Aditya Birla Money Limited Earnings Summary — Q1 FY2027
Aditya Birla Money Reports Q1 Revenue Growth but Faces Significant Profit Compression
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 2.3% sequentially in Q2 FY2019.
- Revenue of ₹43 Cr is 9.8% higher year-on-year.
- Revenue has compounded at 22.1% annualised over the last 10 quarters.
- Net profit of ₹2 Cr is 62.8% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at -4.9% annualised across the period.
- Operating margin stands at 24.4% in Q2 FY2019.
- Operating margin expanded by 1240 bps year-on-year.
- Over the last two years operating margin has expanded by 1830 bps.
- PBT margin is 8.1%.
- Expense growth of -5.7% remained below revenue growth of 9.8%.
- Operating profit of ₹11 Cr is 123.4% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 77/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q2 FY2019 | Q1 FY2019 | Q4 FY2018 | Q3 FY2018 | Q2 FY2018 | Q1 FY2018 | Q4 FY2017 | Q3 FY2017 | Q2 FY2017 | Q1 FY2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 43 | 42 | 44 | 43 | 39 | 36 | 34 | 33 | 33 | 28 |
| Expenses | Stable | 33 | 34 | 37 | 37 | 35 | 33 | 30 | 28 | 31 | 28 |
| Operating Profit | Strong Uptrend | 11 | 8 | 7 | 6 | 5 | 3 | 5 | 5 | 2 | -1 |
| Operating Margin | Strong Uptrend | 24.4% | 19.1% | 16.5% | 14.1% | 12.0% | 7.4% | 13.5% | 15.9% | 6.1% | -2.0% |
| Other Income | Volatile | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 0 | 3 | 2 |
| Interest | Strong Uptrend | 7 | 6 | 4 | 3 | 2 | 1 | 1 | 2 | 1 | 2 |
| Depreciation | Softening | 1 | 0 | 0 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Profit Before Tax | Volatile | 4 | 3 | 3 | 4 | 3 | 1 | 4 | 3 | 3 | -1 |
| Tax | Volatile | 1 | 1 | 1 | 1 | 1 | 0 | 1 | — | — | — |
| Net Profit | Volatile | 2 | 2 | 2 | 3 | 1 | 1 | 3 | 3 | 3 | -1 |
| Net Margin | Volatile | 5.5% | 4.8% | 5.2% | 6.6% | 3.7% | 3.6% | 8.6% | 9.1% | 8.0% | -4.7% |
Key Takeaways
- Revenue from operations grew 16% YoY, driven primarily by interest income and a steady performance in the broking segment.
- Net profit saw a sharp decline of over 27% YoY, primarily due to a significant increase in operating expenses and finance costs.
- Finance costs rose 38.2% YoY to ₹4,367 lakhs, reflecting the company's increased reliance on borrowings to fund its margin trading books.
- Employee benefit expenses increased 13.8% YoY and 21.1% QoQ, further weighing on the bottom-line results.
- Operating margins compressed significantly to 11.78% from 18.25% a year ago, highlighting rising cost pressures despite revenue growth.
- The Broking segment remains the dominant revenue contributor at ₹9,814 lakhs, though its segment result fell sharply compared to the previous quarter.
- The Wholesale Debt Market segment showed stability with a segment result of ₹1,384 lakhs, remaining a key profit driver.
- The company's Debt-Equity ratio marginally increased to 7.36x, indicating a continued leveraged structure to support its financial services operations.
Management Guidance
Management focus remains on disciplined execution and qualitative steady compounding within the retail financial services space. While no specific numerical guidance was provided in the filing, the focus is on maintaining regulatory compliance and leveraging the Aditya Birla brand to provide credit credibility.
Sentiment Shift
Deteriorating
While revenue remained stable on a sequential basis, the sharp compression in margins and significant drop in net profit compared to both the prior quarter and the same quarter last year signals increased cost pressures and lower operational efficiency.
Outlook
The outlook remains cautious as the company navigates a highly competitive broking market and rising finance costs. Future profitability will depend on the company's ability to scale its high-margin Interest Income (MTF) while managing employee and borrowing costs. The transition toward a recurring revenue model through distribution and PMS continues to be a long-term goal.
From the Annual Report (Key Quotes)
“The Government of India has implemented four new Labour Codes ('Codes')... The Company has assessed and disclosed the incremental impact of these changes.”
“The results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on July 14, 2026.”
“Debt Service Coverage Ratio (DSCR) is not applicable as the Company does not have any long-term debt obligations.”
Official Quarterly Documents
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This summary is AI-generated from Aditya Birla Money Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.