Fedbank Financial Services (FEDFINA) Q4 24/25 earnings summary

Executive summary

• FY25 AUM rose 29.7% to ₹15,812 crore and disbursements grew 38.4% to ₹18,788 crore; secured lending represented 89.5% of AUM.

• FY25 PAT declined 8.0% to ₹225.2 crore as credit costs increased; Q4 PAT rose 5.9% YoY to ₹71.7 crore.

• Strategy prioritizes gold and LAP growth, higher-ROE businesses, slower unsecured business-loan originations and rebuilding small-ticket LAP collections.

Financial highlights

• Q4 total income was ₹537.5 crore, up 25.7% YoY; NII rose 34.6% to ₹283.4 crore, operating profit increased 20.9% to ₹131.2 crore and PAT rose 5.9% to ₹71.7 crore.

• FY25 total income grew 28.1% to ₹2,079.8 crore; NII rose 31.9% to ₹1,070.8 crore and operating profit increased 32.0% to ₹520.1 crore.

• FY25 PAT declined 8.0% to ₹225.2 crore and PBT fell 7.4% to ₹303.8 crore; credit costs rose to ₹216.4 crore from ₹65.9 crore.

• FY25 OPEX grew 28% YoY; credit costs were 1.8% of average total assets, versus 0.7% in FY24.

Outlook and guidance

• FY26 AUM growth target is 12%–15% including the existing business-loan base, or 25%–30% excluding it.

• Credit costs are expected near 1%, plus or minus 10 bps; elevated small-ticket LAP flows may continue for two quarters, with normalization expected by year-end.

• NIMs are expected to remain stable, with a gradual reduction in DA income contribution; core OPEX is expected to remain stable or decline while selective growth and collection investments continue.

• Doorstep Gold Loans are targeted to grow from ~15% to 18%–22% of gold AUM over the next one to two years.