Aditya Birla Capital: 32% loan growth, 11% return

Aditya Birla Capital Limited (NSE: ABCAPITAL) grew Q1 FY27 profit 40% to ₹1,175 crore. Its lending book rose 32% to ₹2,19,289 crore. The stock is near ₹382. What happened NBFC assets grew 28% to ₹1,67,456 crore, with disbursements up 34% and return on assets at 2.39%. Gross stage 3 improved to 1.30%. Housing finance was the standout. Assets rose 50% to ₹51,833 crore and pre tax profit nearly doubled to ₹300 crore. Health insurance turned profitable. The asset management arm grew average assets just 6%. The company raised ₹4,000 crore from promoters and IFC, with 87.5% going to the NBFC. Why it matters Banks have slowed unsecured lending and large NBFCs are taking that business. Aditya Birla Capital is doing it with a safety net. Its unsecured business loan book shows stage 3 of 1.1%, and 40% of it carries a government guarantee. My view That guarantee is the detail most readers will miss. It means part of the riskiest book is not fully the company's risk. Few lenders in this cycle can say that. Now the trade off. Look at the mix. The lending arms grew 32%, while asset management, which needs almost no capital, grew 6%. So the group is tilting towards businesses that eat equity. That is why ₹4,000 crore was just raised, and why more will follow at this pace. Return on equity is still only about 11%. At around 2.7 times book, the market is already paying for the improvement rather than the current return. What I am watching Q2 FY27 results, the gold loan rollout, and asset management growth picking up. On the chart, ₹430 is the 52-week high and ₹340 is support. My stance: Hold. Add near ₹340. Growth is real, but it is being bought with equity. Disclosure: I do not hold a position in Aditya Birla Capital Limited at the time of writing. This is not investment advice.