Edelweiss Financial Services (EDELWEISS) Q2 25/26 earnings summary

Executive summary

• Consolidated PAT for H1 FY26 rose 25% YoY to $22 Mn (INR 278 Cr), with underlying business PAT up 15% YoY and customer reach expanding 31% to 12 million.

• Net worth stands at $635 Mn (INR 5,636 Cr), with net debt reduced by $253 Mn (INR 2,250 Cr), down 17% YoY.

• Strategic focus on scaling profits, reducing corporate debt, and executing stake sales in key subsidiaries, including a planned EAAA IPO and Mutual Fund stake sale.

• Board approved unaudited financial results and a public issue of NCDs up to INR 1,000 Cr.

• Auditors issued an unmodified review report on both consolidated and standalone results.

Financial highlights

• H1 FY26 underlying business profit grew 15% YoY; consolidated PAT (post MI) for Q2 FY26 up 17% YoY to INR 128 Cr.

• Alternative Asset Management AUM grew 14% YoY to $7,372 Mn (INR 65,460 Cr); Mutual Fund equity AUM up 30% YoY to $8,683 Mn (INR 77,100 Cr).

• MSME and Housing Finance disbursements increased 2.5x and 2x YoY, respectively, in Q2; Housing Finance AUM up 15% YoY to $518 Mn (INR 4,598 Cr).

• Asset Reconstruction recovered $138 Mn (INR 1,225 Cr) in Q2; retail share in capital employed rose to 25% from 14% YoY.

• General Insurance GWP up 7% YoY; Life Insurance gross premium INR 503 Cr in Q2; insurance losses declined by 13% and 48% YoY for general and life, respectively.

Outlook and guidance

• Insurance businesses on track to break even by FY27, with combined losses for H1 reduced by 55% over two years.

• EAAA IPO targeted for April 2026 to institutionalize the alternatives segment and enable inorganic growth.

• Corporate net debt targeted to be near zero in three years, supported by stake sales and cash inflows.

• Nido and ECL Finance disbursement run rates targeted at INR 2,000-2,500 Cr and INR 1,500 Cr, respectively.

• Life and general insurance businesses remain committed to breakeven by FY2027 despite GST headwinds.