Aditya Birla Capital reports 40% profit growth in Q1 and raises 400 billion rupees

The public sector bank Bank of India reported a significant increase in net profit in the first quarter of the financial year 27. Net profit reached 3,068 crore rupees, representing a growth of 36.23% compared to the same period last year, which resulted from healthy credit growth.

Quarterly Financial Performance

Net Interest Income (NII) for the reporting period increased by 12.61% year-on-year, amounting to 6,833 crore rupees compared to 6,068 crore rupees in the first quarter of financial year 26. However, the Net Interest Margin (NIM) slightly decreased to 2.52%, down from 2.55% the previous year.

Non-interest income reached 2,579 crore rupees, showing a year-on-year growth of 19.07%. This growth was driven by an increase in write-off recoveries (up by 89.13% to 609 crore rupees) and profits from foreign exchange operations (increased by 113.21% to 226 crore rupees), despite the profit from sale and revaluation of investments decreasing by 49.51% to 414 crore rupees.

Operational Expenses and Asset Quality

Operating costs were contained and increased by only 3.22% year-on-year, reaching 4,361 crore rupees. Personnel expenses increased by 8.64% to 2,603 crore rupees, but this was partially offset by a reduction in insurance and other expenses. The cost-to-income ratio sharply improved, falling to 46.33% from 51.31% the previous year.

Regarding asset quality, the Gross Non-Performing Assets (NPA) ratio improved to 1.81% from 2.92%, and the Net NPA ratio decreased to 0.51% from 0.75%. The provisioning coverage ratio strengthened to 93.83% from 92.94% the previous year. Furthermore, the slippage ratio improved to 0.24% from 0.33%, and credit costs decreased to 0.15% from 0.17%.

Bank Operations and Plans

Radjnish Karnataka, Managing Director of Bank of India, noted that in the current quarter, gross cash slippage amounted to about 1,800 crore rupees, while gross cash recovery reached approximately 1,900 crore rupees, meaning that recovery exceeded slippage.

In terms of business, global loans grew by 18.64% year-on-year, reaching 797,775 crore rupees. The growth was driven by an increase in retail loans by 20.60% to 166,170 crore rupees and a surge in RAM (Retail, Agriculture, MSME) segment loans by 19.75% to 392,833 crore rupees, which now constitute 58.30% of total domestic loans. Total deposits increased by 14.90% year-on-year, reaching 957,924 crore rupees, pushing the bank's total business beyond 17.55 lakh crore rupees, demonstrating a growth of 16.57%.

Bank of India has set a target to mobilize $1.2 billion in FCNR(B) deposits, having already attracted over $200 million. NRI communities in countries such as Canada, USA, UK, Singapore, Hong Kong, Japan, and Africa are showing interest. The bank operates in 15 countries, including 4 in Africa.

These deposits, currently valued at approximately 6.5%, are more advantageous than large deposits because they do not require maintaining CRR/SLR and have an RBI-managed swap. BoI expects the mobilization of these funds to help reduce the overall cost of deposits by replacing more expensive large deposits (approximately equivalent to 12,000–13,000 crore rupees) to finance credit growth.

The bank also plans to offer customers the option to use leverage against FCNR(B) deposits up to 9 times, offering this directly without third-party involvement. According to RBI timelines, the FCNR(B) leverage component should be ready by September 30, and related overseas borrowings are permitted until December 31. Separately, in accordance with RBI directives on external financing, the bank aims to attract approximately $2 billion by December 31 through Medium Term Notes (MTNs) and associated borrowing, subject to favorable market conditions.

Karnataka added that it plans to raise about $2 billion by December 31 through external borrowing and MTNs, and this is a target dependent on the market. The bank's Capital to Risk-weighted Assets Ratio (CRAR) improved to 18.69% as of June 2026, compared to 17.39% the previous year, with CET-1 capital standing at 15.97%. The bank's Board of Directors approved plans to raise up to 7,500 crore rupees in financial year 27 through Additional Tier 1 bonds (2,500 crore rupees) and Tier II bonds (5,000 crore rupees).

Real estate developer Sobha, based in Bengaluru, reported a significant increase in profit for the first quarter of fiscal year 2026-27 (Q1 FY27). The company's profit attributable to the holding company owners grew by more than threefold compared to the same period last year (YoY), reaching ₹50.84 crore. This growth was driven by increased revenue and a low base level in Q1 FY26, when profit stood at ₹13.62 crore.

Financial Performance and Expenses

The company's operating revenue in Q1 FY27 increased by 50.02% year-on-year, amounting to ₹1,278.15 crore. However, this figure fell below Bloomberg analysts' forecasts, which anticipated revenue of ₹1,771 crore and profit of ₹79.80 crore. The company's total expenses for the quarter reached ₹1,260.91 crore, which is 42.83% higher compared to the previous year. The rise in expenses was attributed to a threefold increase in land costs (including development rights) and associated overheads, totaling ₹681.61 crore.

Sales and Collection Dynamics

Quarter-over-quarter (QoQ), the company's revenue decreased by 35.70%, and profit declined by 44.63%. Previously, Sobha demonstrated a record quarterly sales volume of ₹3,656 crore, which was 75.87% higher than the previous year, thanks to the launch of three new projects. Sobha's share of the total sales volume also reached an all-time high of ₹2,992 crore, showing a 74.24% YoY growth. The average realization per quarter was ₹15,655, which is 8.75% higher year-on-year.

Management Comments and Development

Jagadish Nangneni, Managing Director of Sobha, noted that achieving the highest quarterly sales volume was a significant step forward for Sobha. He emphasized that this reflects deep customer trust in the brand, the dedication of the team, and the company's unique business model. The presence of a strong portfolio of future projects allows the company to maintain this momentum while focusing on operational excellence and disciplined growth to create long-term value for stakeholders.

Additional Quarterly Data

During the reporting period, Sobha's collections reached ₹1,924 crore, an 8% increase compared to the previous year. Sold area increased by 62% YoY, totaling 2.34 million square feet (msf). In Q1 FY27, the company launched 6.89 msf of sellable area across three projects in Gurugram and Bengaluru. Quarter-over-quarter, total sales volume grew by 79.28%, and Sobha's sales volume increased by 83.10% QoQ. Furthermore, as of Q1 FY27, Sobha maintained a positive net cash flow, with a net cash position (negative net debt) of ₹659 crore and a net debt to equity ratio of 0.14.