Synopsis:
Aditya Birla Money fell sharply after its Q2 FY26 net profit more than halved to Rs 10.14 crore, down 62% YoY, mainly due to weak conversion of topline growth. Total expenses rose slightly to Rs 93 crore, putting further pressure on profitability despite a modest increase in interest income.
The shares of this leading stockbroker under the group name of Aditya Birla are in focus after reporting a poor financial performance in the second quarter. In this article, we will dive more into the details.
With a market capitalization of Rs 927 crore, the shares of Aditya Birla Money Ltd made a day low of Rs 161.15 per share, down by 7 percent from its previous day closing price of Rs 173.90 per share. Over the past five years, the stock has delivered a positive return of 271 percent, outperforming the NIFTY 50’s return of 114 percent.
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Q2 Highlights
Aditya Birla Money reported an interest income of Rs 60.22 crore in Q2 FY26, a growth of 13 percent as compared to Rs 53.22 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew slightly by 9 percent from Rs 55.37 crore.
On a year-on-year basis, the company’s Broking segment revenue declined to Rs 83.06 crore in Q2 FY26 from Rs 103.48 crore in Q2 FY25, reflecting a slowdown in trading activity or client volumes. The Wholesale Debt Market segment remained largely stable at Rs 22 crore. The Other segment contributed Rs 0.75 crore, almost unchanged from Rs 0.73 crore last year.
On the expenses front, it reported total expenses of Rs 93 crore in Q2 FY26, a growth of 2 percent as compared to Rs 91.12 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew slightly by 0.63 percent from Rs 92.32 crore.
Regarding its profitability, it reported a net profit of Rs 10.14 crore in Q2 FY26, a decline of 62 percent as compared to Rs 26.70 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it declined by 34 percent from Rs 15.37 crore. This weak growth conversion in its topline (three segments) has impacted a larger part of the company’s profitability.
Aditya Birla Money Limited provides a variety of financial services in India, such as stock broking, portfolio management, and depository services. It deals in equities, derivatives, currencies, and commodities on principal exchanges such as NSE, BSE, MCX, and NCDEX. The company offers different trading platforms like TradeLite, Mobile Invest, AB TRADE, and Express Trade. It also delivers mutual funds, ETFs, insurance, loans, and investment products such as NPS, SGBs, and IPOs.
Written by Satayjeet Mukherjee
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