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Aditya Birla Capital climbs higher on strong Q3 growth
MUMBAI: In a world where financial markets can often feel like a game of snakes and ladders, Aditya Birla Capital Limited (ABCL) appears to be exclusively climbing the latter. The conglomerate’s unaudited financial results for the quarter ended 31 December 2025 reveal a company not just “checking the boxes,” but redrawing them entirely. With consolidated revenue leaping 30 per cent year-on-year to Rs 14,181 crore, the firm has proven that its diversified engine is firing on all cylinders.
Lending a helping hand (and growing the bottom line)
The star of the show remains the company’s lending arm. The total lending portfolio, comprising its Non-Banking Financial Company (NBFC) and Housing Finance (HFC) segments, grew by a robust 30 per cent year-on-year, reaching a staggering Rs 1,90,386 crore.
. NBFC segment: The NBFC portfolio hit Rs 1,48,182 crore, up 24 per cent. Profits for this segment followed suit, rising 29 per cent to Rs 772 crore.
. Housing finance: The real “house party,” however, was in the HFC division. Assets under management (AUM) rocketed by 58 per cent to Rs 42,204 crore, while profits more than doubled, surging 111 per cent to Rs 177 crore.
Insuring the future
It wasn’t just the lending books that looked healthy. The insurance and asset management sectors also flexed their muscles:
. Health Insurance: Gross written premiums jumped by 39 per cent in the first nine months of the financial year, reaching Rs 4,651 crore.
. Life Insurance: Individual first-year premiums grew by 19 per cent, while the Net VNB (Value of New Business) margin improved by 380 basis points to 14.6 per cent.
. Asset Management: Total Assets Under Management (AUM) across the AMC, Life, and Health segments reached a combined Rs 5,98,166 crore, a 19 per cent increase.
Adding more fuel to the fire, the Housing Finance arm (ABHFL) recently raised Rs 2,750 crore in growth capital from Advent International. This deal, which values the housing unit at a post-money Rs 19,250 crore, leaves Aditya Birla Capital with a commanding 85.7 per cent stake, perfectly positioning the unit for its next phase of expansion into the prime and affordable housing segments.
Efficiency and quality: The “Breezy” reality
Despite the rapid growth, ABCL hasn’t lost its grip on quality. The NBFC’s credit quality remains pristine, with Gross Stage 3 (GS3) assets dropping by 76 basis points year-on-year to just 1.51 per cent. In the housing sector, asset quality is even tighter, with GS3 sitting at a mere 0.54 per cent.
Through its “One ABC” omnichannel strategy, the company now serves over 9.3 million customers via its ABCD-D2C platform, proving that digital transformation is more than just a buzzword.
As the sun sets on Q3 FY26, Aditya Birla Capital stands tall with a reported profit after tax of Rs 945 crore, though its “core” performance, excluding one-offs like new labour code impacts, was even higher at Rs 983 crore. For investors, it seems the capital isn’t just “Birla,” it’s brilliant.
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Microsoft faces worst quarter since 2008 financial crisis
Cloud giant battles soaring AI costs and fierce competition from nimble startups.
MUMBAI: When the tech titan starts looking a little wobbly, even the Magnificent Seven can feel the tremors because Microsoft is currently starring in its own sequel, “Clouds and Doubts.” Microsoft is on track for its worst quarterly performance since the 2008 global financial crisis, according to Bloomberg, as investors grow increasingly uneasy about rising capital expenditure and intensifying competition from nimble AI firms. The company has been pouring money into AI infrastructure, yet markets are questioning when these hefty investments will finally deliver stronger revenue growth.
At the same time, investors are shifting away from traditional software stocks amid fears that AI startups such as Anthropic and OpenAI are developing autonomous agents capable of replacing established products, including those from Microsoft. Jonathan Cofsky, portfolio manager at Janus Henderson Investors, noted growing concern that customers may bypass Microsoft and deal directly with AI vendors, potentially disrupting its core business and putting pressure on pricing and margins.
Microsoft’s stock has tumbled 25 per cent in the first quarter, putting it on course for its largest drop since a 27 per cent fall in the fourth quarter of 2008. It has also emerged as the weakest performer among the so-called Magnificent Seven technology stocks, while a broader index tracking the group has fallen 14 per cent over the same period. The shares slipped a further 1.7 per cent after markets opened on Friday, marking a potential fourth consecutive session of declines.
Cofsky pointed out that Microsoft has become more capital intensive and that improved investor confidence will hinge on assurances that software growth will not slow materially. Despite the sell-off, the stock is now trading at less than 20 times projected earnings over the next 12 months, its lowest valuation level since June 2016. Its valuation remains slightly above that of the S&P 500 Index, although it has recently traded at a discount to the broader benchmark for the first time since 2015.
Bloomberg data shows Microsoft’s capital expenditure, including leases, is expected to surge to $146 billion in fiscal 2026, up around 66 per cent from $88 billion in fiscal 2025. Spending is projected to climb further to $170 billion in fiscal 2027 and $191 billion in fiscal 2028, based on average estimates. Investors are growing cautious about such levels of spending without clearer signs of stronger growth.
Microsoft’s Azure cloud division has reported a slight slowdown in growth compared with the previous quarter, while its Copilot AI product has seen limited user traction, prompting internal changes aimed at improving performance. Ben Reitzes, an analyst at Melius Research, warned in a March note that Microsoft’s upside in Azure could be constrained as the company works to address challenges related to its AI models and Copilot offering, adding that these issues are unlikely to be resolved in the short term.
Of the 67 analysts covering Microsoft, 63 maintain buy ratings, three hold ratings and one a sell rating. The average 12-month price target of $592 implies a potential upside of more than 64 per cent, the highest on record based on data going back to 2009. The stock is also trading below its 200-day moving average by the widest margin since 2009.
Reitzes suggested the dominance of buy ratings may indicate complacency among analysts, while highlighting risks in Microsoft’s productivity and business processes segment as well as its More Personal Computing division. In contrast, Tal Liani of Bank of America reinstated coverage with a buy rating, citing durable multi-year growth prospects across cloud and AI. Jake Seltz, portfolio manager at Allspring Global Investments, maintained that Microsoft retains strong long-term value and that its AI strategy is likely to be validated over time, viewing near-term concerns as a potential opportunity for longer-term investors.
The report highlights a growing divergence in market sentiment, with optimism around long-term AI potential weighed against immediate execution risks and investor uncertainty. In the world of big tech, even the mightiest clouds can have silver linings but right now, Microsoft’s investors are scanning the horizon for clearer skies.
