Fedbank Financial Services (FEDFINA) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 AUM rose 17.4% YoY to ₹17,500 crore; excluding Business Loans, growth was 32.5%.

• Disbursements increased 95.8% YoY to ₹8,606 crore, with record quarterly net AUM growth of ₹1,174 crore.

• Q3 net profit was ₹87.91 crore; 9M FY26 net profit reached ₹243.07 crore.

Financial highlights

• Net interest income rose 16.8% YoY to ₹318.9 crore; net total income was ₹347.8 crore, up 11.8%.

• Operating profit increased 11.7% YoY to ₹149.4 crore; operating expenses were ₹198.4 crore, up 12.0% YoY.

• Q3 profit before tax was ₹118.29 crore; total expenses were ₹437.59 crore, including ₹208.07 crore finance costs and ₹31.13 crore impairment.

• Net income from direct assignments fell to ₹1 crore in 9M FY26 from ₹62 crore in 9M FY25, reflecting a shift toward core income.

Outlook and guidance

• FY26 credit cost target is below 1%; management expects more predictable FY27 slippages and plans to provide credit-cost and OpEx-to-average-assets guidance after Q4.

• FY26 is an investment year for Gold branches, ST LAP rebuilding and collections; cost-to-income benefits and further ROA improvement are expected in FY27.

• Gold growth is expected to outpace other businesses; management targets 10%–12% YoY tonnage growth while maintaining price, LTV and risk discipline.

• Gold branch expansion continues; ST LAP collections are expected to be fully in-house by Q4, with Tamil Nadu disbursal normalcy anticipated in Q4 and Q1.