Fedbank Financial Services (FEDFINA) Q1 25/26 earnings summary

Executive summary

• AUM rose 19.0% YoY to ₹15,697 crore; disbursements grew 18.6% to ₹5,933 crore, with 96.1% of AUM secured.

• PAT increased 6.8% YoY to ₹75 crore; operating profit declined 0.5% as direct-assignment income fell.

Financial highlights

• Total income was ₹520.4 crore, up 6.0% YoY; net interest income rose 7.4% to ₹268.2 crore and core NII increased 20.0% to ₹273.6 crore.

• Net total income was ₹302.4 crore, up 4.8%; operating profit was ₹128.2 crore, down 0.5%, while PBT grew 7.2% to ₹100.4 crore.

• Disbursals totaled ₹5,933 crore, up 18.6% YoY; AUM accretion was ₹2,509 crore.

• Operating expenses rose 9% YoY; Q1 origination costs were lower due to seasonally reduced business volumes and cost rationalization.

Outlook and guidance

• FY26 credit cost targeted at 1% ±10 bps, including expected stress from residual business loans and ST LAP; flows are expected to stabilize by year-end.

• FY26 NIMs and spreads expected to remain range-bound; net total income anticipated near Q4 FY25 levels, within ±10 bps, with cost-to-income broadly stable.

• Plan to open 150 gold branches in FY26; gold AUM growth guidance is 25% YoY on the existing network, with new branches adding growth.

• Gold expected to reach 45%-48% of portfolio mix, with mortgages making up the balance; ST LAP recovery and MT LAP growth are expected to continue.