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

Executive summary

• Business AUM reached ₹17,500 crore, up 17.4% YoY; excluding assigned Business Loans, AUM grew 32.5% YoY.

• Q3 disbursements rose 95.8% YoY to ₹8,606 crore, led by Gold Loans; net profit was ₹8,791 lakh versus ₹1,876 lakh in Q3 FY25.

• Strategy prioritizes secured Gold Loan and LAP growth, capital allocation to high-ROA/ROE businesses, and rebuilding Small Ticket LAP.

• Unaudited results received an unmodified limited-review conclusion from the statutory auditors.

Financial highlights

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

• Operating profit increased 11.7% YoY to ₹149.4 crore; Q3 FY26 net profit was ₹8,791 lakh and profit before tax was ₹11,829 lakh.

• Q3 FY26 revenue from operations was ₹55,517 lakh; total expenses were ₹43,759 lakh, including ₹20,807 lakh finance costs and ₹3,113 lakh impairment.

• 9M FY26 total income was ₹1,60,912 lakh and net profit ₹24,307 lakh, versus ₹1,54,235 lakh and ₹15,353 lakh in 9M FY25.

• Q3 FY26 basic/diluted EPS was ₹2.35/₹2.33; 9M FY26 basic/diluted EPS was ₹6.51/₹6.45, not annualised.

Outlook and guidance

• FY26 credit cost target remains below 1%; management expects FY27 slippages to be more predictable as legacy cohorts run through and recovery capacity strengthens.

• FY27 is expected to benefit from operating-cost actions and branch consolidation; FY26 includes investment in collections, Gold Loan branches and ST LAP rebuilding.

• Gold Loan growth is expected to outpace other businesses; management reiterated 10%-12% YoY tonnage growth while monitoring price and LTV risk.

• ST LAP disbursal normalcy in Tamil Nadu is expected in Q4 FY26 and Q1 FY27; legacy-vintage stress is expected to become more predictable after Q4.