Fedbank Financial Services (FEDFINA) investor relations material

Executive summary

• Q2 FY27 AUM rose 36.6% YoY to ₹22,035 crore; disbursements increased 28.3% to ₹6,676 crore, and PAT grew 63.1% to ₹130.8 crore.

• Management priorities include secured-book growth, scaling gold loans and LAP, increasing core income, improving cost efficiency and keeping credit costs below 1%.

• Joint statutory auditors issued an unmodified limited-review conclusion on unaudited Q2 and H1 results.

Financial highlights

• Core NII was ₹404.8 crore, up 5.2% QoQ and 40.9% YoY; net interest income was ₹403.7 crore, up 37.4% YoY.

• Net total income was ₹431.5 crore, up 33.9% YoY; operating profit reached ₹205.1 crore, up 47.5% YoY, and PAT was ₹130.8 crore, up 63.1%.

• Q2 revenue from operations was INR 71,941 lakh versus INR 53,538 lakh; PBT was INR 17,800 lakh versus INR 10,747 lakh, and net profit was INR 13,075 lakh versus INR 8,015 lakh.

• H1 FY27 revenue from operations was INR 1,38,934 lakh versus INR 1,05,198 lakh; net profit was INR 24,513 lakh versus INR 15,516 lakh.

• Q2 basic EPS was INR 3.56 versus INR 2.15; H1 basic EPS was INR 6.54 versus INR 4.16, not annualised.

Outlook and guidance

• FY27 AUM growth guidance remains 20%–25%, assuming flat gold prices; higher gold prices could support growth above that range, while tonnage expansion supports the outlook.

• Targets are 3% ROA and 18% ROE; management said the ROA target may be reached sooner than previously expected.

• Q3 and Q4 are expected to benefit from seasonality, with stronger gold tonnage and continued AUM growth; yield decisions remain flexible.

• At least 150 branches are planned for H2; ST LAP disbursements and yields are expected to improve in Q3, forecast as its best quarter in eight or nine quarters.

• Retail credit growth is projected at a 14%–16% CAGR; management cited MSME lending and household gold-credit gaps as growth opportunities.