NBFC Stock in which the Mutual Funds have increased their stake consistently

Synopsis:- The stock delivered 104% returns in one year, supported by mutual fund holdings rising from 2.1% to 7.7% in two years. Structural merger benefits, 29% loan book growth, 10% AUM growth, and improving operating margins underpin sustained institutional confidence despite near-term profit volatility.

India’s NBFC sector plays a vital role in credit delivery, especially to retail, MSMEs, and underserved segments. In FY2025, total credit reached  Rs 48 trillion, with balance sheets expanding 18.9% to  Rs 61 lakh crore by March 2025. NBFC credit to GDP rose to 26%, outpacing banks at a 13.9% CAGR over FY20-FY25, fueled by retail lending growth. With around 9,400 registered entities, the sector drives financial inclusion amid robust demand.

Aditya Birla Capital Ltd closed at Rs 361.70, up 0.84% from the previous session, with a market capitalisation of  Rs 94,671.45 crore. Despite the mild correction, the stock has delivered strong returns, gaining 103% over the past year and 34% in the last six months, reflecting sustained investor confidence and a robust medium-term growth trajectory.

Growth Drivers & Momentum

One of the key drivers behind the exceptional returns in 2025 could be the amalgamation of Aditya Birla Finance Limited with Aditya Birla Capital Ltd. Announced in March 2024 and completed on 1 April 2025, the merger simplified the group structure by reducing legal entities and enabling better capital allocation and operational efficiencies.

The amalgamation created a stronger operating NBFC with direct access to capital, improved financial flexibility, and consolidated business operations. Synergies from unified management, streamlined compliance, cost rationalisation, and pooled expertise are expected to support long-term sustainable growth.

Secondly, Aditya Birla Capital Ltd reported modest top-line growth over the past year. Revenue rose from  Rs 10,322 crore in Sep 2024 to  Rs 10,595 crore in Sep 2025, a ~2.6% increase. Operating profit improved from  Rs 3,718 crore to  Rs 4,001 crore, reflecting stronger core operating performance despite a challenging financial environment.

Operating efficiency strengthened, with OPM improving from 36% to 38%, indicating better cost control and operating leverage. However, net profit declined from  Rs 1,021 crore to  Rs 882 crore, down nearly 14% YoY, largely due to higher interest costs and normalisation of other income, even as operating fundamentals remained resilient.

Aditya Birla Capital Ltd reported strong business momentum in Q2 FY26, with its lending portfolio rising 29% YoY to ₹1.78 lakh crore and AUM growing 10% YoY to ₹5.50 lakh crore. Insurance segments performed well, as life insurance first-year premiums increased 19% and health insurance GWP surged 31% in H1 FY26, reflecting broad-based growth across core financial verticals.

Lastly, Aditya Birla Capital Ltd has witnessed strong domestic institutional interest, with mutual fund holdings rising from 2.1% in Dec 2023 to 7.7% in Dec 2025, an increase of 5.6 percentage points in two years. Holdings crossed 5.8% by Jun 2025 and 6.5% by Sep 2025, reflecting sustained accumulation and growing long-term confidence in the company’s business outlook.

Aditya Birla Capital Ltd is a diversified Indian financial services company with a strong presence across lending, asset management, life and health insurance, and wealth management. Backed by the Aditya Birla Group, it serves retail, MSME, and corporate customers, leveraging scale, digital capabilities, and an integrated platform to drive long-term growth.

Aditya Birla Capital Ltd remains structurally strong despite short-term profit pressure. The merger-led simplification, steady operating improvement, robust lending and insurance growth, and rising institutional ownership underline durable fundamentals, supporting a positive medium-term outlook backed by scale, diversification, and improving efficiencies.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post NBFC Stock in which the Mutual Funds have increased their stake consistently appeared first on Trade Brains.