Aditya Birla Money Ltd (BIRLAMONEY)
🎯 Key Takeaways
- Aditya Birla Money Ltd is navigating a mature phase within the financial services sector, characterized by stable but modest growth and persistent margin pressure. Despite a high P/E of 74.
- Revenue grew 2.3% QoQ to ₹43 in Q2FY19.
- ⚠️ 1) Persistent margin compression despite flat revenue growth raises concerns about cost management and pricing power. 2) High leverage (D/E of 4.97) c
- Market Cap
- ₹653
- P/E Ratio
- 68.0
- P/B Ratio
- 14.60
- ROE
- 5.1%
- ROCE
- 12.4%
- Debt/Equity
- 4.97
- Promoter
- 73.5%
📖 The Story
Aditya Birla Money Ltd is navigating a mature phase within the financial services sector, characterized by stable but modest growth and persistent margin pressure. Despite a high P/E of 74.5 and ROE of 21.3%, the company's recent financial performance shows declining profitability and limited revenue expansion, suggesting limited reinvestment opportunities or pricing pressures in its core brokerage and distribution business.
📰 What's Happening
Management has focused on governance and capital structure enhancements, including reappointing Non-Executive Director Gopi Krishna Tulsian at the 30th AGM on July 30, 2026, and approving an increase in authorized share capital. Crisil has reaffirmed the A1+ rating for Commercial Papers and raised the issuance limit to ₹2500 crores from ₹2350 crores, enhancing short-term funding flexibility. The board also approved unaudited Q1 FY26 results showing revenue of ₹13,145.75 lakhs and net profit margin of 8.51%, reflecting modest top-line growth but compressed margins.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Dec 2017 | Mar 2018 | Jun 2018 | Sep 2018 |
|---|---|---|---|---|
| Revenue | 43 | 44 | 42 | 43 |
| Operating Profit | 3 | 3 | 2 | 3 |
| OPM % | 7.0% | 6.0% | 3.9% | 5.8% |
| Net Profit | 3 | 2 | 2 | 2 |
| EPS | ₹0.51 | ₹0.41 | ₹0.36 | ₹0.42 |
The company's quarterly revenue has shown slight fluctuations without a clear upward trend, while profitability has declined, with net profit margin falling to 8.51% in Q1 FY26 from prior levels. This suggests that cost increases are outpacing revenue growth, potentially due to operational investments or competitive pressures. The flat revenue in recent quarters, coupled with rising expenses, indicates limited pricing power or demand stagnation in its brokerage franchise.
🔮 Management Outlook & What's Next
Management has not provided explicit forward guidance on revenue or margin expectations in the latest filings. However, the reaffirmation of the A1+ CP rating and increased issuance capacity signal confidence in short-term liquidity and ongoing access to capital markets. The board's actions at the AGM reflect a focus on governance continuity and capital flexibility rather than aggressive growth initiatives.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2017 | Mar 2018 | Mar 2018 | Mar 2019 |
|---|---|---|---|---|
| Equity Capital | 16 | 6 | 16 | 6 |
| Reserves | 27 | 39 | 32 | 11 |
| Borrowings | 35 | 222 | 99 | 269 |
| Total Liabilities | 286 | 535 | 369 | 495 |
| Fixed Assets | 0 | 7 | 0 | 3 |
| Investments | 0 | 24 | 5 | 0 |
| Total Assets | 286 | 535 | 369 | 495 |
The balance sheet shows a significant rise in borrowings to ₹269 crores as of March 2019, up from ₹99 crores in March 2018, while equity and reserves remain relatively stable. This suggests the company has been relying on debt to fund operations or investments, raising concerns about financial leverage. Despite this, total assets have fluctuated without consistent growth, indicating capital deployment may not be translating into asset base expansion or revenue uplift.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2018 |
|---|---|
| Operating | -174 |
| Investing | -23 |
| Financing | +188 |
| Net Cash Flow | -10 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 73.5% | 73.5% | 73.5% | 73.5% |
| FII | 0.1% | 0.0% | 0.0% | 0.1% |
| DII | 0.1% | 0.0% | 0.0% | 0.0% |
| Public | 22.2% | 22.4% | 22.6% | 22.4% |
| # Shareholders | 43,686 | 43,087 | 42,166 | 42,163 |
Institutional investor holdings (FII and DII) remain extremely low, with FII at 0.08% in Q1FY27 and DII at 0% in recent quarters, indicating minimal institutional interest. Promoter holding remains stable at 73.53% with no signs of dilution or selling. The small public float and high promoter stake suggest limited market liquidity and potential governance concentration risk.
⚖️ Peer Comparison — Stock/ Commodity Brokers
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| GROWW | 1.15 L Cr | 46.1 | 33.9% | — | 0.02 |
| MOTILALOFS | 60,702 | 30.6 | 11.9% | — | 1.65 |
| 360ONE | 42,519 | 33.6 | 11.5% | — | 1.68 |
| NUVAMA | 29,932 | 14.1 | 21.9% | — | 2.25 |
| ANGELONE | 25,505 | 4.7 | 13.7% | — | 1.29 |
| PRUDENT | 13,134 | 53.6 | 37.9% | — | 0.00 |
| IIFLCAPS | 10,776 | 18.7 | 20.4% | — | 0.59 |
| ARSSBL | 3,156 | 19.8 | 16.4% | — | 0.62 |
| MONARCH | 2,783 | 15.4 | 24.8% | — | 0.03 |
| GEOJITFSL | 2,190 | 30.2 | 8.6% | — | 0.05 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Persistent margin compression despite flat revenue growth raises concerns about cost management and pricing power. 2) High leverage (D/E of 4.97) combined with modest asset growth suggests potential strain on financial flexibility. 3) Extremely low institutional ownership and thin public float may lead to price volatility and limited investor interest. 4) The company's reliance on short-term CP funding, though currently rated A1+, could become a vulnerability if market sentiment shifts.
📋 Recent Filings
- Announcement2026-09-28Aditya Birla Money announced that its trading window closes on October 1, 2026, covering all directors and employees until 48 hours after the Septembe…
- 🟡 Board Meeting2026-09-24Aditya Birla Money announced the appointment of Rajesh Palviya as Head of Technical & Derivative Research effective September 24, 2026, following boar…
- 🔴 Announcement2026-07-30Aditya Birla Money announced that Crisil has reaffirmed its A1+ rating for Commercial Papers, now allowing an enhanced issuance capacity of **₹2500 cr…
- 🟡 Board Meeting2026-07-30Aditya Birla Money held its 30th Annual General Meeting on July 30, 2026 via video conference, approving audited FY2026 financial statements, reappoin…
- 🟡 Board Meeting2026-07-14The board approved unaudited Q1 FY26 results showing revenue of **₹13,145.75 lakhs**, profit after tax of **₹1,112.74 lakhs**, and net profit margin o…
- share transfer2026-07-09Aditya Birla Money Limited received a SEBI-mandated confirmation certificate from its RTA, Cameo Corporate Services Limited, for the quarter ended Jun…
- 🔴 annual report2026-07-08Aditya Birla Money disclosed its FY2025-26 Annual Report via a web link for shareholders who have not registered their email addresses, urging them to…
- 🔴 annual report2026-07-07Aditya Birla Money Limited announced its 30th Annual General Meeting on July 30, 2026, via video conferencing, with shareholders voting remotely from …
- Financial Results2026-06-26Aditya Birla Money Limited announced that its trading window will close on July 1, 2026, and remain closed until 48 hours after the quarterly results …
- 🟡 Board Meeting2026-06-25Aditya Birla Money's board approved increasing authorized share capital from ₹33 crore to ₹333 crore by issuing 10 million new equity shares and 2.9 m…
🧠 Analyst's Read
Aditya Birla Money appears to be a capital-efficient but stagnant business with limited growth visibility, where profitability is under pressure and financial leverage remains elevated. Investors should monitor upcoming quarterly results for signs of margin stabilization or revenue acceleration, as well as any shifts in institutional interest or changes in capital allocation strategy.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-29.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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