Aditya Birla Capital Ltd (ABCL) said it has subscribed to the equity shares of its wholly-owned subsidiary Aditya Birla Housing Finance Ltd (ABHFL) on a rights basis aggregating a cash consideration of about ₹250 crore.
ABCL has made the investment in ABHFL to fund its growth and improve its leverage ratio, it added.
“ABHFL has allotted the equity shares on 30 August 2025…The transaction is at “arm’s length”. Percentage shareholding of ABCL in ABHFL continues to remain at 100 per cent,” per ABCL’s regulatory filing.
The housing finance company’s loan portfolio grew by 70 per cent year-on-year to ₹34,605 crore as at June-end 2025.
Pankaj Gadgil, MD and CEO, ABHFL, in an analyst call, said: “During the quarter (Q1FY26), AUM (assets under management) growth is at ₹3,553 crore, versus ₹1,979 crore in Q1FY25. This growth has been well-balanced across both the prime and affordable segments.
“Our portfolio remains well-diversified with retail home loans at 55 per cent, loan against property at 30 per cent, and construction finance at 15 per cent. We expect to maintain the construction finance book within this range. Our average retail ticket size stands at ₹30 lakh, reflecting the granularity of the portfolio. As of today, we have crossed 1 lakh active retail customers.”
ABHFL’s gross NPAs (non-performing assets) improved from 1.60 per cent in June 2024 to 0.62 per cent in June 2025.
The share of NCDs in the company’s funding mix has increased from 27 per cent in Q1FY25 to 45 per cent in Q1FY26. Term loans correspondingly reduced from 37 per cent in Q1FY25 to 31 per cent in Q1FY26.
“Our cost of borrowing has improved by 11 bps q-o-q (quarter-on-quarter) and now stands at 7.69 per cent. In line with reduction in cost of borrowing, we have passed on a 15 bps rate cut to our retail customers, effective from July 2025,” Gadgil said.
Published on August 31, 2025
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