Aditya Birla Money profit slips 28% as finance costs surge
Net profit fell to ₹11.13 crore from ₹15.38 crore a year ago. Revenue rose 16% but finance costs jumped to ₹43.67 crore, squeezing margins to 11.78%.
— 1 earlier story on Aditya Birla Money Ltd. →What's new
- Net profit for June quarter fell 28% YoY to ₹11.13 crore.
- Revenue rose 16% to ₹130.77 crore, driven by broking and interest income.
- Operating margin narrowed to 11.78% from 18.25%, as finance costs hit ₹43.67 crore.
Why this matters
Aditya Birla Money is growing top line but finance costs are consuming profits. With debt-to-equity at 7.11, the interest burden is structural. Margin compression could persist unless costs ease. The auditor saw no red flags, but the trend bears watching.
What we're watching
- Whether finance costs stabilise in coming quarters.
- Any management commentary on margin trajectory or debt reduction.
- Sequential profit comparison: net profit dropped from ₹18.73 crore in March quarter.
The full read
Revenue rose 16% to ₹130.77 crore. Profits didn't. Finance costs surged to ₹43.67 crore, consuming the gains and dragging net profit to ₹11.13 crore — down 28% from a year ago and 41% from the March quarter. The operating margin narrowed to 11.78% from 18.25%. With debt/equity at 7.11, the interest burden is structural. The auditor gave a clean opinion. But this is a routine filing, no guidance, no surprise. The next test is whether finance costs stabilise.
Questions answered
- Why did net profit fall despite higher revenue?
- Finance costs jumped to ₹43.67 crore from ₹31.59 crore a year earlier, outpacing revenue growth of 16%. That squeezed operating margin from 18.25% to 11.78%, dragging net profit down.
- What drove the revenue increase?
- Revenue from operations rose to ₹130.77 crore, driven by higher broking income and interest income. No further breakdown was provided in the filing.
- Is the margin compression a one-off or a trend?
- The company's debt-to-equity is 7.11, implying high leverage. If finance costs stay elevated and no cost-cutting is announced, margins may remain under pressure.
- What did the auditor say?
- The auditor issued an unmodified limited review opinion, meaning no material misstatements were found in the quarterly numbers.
- How does this quarter compare with the previous one?
- Net profit fell sequentially from ₹18.73 crore in the March 2026 quarter to ₹11.13 crore, a drop of 41%. Prior coverage noted the same 28% YoY decline.
Aditya Birla Money Ltd.
Latest quarter · Sep 2018
Leverage & growth
Story so far
All notes on BIRLAMONEY →- 14 Jul 2026 · 7:42 PM IST Aditya Birla Money profit slips 28% as finance costs surge
- 14d ago Aditya Birla Money profit falls 28% as finance costs surge