Fedbank Financial Services (FEDFINA) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 AUM reached ₹21,136 crore, up 34.7% YoY; disbursements were ₹6,760 crore, up 13.9% YoY.

• PAT rose 52.5% YoY to ₹114.4 crore; ROA was 2.6% and ROE was 15.4%.

• Gold loans led growth, while asset quality improved; management maintained FY27 growth, ROA and credit-cost guidance.

Financial highlights

• Core NII was ₹384.8 crore, up 40.6% YoY; NII was ₹371.9 crore, up 38.7% YoY.

• PPoP was ₹187.5 crore, up 49.9% YoY; net total income rose 32.8% to ₹397.6 crore.

• Net gain on direct assignment was -₹12.9 crore, versus ₹6.1 crore in Q4 FY26 and -₹5.5 crore in Q1 FY26; operating expenses were ₹210 crore, with cost-to-income at 52.8%.

• Revenue from operations was ₹66,993 lakh and net profit was ₹11,438 lakh; basic/diluted EPS was ₹3.05/₹3.03.

Outlook and guidance

• FY27 entity growth guidance remains 20%-25%; with gold prices flat, gold AUM growth is expected at 25%-30% and mortgage AUM growth at 15%-20%.

• LAP AUM growth guidance is 15%-20%; annual average ROA is expected to improve 20-30 bps from FY26’s 2.4%.

• Credit-cost guidance remains below 1%; plans call for 200 new branches in FY27, with delayed Q1 openings expected to spill into Q2.

• Gold tonnage growth has historically been 10%-12% annually; Q1 and Q2 are typically softer, with growth expected to pick up in Q3 and Q4.