AB Capital Q2 profit rises 35%; NII grows 24% YoY in Q2

reported strong Q2 FY27 standalone financial performance for the quarter ended September 30, 2026. Net profit increased 35% year-on-year to ₹1,237 crore compared with ₹916 crore in the corresponding quarter last year. Net Interest Income (NII) increased 24% to ₹2,148 crore from ₹1,734 crore, indicating healthy growth in interest-based earnings. The rise in both net profit and NII reflects positive momentum in the company's standalone financial performance. From a fundamental perspective, strong NII growth is important for a financial services business because it reflects the difference between interest earned and interest paid. Profit growth exceeding NII growth is also encouraging, although a complete assessment requires details of operating expenses, credit costs, asset quality and other income. Investors should note that these are standalone figures. Aditya Birla Capital operates across lending, insurance and other financial services, so consolidated results will provide a broader picture of overall group performance. My View: The 35% growth in standalone profit and 24% increase in NII are positive indicators. However, asset quality, loan growth, margins and consolidated performance will be important to determine the sustainability of earnings growth. What to watch: Loan book growth and disbursement trends. Net interest margins and NII growth. Asset quality and credit costs. Consolidated profit and subsidiary performance. Stance: ABCAPITAL – POSITIVE (8/10)