Aditya Birla Capital shares rallied over 3.5% in intraday trading on Thursday, August 20, following the announcement of its strategic entry into the gold loan business segment. The stock rose to the day's peak of ₹410.20 on the National Stock Exchange (NSE), up 3.58% from its previous closing price of ₹396. As of 2:15 PM, shares were trading 2.90% higher at ₹407.50, significantly outperforming NSE's Nifty 50 index which was up 0.66% at 24,235. The stock has demonstrated strong momentum with gains of 12.7% so far in 2026 and 44% growth over the past year, reflecting robust investor confidence in the company's strategic expansion plans.
Aditya Birla Capital Limited has announced its strategic entry into the gold loan business segment as a natural extension of its secured lending portfolio. The company plans a phase-wise rollout of 200-300 dedicated gold loan branches by March 2027 across high potential markets in the country. Latest reports indicate the company has now targeted opening 1,000 gold loan branches within the next three years, significantly expanding its initial rollout plans to build a pan-India network across high-potential markets. The gold loan offering will operate under the company's Non-Banking Financial Company (NBFC) portfolio and complement its existing retail and MSME lending franchise.
The company has outlined comprehensive plans to provide customers with a seamless borrowing experience through a combination of dedicated branch-led service and omnichannel digital capabilities. The gold loan offering will cater to customers across urban and semi-urban markets, serving existing customers within the Aditya Birla Capital ecosystem and expanding reach to new customers through an integrated distribution network of physical branches and digital platforms. The service will be supported by transparent pricing, secure handling of pledged gold and swift loan disbursals, positioning the company to compete effectively in the evolving gold loan market. Rakesh Singh, Executive Director and CEO - NBFC at Aditya Birla Capital Limited, emphasized building the Gold Loan business from ground up with focus on governance, prudent risk management, operational excellence, and customer-first approach, leveraging the company's extensive distribution network and digital capabilities to deliver superior customer experience.
The entry comes at an opportune time as elevated gold prices, supported by safe-haven demand linked to the Iran war, have increased the value of jewellery pledged as collateral, boosting growth prospects for India's gold loan industry. According to HDFC Securities, gold loans business has witnessed phenomenal growth with 34% CAGR during FY21-FY26, driven by a surge in gold prices with 24% CAGR. This has led to a "gold rush" among lenders with existing players increasing focus on gold loans and ramping up their distribution, while new players including diversified NBFCs are in various phases of launching their gold loan products. The business will serve urban and semi-urban customers through a combination of physical branches and digital platforms, with the company aiming to provide customers with a transparent, flexible and collateral-backed credit solution.
The business will now compete with established gold loan lenders including Manappuram Finance and Muthoot Finance as it enters the market. Aditya Birla Capital joins other NBFCs like Tata Capital and Godrej Capital, which have also announced plans to enter the gold loan business. According to The Economic Times, Aditya Birla Capital is the latest non-banking financial company to announce a foray into the segment, following the entry of Tata Capital and Godrej Capital merely a month ago. Rakesh Singh, Executive Director and CEO - NBFC at Aditya Birla Capital Limited, stated that gold loans are witnessing strong structural growth in India, and the company's entry into this segment is a natural extension of their secured lending strategy. He emphasized building the Gold Loan business from ground up with focus on governance, prudent risk management, operational excellence, and customer-first approach, leveraging the company's extensive distribution network and digital capabilities to deliver superior customer experience.
Aditya Birla Capital's NBFC business demonstrates robust growth momentum, with NBFC AUM growing 27% year-on-year to ₹1.6 lakh crore with retail and SME comprising approximately 68% of AUM. The company currently offers a suite of secured and unsecured loans for individuals, small businesses and corporates. For the latest quarter, the company's Net Interest Income (NII) had grown by 27.9% from last year to ₹2,377 crore, while net profit grew by 40% to ₹1,175 crore from ₹839 crore last year. Total business loans at the end of the quarter grew by 31% to ₹95,099 crore, with asset quality remaining broadly stable on a sequential basis and improving from the same quarter last year.
The company's entry into gold loans positions it alongside other diversified NBFCs entering this high-growth segment, with the sector experiencing significant expansion driven by rising gold prices and increasing adoption. As per Business Standard, the company's NBFC arm's assets under management (AUM) grew 27% year-on-year to ₹1.6 lakh crore, with retail and SME comprising approximately 68% of AUM. The stock's strong performance reflects investor confidence in the company's strategic diversification into the fast-growing gold loan segment, with the company well-positioned to capitalize on the structural growth in India's gold loan market backed by Aditya Birla Group's legacy of trust and responsible stewardship.
