News
Fedbank Financial Services
18-Oct-2025 | 08:43
AUM rises 13%, disbursement jumps 37% in Q2FY26
The income from operation of Fedbank Financial Services increased 3% to Rs 530.29 crore in Q2FY2026. Overall OPM improved to 67.9% in Q2FY2026 from 67.5% in Q2FY2025, leading to 4% rise in operating profit to Rs 360.19 crore. Other income declined 7% to Rs 5.70 crore. Interest cost increased were flat at Rs 213.84 crore. Depreciation moved up 11% to Rs 13.06 crore. The provisions of the company declined 21% to Rs 31.52 crore, leading to 24% rise in the PBT to Rs 107.47 crore. The effective tax rate was flat at 25.4% in Q2FY2026 compared to 25.3% in Q2FY2025. Provision for tax was expense of Rs 27.32 crore, compared to Rs 21.87 crore. Profit after tax increased 24% to Rs 80.15 crore.
Business highlights
AUM of the company has increased 13% to Rs 16136 crore end September 2025. The company as de-recognized Rs 116 crore of unsecured business loans pursuant to a 100% direct assignment transaction. Thus, the share of secured loans has jumped to 97.7% at end September 2025 from 96.1% a quarter ago and 86.4% a year ago. Disbursements increased 37% to Rs 5205 crore in Q2FY2026. The company has network of 699 branches manned by 4894 employees end September 2025. Spreads increased on sequential basis to 8.7% in Q2FY2026 from 7.7% in Q1FY2026. Gross Stage III increased was eased to 1.90% in Q2FY25 and the Net Stage III rose to 1.3%. Credit cost declined to 0.9% in Q2FY2026 from 1.5% in Q2FY25, while rose from 0.8% in Q1FY26.Financial Performance H1FY2026
The income from operation of Fedbank Financial Services increased 6% to Rs 1041.58 crore in H1FY2026. Overall OPM improved to 68.1% in H1FY2026 from 67.8% in H1FY2025, leading to 7% rise in operating profit to Rs 709.64 crore. Other income declined 60% to Rs 11.66 crore. Interest cost increased 4% to Rs 431.81 crore. Depreciation moved up 12% to Rs 25.43 crore. Provisions declined 25% to Rs 56.24 crore. PBT moved up 15% to Rs 207.82 crore. The effective tax rate increased to 25.34% in H1FY2026 compared to 25.14% in H1FY2025. Provision for tax was expense of Rs 52.66 crore, compared to Rs 45.27 crore. Profit after tax rose 15% to Rs 155.16 crore.| Fedbank Financial Services: Results | |||||||||
| Particulars | 2509 (3) | 2409 (3) | Var % | 2509 (6) | 2409 (6) | Var % | 2503 (12) | 2403 (12) | Var % |
| Income from Operations | 530.29 | 512.98 | 3 | 1041.58 | 980.93 | 6 | 2035.79 | 1577.21 | 29 |
| OPM (%) | 67.9 | 67.5 | ? | 68.1 | 67.8 | ? | 67.7 | 67.5 | ? |
| OP | 360.19 | 346.18 | 4 | 709.64 | 665.36 | 7 | 1378.71 | 1065.05 | 29 |
| Other Inc. | 5.70 | 6.11 | -7 | 11.66 | 29.15 | -60 | 44.03 | 45.79 | -4 |
| PBDIT | 365.89 | 352.29 | 4 | 721.30 | 694.51 | 4 | 1422.74 | 1110.84 | 28 |
| Interest | 213.84 | 214.24 | 0 | 431.81 | 416.65 | 4 | 853.78 | 679.56 | 26 |
| PBDT | 152.05 | 138.05 | 10 | 289.49 | 277.86 | 4 | 568.96 | 431.28 | 32 |
| Provisions | 31.52 | 39.86 | -21 | 56.24 | 75.04 | -25 | 216.36 | 65.85 | 229 |
| Depreciation | 13.06 | 11.77 | 11 | 25.43 | 22.77 | 12 | 48.85 | 37.35 | 31 |
| PBT before EO | 107.47 | 86.42 | 24 | 207.82 | 180.05 | 15 | 303.75 | 328.08 | -7 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 107.47 | 86.42 | 24 | 207.82 | 180.05 | 15 | 303.75 | 328.08 | -7 |
| Tax Expenses | 27.32 | 21.87 | 25 | 52.66 | 45.27 | 16 | 78.57 | 83.38 | -6 |
| PAT | 80.15 | 64.55 | 24 | 155.16 | 134.78 | 15 | 225.18 | 244.70 | -8 |
| EPS (Rs)* | 8.6 | 6.9 | ? | 8.3 | 7.2 | ? | 6.0 | 6.6 | ? |
| Equity | 373.7 | 371.9 | ? | 373.7 | 371.9 | ? | 372.7 | 369.4 | ? |
| Adj BV (Rs) | 68.5 | 60.2 | ? | 68.5 | 60.2 | ? | 64.5 | 57.7 | ? |
| * EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 10, Figures in Rs crore, PL: Profit to Loss, LP: Loss to Profit | |||||||||
| Source: Capitaline Corporate Database | |||||||||
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