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

Executive summary

• FY25 AUM grew 29.7% to ₹15,812 crore; secured lending represented 89.5% of AUM, with mortgage and gold loans as core products.

• 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 while rebuilding small-ticket LAP collections and winding down material new unsecured business-loan originations.

Financial highlights

• Q4 AUM was ₹15,812 crore, up 29.7% YoY; disbursements rose 28.6% YoY to ₹5,578 crore.

• Q4 total income was ₹537.5 crore, up 25.7% YoY; NII rose 34.6% to ₹283.4 crore and operating profit increased 20.9% to ₹131.2 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 revenue from operations was ₹2,035.79 crore; net profit was ₹225.18 crore versus ₹244.70 crore in FY24.

• FY25 impairment expense rose to ₹216.36 crore from ₹65.85 crore; operating expenses increased 28% YoY.

Outlook and guidance

• FY26 AUM growth target is 12%–15% including the business-loan base, or 25%–30% excluding it; small-ticket LAP disbursals are expected to build from Q4 levels.

• Credit cost is expected near 1%, plus or minus 10 bps; further flows are expected over the next two quarters, followed by a plateau and normalization by year-end.

• NIMs are expected to remain stable as direct-assignment income contribution declines and core earnings grow; management cited a constant-spread outlook.

• Doorstep Gold Loan share is targeted to rise from 15% to 18%–22% over one to two years; both branch and doorstep channels are expected to grow.

• Core BAU OPEX is targeted on a stable-to-lower trajectory, alongside selective investment in collections, people, technology and growth opportunities.