Fedbank Financial Services (FEDFINA) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 AUM reached ₹14,922 crore, up 39.3% YoY; disbursements rose 31.4% to ₹4,395 crore.

• NII increased 31% YoY to ₹283.8 crore and operating profit rose 30.9% to ₹144.6 crore; PAT fell 71.3% to ₹18.8 crore after a one-time provision.

• Mortgage delinquencies prompted tighter underwriting and stronger provisioning; strategy is shifting toward secured LAP and gold lending.

Financial highlights

• Total income was ₹543.0 crore, up 26.5% YoY; net total income was ₹321.8 crore, up 26.8%.

• Core NII rose 32.2% YoY to ₹264.5 crore; net gain on direct assignment was ₹19.3 crore and other income ₹38.0 crore.

• Operating expenses were ₹177.2 crore; pre-provisioning operating profit was ₹144.6 crore, up 30.9% YoY.

• Nine-month pre-provisioning operating profit exceeded ₹400 crore, up 40% YoY; net profit was ₹153.53 crore versus ₹177.05 crore.

Outlook and guidance

• Q4 credit cost is expected below 1%; the ₹75.5 crore additional provision was characterized as one-time, with greater predictability expected as unsecured lending slows.

• Unsecured business loans are expected to decline from 12% of the book to 5% over the next year; gold is expected to remain 30%–40% of AUM.

• Small-ticket LAP is a planned growth pivot; collection capacity, processes and technology are being strengthened, with management expecting collections to recover from Q1.