India · Delayed Price · Currency is INR Fedbank Financial Services Earnings Call Transcripts
Fiscal Year 2027
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Q2 delivered record profitability, 37% YoY AUM growth and 17% ROE despite heightened competition. FY27 AUM growth guidance remains 20%–25%, with a 3% ROA target and stronger H2 expected.
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AUM rose 34.7% YoY and PAT 52.5%, led by gold loans, with credit costs at 0.8%. FY27 growth and return guidance was maintained despite regulatory-driven gold-loan delinquency changes and competitive LAP yields.
Fiscal Year 2026
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FY 2026 delivered 27% AUM growth, INR 343.6 crore PAT and lower credit costs after a rebuild year. Guidance calls for 20%-25% AUM growth, with ROE improvement dependent on cost and credit performance.
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Q3 FY26 business AUM grew 17% YoY, with strong Gold-led disbursements and 0.9% credit cost. Older-vintage ST LAP stress and near-term investment spending remain, while management expects more predictable slippages and FY27 operating leverage.
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Q2 net profit rose 24.2% YoY to ₹80.2 crore, while AUM grew 13.5% and gold AUM 36.4%. Priorities remain secured growth and balance-sheet de-risking; FY26 credit-cost guidance stays at 1% ±10 bps as ST LAP collections are rebuilt.
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Q1 FY26 AUM rose 19% YoY and net profit increased 6.8%, with gold and mortgage growth supporting the shift toward secured lending. Credit cost guidance remains 1% ±10 bps as ST LAP flows are managed and gold-branch expansion accelerates.
Fiscal Year 2025
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FY25 AUM grew 30% to ₹15,812 crore, with strong gold and medium-ticket LAP growth. Small-ticket LAP collections remain the key asset-quality challenge; FY26 AUM growth is targeted at 12%–15%, or 25%–30% excluding the business-loan base.
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Q3 AUM rose 39% YoY and operating profit grew 31%, but net profit fell after a one-time INR 75.5 crore provision for credit stress. Strategy shifts toward secured LAP and gold lending, with collections and underwriting being strengthened.
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AUM and disbursements grew strongly, while Q2 profit fell QoQ amid higher operating costs and additional ECL provisioning. Management targets 30%–35% FY25 growth but plans cautious small-mortgage lending and expects credit costs near 1%.
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Q1 AUM rose 40% YoY to INR 13,188 crore, led by gold loans, while PAT grew 30% YoY to INR 70.2 crore. FY25 guidance: 25% AUM growth, 0.8% credit cost and 56% cost-to-income.
Fiscal Year 2024
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Q4 AUM grew 14% QoQ to ₹12,191 crore, while FY24 net profit rose 36% to ₹244.7 crore. Guidance calls for 25%+ advances growth, 80 bps sustainable impairment cost and lower cost to AUM.
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Q3 PAT rose 28% YoY to ₹654 million, while AUM grew 34% to ₹107.1 billion. Management sees continued disbursement growth and expects NIMs to hold or improve, supported by higher-yield products, co-lending and stronger funding access.
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Q2 AUM rose 38% YoY to ~₹10,000 crore and PAT grew 25% to ₹67.8 crore. Guidance targets 25%–30% AUM growth, ROA above 2.5%, and rising off-book share, with operating leverage expected to improve.