Aditya Birla Capital Limited

Financial Services — Financial Conglomerates · NSE

₹379.40−₹2.85 (−0.75%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by negative free cash flow.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:56 pm

Understanding the Business

Company site ↗

The 60-second version of Aditya Birla Capital Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Aditya Birla Capital Limited, through its subsidiaries, provides various financial products and services in India and internationally.

IndustryFinancial Conglomerates

SectorFinancial Services

Employees66,500

Annual revenue₹45,927 Cr

How does it make money?

Turns over ₹45,927 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹38 left at the operating level before interest, tax and depreciation. Each of its 66,500 employees supports ₹69.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹69.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What is the outlook?

8 analysts covering the stock expect revenue to grow about 421.6% and earnings to grow about 26.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+421.6%

Est. earnings growth+26.3%

Analysts8

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +61% while net margin moved -51% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+61%

Margin effect-51%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Revenue CAGR of 17.1% — compounding well above nominal GDP
✗ Profit has declined at 7.8% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

66/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

43/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

24.5x

3Y Median

17.2x

40 monthly readings · mean 18.6x · range 8.4x–31.9x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 43% above its 3y median of 17.2x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 44% above the peer median of 17.0x.

vs. its own history

Expensive

17.2x median over 40 months · +43%

vs. sector peers

Expensive

17.0x median of 4 peers · +44%

vs. generic bands

Fair

15x–35x

EV/EBITDA

16.2x

PEG

0.63

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 23.6% to 10.9% — each rupee of shareholder capital earns less than it did.
Receivables growing faster than sales
Receivables are up 105% against revenue growth of 61% — customers are taking longer to pay.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.5x — little room if earnings dip.
🟡Profit is decliningFinancial
Net profit is down 22% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 43% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 23.6% to 10.9%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 13% a year✓ 17.1% CAGR
Latest reported year was 31.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 36%✓ 37.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 9%✓ 10.9%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ 1.5x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 17.2x✗ 24.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹1.04 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

24.5x

Fair

Fairly valued against the generic band

P/B Ratio

2.89x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹15.48

Profitable

Profitable on a per-share basis

ROE

10.9%

Moderate

Moderate capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

4.96x

High

High leverage

Revenue Growth (YoY)

31.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

39.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹36,938 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

15.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

17.9%

Good

Healthy core-business profitability

Net Margin

11.9%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.70

Defensive

Steadier than the market

52W Range Position

64%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

384.6 / 395.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

41.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹28,578 Cr	₹40,627 Cr	₹43,149 Cr	₹45,927 Cr	+17.1%
EBITDA	₹10,620 Cr	₹12,438 Cr	₹14,912 Cr	₹17,357 Cr	+17.8%
EBITDA Margin	37.2%	30.6%	34.6%	37.8%	—
PAT (Net Profit)	₹4,796 Cr	₹3,335 Cr	₹3,332 Cr	₹3,764 Cr	-7.8%
EPS	₹19.77	₹12.95	₹12.67	₹14.24	-10.4%
ROE	23.6%	12.4%	11.0%	10.9%	—
Total Debt	₹84,726 Cr	₹1.10 L Cr	₹1.40 L Cr	₹1.79 L Cr	+28.4%
Free Cash Flow	-₹24,274 Cr	-₹24,503 Cr	-₹28,392 Cr	-₹36,938 Cr	—

🟢 Revenue has grown at 17.1% a year over 3 years.

🟢 EBITDA has grown at 17.8% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 37.8% over 3 years.

🔴 PAT (Net Profit) has shrunk at 7.8% a year over 3 years.

🔴 EPS has shrunk at 10.4% a year over 3 years.

🔴 ROE has fallen from 23.6% to 10.9% over 3 years (-12.7 pts).

🔴 Total Debt has grown at 28.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3.35 L Cr

Total Liabilities

₹2.99 L Cr

Cash & Equivalents

₹2,403 Cr

Operating Cash Flow

-₹36,544 Cr

Capex

-₹394 Cr

Shareholding (proxy)

Institutional Holding

16.0%

Insider Holding

68.7%

Corporate Actions

Next Earnings

29 Oct 2026

Analyst Consensus

Recommendations

14 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹468.79

+23.6% vs CMP

Target Range

₹416 – ₹506

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

2 mixed4 general

Aditya Birla Capital Share Price - Live NSE: ABCAPITAL Stock Price & Chart

Upstox, 16 Oct

Aditya Birla Capital (NSEI:ABCAPITAL) Stock Price

Simply Wall Street, 12 Oct

Aditya Birla Capital shares: Up 30% in one year! Jefferies sees 25% more upside; should you buy? Target price, rationale

Livemint, 14 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Aditya Birla Capital Shares: Jefferies India Sees 25% Upside, Should You Buy?

Univest, 14 Oct

Aditya Birla Capital share price jumps 3.5% on foray into gold loan biz

Business Standard, 20 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Aditya Birla Capital Ltd. Actuals & Estimates (NSE:ABCAPITAL)

TradingView, 25 Jun

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Risk

MiddlingGrowth · Profitability · Valuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Interest cover stays above 3x; Valuation vs its own median of 17.2x · see Key things to watch ↑