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

Executive summary

• AUM rose 19.0% YoY to ₹15,697 crore; 96.1% was secured, with mortgage and gold lending driving growth.

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

• Priorities included secured lending, gold and LAP growth, stronger collections, disciplined capital allocation, and reduced reliance on direct assignment income.

Financial highlights

• Total income was ₹520.4 crore, up 6.0% YoY; net interest income rose 7.4% to ₹268.2 crore, while 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 rose 7.2% to ₹100.4 crore and PAT rose 6.8% to ₹75 crore.

• Revenue from operations was ₹51,971 lakh versus ₹47,731 lakh YoY; total comprehensive income was ₹8,201 lakh versus ₹5,423 lakh.

• Disbursals reached ₹5,933 crore, up 18.6% YoY; Q1 AUM accretion was ₹2,509 crore.

• Operating expenses rose 9% YoY; lower originations and origination-related incentives, alongside cost rationalization, shaped Q1 costs.

Outlook and guidance

• FY26 credit cost guidance remains 1% ±10 bps; short-term flows are expected to persist but stabilize by year-end.

• FY26 net total income is expected near Q4 FY25 levels, within ±10 bps; cost-to-income is expected to remain near Q4 levels as branch investment offsets cost reductions.

• Gold AUM growth guidance is 25% YoY on the current branch network; 150 gold branches are planned for FY26, with substantial openings in Q2.

• Gold is expected to remain 45%-48% of the portfolio, with mortgage making up the balance; ST LAP disbursals are expected to pick up from Q1 levels.

• The residual ₹270 crore business-loan book is expected to decline to ₹100-₹120 crore by March 2026.