Edelweiss Financial Services (EDELWEISS) Q4 24/25 earnings summary

Executive summary

• FY25 consolidated PBT grew 83% YoY to INR 802 Cr; ex-insurance PAT at INR 545 Cr; Board recommended INR 1.5 dividend per share.

• Customer base expanded by 3 million to 10 million; consolidated PAT after minority interest at INR 399 crore.

• Significant progress in pivoting to an investment company model, scaling independent businesses, and reducing debt.

• Consolidated revenue for FY25 reached INR 9,519 Cr; Q4 revenue at INR 2,343 Cr.

• Unmodified audit opinions received for both consolidated and standalone results.

Financial highlights

• Mutual fund business profit grew 40% YoY; EAA/EAAA PAT up 31% YoY to INR 230 Cr; ARC PAT up 8% YoY; INR 5,730 Cr recovered.

• Zuno General Insurance GWP up 19% YoY to INR 1,012 Cr; losses halved; Life Insurance gross premium up 8% YoY to INR 2,086 Cr, losses reduced by 40%.

• NBFC wholesale book reduced by 40% YoY to INR 2,500 Cr; total NBFC borrowing below INR 3 billion; asset quality healthy with GNPA at 2.2-2.66%.

• Life insurance business turned profitable in Q4, with INR 230 million PAT for the quarter.

• Revenue for the year at INR 5,881 Cr, down 3% YoY; operating expenses down 7% YoY.

Outlook and guidance

• Targeting 20-25% annual growth in value creation for most businesses over the next 5-10 years.

• Insurance businesses expected to reach breakeven in 18-24 months; general insurance breakeven in 5-6 quarters, life insurance in 8 quarters.

• SME lending to become the primary focus, with the SME book expected to surpass wholesale by FY26.

• Mutual fund and equity AUM expected to grow at 20-25% annually, with commensurate revenue and PAT growth.

• Commitment to further reduce corporate net debt and pursue EAAA business listing.