Edelweiss Financial Services (EDELWEISS) investor relations material

Executive summary

• Consolidated PAT grew 27% YoY to INR 680 Cr (pre-MI), with post-MI PAT at INR 547 Cr, despite exceptional items and market volatility in Q4.

• Operating business PAT was INR 520 Cr, excluding exceptional items; adjusted PAT grew 17% YoY.

• Customer reach expanded 31% YoY to nearly 14 million, and customer assets rose 11% YoY to INR 2.4 trillion.

• Strong balance sheet with net worth of INR 5,944 Cr, net debt of INR 10,430 Cr, and surplus liquidity of INR 6,500 Cr.

• Dividend of INR 1.50 per share recommended, subject to AGM approval.

Financial highlights

• Alternative asset management FPAUM grew 32% YoY to INR 44,710 Cr; mutual fund equity AUM up 25% YoY to INR 78,000 Cr.

• MSME disbursements increased 200% YoY to INR 1,051 Cr; housing finance disbursements up 27% YoY to INR 2,171 Cr.

• General insurance GWP up 28% YoY to INR 1,294 Cr; life insurance AUM up 11% YoY to INR 10,425 Cr.

• Asset reconstruction recoveries reached INR 8,590 Cr, up 50% YoY.

• Mutual fund SIP book exceeded INR 600 Cr, up 58% YoY.

Outlook and guidance

• Insurance businesses targeted to reach breakeven in FY 2027, with combined losses reduced by 23% over two years.

• Plan to reduce corporate debt below INR 3,000 Cr in 12–18 months, supported by stake sales, dividends, and asset monetization.

• Mutual fund equity AUM expected to grow at 18–20% annually; PAT margin targeted to rise from 6 to 10 basis points by 2030.

• MSME lending to remain in growth mode, with profitability expected in 18–24 months and ROE stabilizing at 10% in two years.

• Focus on scaling asset management, improving RoE in credit businesses, and capital-efficient growth.