Fedbank Financial Services (FEDFINA) Q2 25/26 earnings summary

Executive summary

• Q2 PAT rose 24.2% YoY to ₹80.2 crore; AUM grew 13.5% to ₹16,136 crore, led by gold lending.

• Priorities included secured growth, gold and LAP, capital allocation to higher-return businesses, and reducing reliance on direct-assignment income.

• Unaudited Q2 and H1 FY26 results were approved; statutory auditors issued an unmodified limited-review conclusion.

Financial highlights

• Net interest income rose 10.9% YoY to ₹293.9 crore; core NII increased 18.0% to ₹287.2 crore.

• Operating profit increased 10.1% YoY to ₹139.0 crore; PBT rose 24.4% to ₹107.5 crore and PAT rose 24.2% to ₹80.2 crore.

• Disbursements were ₹5,205 crore, up 36.6% YoY and down 12.3% QoQ; AUM rose 2.8% QoQ.

• H1 net profit was ₹155.16 crore versus ₹134.78 crore in H1 FY25; H1 total income was ₹1,053.24 crore.

Outlook and guidance

• FY26 credit-cost guidance remained 1% ±10 bps as older ST LAP collections and portfolio corrections continued.

• Plan to open ~150 gold branches in FY26, including ~90 in H2, alongside 75–80 branch consolidations for the year.

• Gold tonnage and AUM growth were expected to pick up in Q3 and Q4, supported by October trends and seasonality.

• FY27 ROA guidance was unchanged; FY27 OpEx was expected to differ substantially as FY26 capacity investments mature.