1QF27: Sustained strong growth and profitability improvement.

Research evidence excerpt

1QF27: Sustained strong growth and profitability improvement.

Idea

August 3, 2026 01:19 AM GMT

Morgan Stanley India Company Private Limited+MAditya Birla Capital | Asia Pacific Subramanian Iyer

Equity Analyst

1QF27: Sustained strong growth Subramanian.Iyer@morganstanley.comKushan Parikh, CFA +91 22 6118-2234

Kushan.Parikh@morganstanley.com +91 22 6118-1082

and profitability improvement. Meera Midha

Research Associate

Meera.Midha@morganstanley.com +91 22 6118-1232

Key contributing lines to SOTP - NBFC, HFC and life insurance - Sakshi V Chaplot

saw continued strong growth (AUM / APE) and expansion in Research Associate

Sakshi.Chaplot@morganstanley.com +91 22 6118-2228

profitability (ROA / VNB margin). We raised forecasts and PT

post the results. Medium risk profile, positive linkage to higher

rates, and reasonable valuation drive our OW.

First cut: F1Q27: First Cut: Good numbers, on balance (31 Jul 2026)

Changes to forecasts: Aditya Birla Capital Ltd: Risk Reward Update (31 Jul 2026) Aditya Birla Capital Ltd (ADTB.NS, ABCAP IS)

India Financials | India

NBFC – PAT grew 35% YoY, 3.5% above MSe. Strong loan growth; risk adjusted

Stock Rating Overweight

NIM was stable; ROA expanded QoQ. Loan growth accelerated to 27.6% (MSe 27%) Industry View Attractive

Price target Rs462

from 26.6% in 4QF26 driven by growth across segments. Stage 2 and Stage 3 ratios Up/downside to price target (%) 14

were largely stable across segments. Coverage improved. NIM declined QoQ by 1bp Shr price, close (Jul 31, 2026) Rs404

52-Week Range Rs413.00-243.00

and a key question on the call was, why is NIM not increasing despite stronger Mkt cap, curr (bn) US$11.0

growth in unsecured loans? Management cited that it expects NIM to improve Avg daily trading value (mn) US$19