Edelweiss Financial Services (EDELWEISS) Q2 24/25 earnings summary

Executive summary

• Consolidated PAT grew 45% year-over-year to INR 110 crores for Q2 FY25; ex-insurance PAT was INR 163 crores.

• Customer base expanded 45% YoY to 9.1 million; customer assets rose 12% YoY to INR 2.3 trillion.

• Net debt reduced by INR 2,250 crores YoY, reflecting a focus on deleveraging.

• The business operates across asset management, insurance, credit, and corporate debt, with seven diversified businesses.

• Balance sheet remains robust with net worth at INR 6,386 crores and liquidity of INR 4,000 crores.

Financial highlights

• EAAA (alternative asset management) ARR AUM grew 13% YoY to INR 44,900 crores; PAT up 28% YoY to INR 58 crores.

• Mutual fund equity AUM up 73% YoY to INR 59,200 crores; now the 13th largest AMC.

• Zuno General Insurance GWP up 27% YoY to INR 243 crores; losses declined 66% YoY.

• Asset Reconstruction recovered INR 1,526 crores in the quarter; net D/E improved to 0.2x.

• NBFC wholesale book reduced by 34% YoY to INR 3,750 crores; GNPA at 2.47%.

Outlook and guidance

• Insurance businesses targeted to reach accounting breakeven by FY 2027; potential for earlier breakeven if IFRS is implemented.

• EAAA stake sale or IPO planned within the next 2-3 quarters; mutual fund stake sale to follow within 18 months.

• Focus on reducing corporate debt and improving ROE in credit businesses.