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

Executive summary

• Q1 FY27 AUM reached ₹21,136 crore, up 34.7% YoY; PAT was ₹11,438 lakh, up 52.5%, with RoA of 2.6% and RoE of 15.4%.

• Priorities include secured lending, scaling gold loans and LAP, improving cost efficiency and keeping credit costs below 1%.

Financial highlights

• Disbursements rose 13.9% YoY to ₹6,760 crore; NII was ₹371.9 crore, up 38.7%, and core NII was ₹384.8 crore, up 40.6%.

• Net total income increased 32.8% YoY to ₹397.6 crore; operating profit rose 49.9% to ₹187.5 crore.

• Operating expenses were ₹210 crore, up 20.5% YoY but down 2.4% QoQ; cost-to-income improved to 52.8% from 57.2% annualized in FY26.

• Net gain on direct assignment was -₹12.9 crore versus ₹6.1 crore in Q4 FY26 and -₹5.5 crore in Q1 FY26; PAT was ₹11,438 lakh versus ₹7,501 lakh.

• Basic/diluted EPS was ₹3.05/₹3.03 versus ₹2.01/₹2.01 in Q1 FY26.

Outlook and guidance

• FY27 AUM growth guidance: gold 25%-30% and mortgage 15%-20%, assuming no gold-price increase; entity-level growth guidance was 20%-22%.

• FY27 credit-cost guidance remains below 1%; average RoA target is 20-30 bps above FY26's 2.4%.

• Plan to open 200 branches in FY27 after 150 additions last year; locations identified in Q1 are expected to contribute openings in Q2.

• Incremental AUM growth is expected to use co-lending and direct-assignment partners to conserve capital; co-lending normalization is expected over coming months.