Edelweiss Financial Services (EDELWEISS) Q4 25/26 earnings summary

Executive summary

• Consolidated PAT grew 27% YoY to INR 680 Cr (pre-MI), with post-MI PAT at INR 547 Cr, despite exceptional items and market volatility.

• Operating business PAT at INR 520 Cr, with adjusted PAT up 17% YoY; customer reach expanded 31% YoY to 14 million and customer assets rose 11% YoY to INR 2.4 trillion.

• Strong balance sheet with net worth of INR 5,944 Cr, net debt of INR 10,430 Cr, and surplus liquidity of INR 6,500 Cr.

• Dividend of INR 1.50 per share recommended, subject to AGM approval.

• Board approved audited results with unmodified auditor opinion; new independent director appointed, and one resignation due to health reasons.

Financial highlights

• Alternative asset management FPAUM grew 32% YoY to INR 44,710 Cr; mutual fund equity AUM up 25% YoY to INR 78,000 Cr.

• MSME disbursements tripled YoY to INR 1,051 Cr; housing finance disbursements up 27% YoY; GI business GWP up 28%; LI AUM up 11% to over INR 10,425 Cr.

• ARC recoveries reached INR 8,590 Cr, up 50% YoY, reducing risk and returning capital to banks.

• March market volatility impacted consolidated results by INR 40–50 Cr.

• EPS (basic) for FY26 was INR 7.23, up from INR 5.89 in FY25.

Outlook and guidance

• Insurance businesses targeted to breakeven by FY27, with combined losses reduced by 23% over two years.

• Continued focus on scaling profits in asset management, improving RoE in credit businesses, and reducing corporate net debt below INR 3,000 Cr within 12–18 months.

• MSME business in growth mode, with profitability expected in 18–24 months and ROE stabilizing at 10% in two years.

• Mutual fund equity AUM targeted to grow at 18–20% annually; cost-income ratio to improve to 45–50% over three years.

• Customer base grew 31% YoY to nearly 14 million; customer assets up 11% YoY to INR 2.4 Tn.