews sample is sparse (7 articles total); overallLabel of positive is derived from 4 positive and 3 neutral articles with 0 negative — small sample limits confidence in the sentiment read.
Cross-section contradictions
- 5-year earnings CAGR of 30.1% and Q4 FY26 profit up 30% YoY (FY26 PAT ₹3,797 crore, +21% YoY) contrast with ROE of 11.18% ranked last among 6 peers and a consistency score of 12, indicating that recent growth has not translated into durable capital efficiency.
- Stock is up 78.24% over 1 year and trades above both SMA50 (₹332.21) and SMA200 (₹322.42) with only an 8.42% drawdown from 52-week high, yet 0 FCF-positive years and a quality score of 43 suggest price recovery has materially outpaced underlying business-quality improvement.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days