Fedbank Financial Services (FEDFINA) Q4 25/26 earnings summary

Executive summary

• FY26 was positioned as a rebuild year focused on lower credit costs, secured lending and growth in gold and LAP businesses.

• AUM reached ₹20,153 Cr, up 27.5% YoY; growth excluding Business Loans was 40.8% following the H1 assignment and derecognition. Lending was 98.9% secured by AUM; secured on-book AUM exceeded 99.5%.

• FY26 PAT rose 52.6% to ₹343.6 Cr; Q4 PAT increased 40.3% YoY to ₹100.5 Cr as asset quality improved and credit costs declined.

Financial highlights

• FY26 disbursements rose 67.2% to ₹31,410 Cr; Q4 disbursements reached ₹11,665 Cr, up 109.1% YoY.

• FY26 net interest income grew 14.8% to ₹1,229.7 Cr; Q4 grew 23.1% to ₹348.8 Cr. FY26 operating profit was ₹576.3 Cr, up 10.8%; Q4 was ₹162.8 Cr, up 24.0%.

• FY26 total income was ₹222,661 lakh versus ₹207,982 lakh; Q4 total income was ₹61,749 lakh versus ₹53,747 lakh.

• Adjusted for deliberately lower prior-year DA income, FY26 core PPOP grew 22% YoY; reported operating profit growth was 10.8%.

Outlook and guidance

• FY27 AUM growth guidance is 20%-25%; with flat gold prices, gold AUM growth is expected at 20%-22%, supported by planned tonnage growth of 10%-15%.

• FY27 credit costs are expected to remain range-bound; management targets 20-30 bps ROE improvement from the FY26 average through credit-cost and OpEx actions.

• Gold yields are expected to recover toward FY26 Q2 levels in Q1 if competition remains steady; LAP yields are expected to hold, with 10 bps variation possible.

• Mortgage growth will be managed across Medium and Small Ticket LAP, prioritizing quality; STLAP growth is expected to build as the revamped framework gains traction.