Edelweiss Financial Services (EDELWEISS) Q3 25/26 earnings summary

Executive summary

• Consolidated PAT for nine months ended Dec 2025 rose 45% YoY to ₹549 Cr, with Q3 PAT up 74% YoY to ₹270 Cr, reflecting steady growth across key business segments.

• Customer base expanded 31% YoY to nearly 13 million, and customer assets rose to ₹2.4 Tn.

• Carlyle announced an INR 2,100 Cr investment in the housing finance subsidiary, acquiring a 45% stake, with Aditya Puri also participating.

• EAAA IPO process underway, with DRHP filed in January and listing expected within 4-6 months, aiming to unlock value and reduce corporate debt.

• Mutual fund business saw a 10% stake sale to WestBridge, with another 5% to be sold by June, supporting capital structure and growth.

Financial highlights

• Pre-MI consolidated PAT for nine months: ₹549 Cr (up 45% YoY); post-MI PAT: ₹459 Cr (up 56% YoY).

• Alternative asset management FPAUM grew 33% YoY to ₹41,920 Cr; mutual fund equity AUM up 33% YoY to ₹83,000 Cr.

• MSME disbursements up 84% and housing finance up 38% YoY for the nine months.

• General insurance gross premium grew 47% YoY; life insurance gross premium up 15% YoY.

• Insurance business losses reduced by 29% (Life) and 24% (General) YoY over nine months.

Outlook and guidance

• Insurance businesses are on track to break even by FY27, with combined losses reduced by 39% over two years.

• Corporate net debt reduced by 15% YoY to ₹6,520 Cr, with a target to reduce to below ₹3,000 Cr in 18 months.

• Focus on scaling up profits, insurance breakeven, and further deleveraging.

• Alternative asset management aims to maintain 21% annual AUM growth, with regular fund launches and expansion into new strategies.

• Mutual fund equity AUM expected to grow faster than industry average, driven by expansion in tier 2 and 3 cities.