Fedbank Financial Services

AUM growth accelerates to 17%, spreads improve

The income from operation of Fedbank Financial Services increased 4% to Rs 550.79 crore in Q3FY2026. Overall OPM declined to 66.5% in Q3FY2026 from 69.0% in Q3FY2025, leading to flat operating profit at Rs 366.45 crore.

Other income increased 124% to Rs 5.09 crore. Interest cost increased dipped 6% to Rs 208.07 crore. Depreciation moved up 10% to Rs 14.05 crore. The provisions of the company declined 71% to Rs 31.13 crore, leading to 372% jump in the PBT to Rs 118.29 crore.

The effective tax rate rose to 25.7% in Q3FY2026 compared to 25.1% in Q3FY2025. Provision for tax was expense of Rs 30.38 crore, compared to Rs 6.28 crore. Profit after tax increased 367% to Rs 87.91 crore in Q3FY2026.

Business highlights

AUM of the company has increased at an accelerated pace of 17% to Rs 17500 crore end December 2025. The share of secured loans has jumped to 98.4% at end December 2025 from 97.7% a quarter ago and 87.1% a year ago.

The gold loan AUM has jumped 52% to Rs 7905 crore, contributing 45.2% of AUM at end December 2025. The mortgage AUM has increased 20% to Rs 9084 crore at end December 2025.

Disbursements increased 96% yoy to Rs 8606 crore in Q3FY2026.

The company has network of 730 branches manned by 5085 employees end December 2025.

Spreads increased to 9.0% in Q3FY2026 from 8.7% in Q2FY2026 and 8.1% in Q3FY2026.

Gross Stage III increased rose to 2.1% in Q3FY25 and the Net Stage III rose to 1.4%.

Credit cost remained stable at 0.9% in Q3FY2026 from 0.9% in Q2FY26, while dipped from 3.4% in Q3FY25.

The company has added 54 new branches in Q3FY2026 and 113 branches in 9MFY2026. Total branch count stands at 730 across 17 states & UTs at end December 2025.

Financial Performance 9MFY2026

The income from operation of Fedbank Financial Services increased 6% to Rs 1592.37 crore in 9MFY2026. Overall OPM eased to 67.6% in 9MFY2026 from 68.1% in 9MFY2025, leading to 5% rise in operating profit to Rs 1076.09 crore.

Other income declined 56% to Rs 16.75 crore. Interest cost was flat at Rs 639.88 crore. Depreciation moved up 11% to Rs 39.48 crore. Provisions declined 52% to Rs 87.37 crore. PBT moved up 59% to Rs 326.11 crore.

The effective tax rate increased to 25.5% in 9MFY2026 compared to 25.1% in 9MFY2025. Provision for tax was expense of Rs 83.04 crore, compared to Rs 51.57 crore. Profit after tax increased 58% to Rs 243.07 crore.?

Fedbank Financial Services: Results
Particulars	2512 (3)	2412 (3)	Var %	2512 (9)	2412 (9)	Var %	2503 (12)	2403 (12)	Var %
Income from Operations	550.79	529.99	4	1592.37	1504.52	6	2035.79	1577.21	29
OPM (%)	66.5	69.0	?	67.6	68.1	?	67.7	67.5	?
OP	366.45	365.65	0	1076.09	1024.61	5	1378.71	1065.05	29
Other Inc.	5.09	2.27	124	16.75	37.83	-56	44.03	45.79	-4
PBDIT	371.54	367.92	1	1092.84	1062.44	3	1422.74	1110.84	28
Interest	208.07	221.26	-6	639.88	637.91	0	853.78	679.56	26
PBDT	163.47	146.66	11	452.96	424.53	7	568.96	431.28	32
Provisions	31.13	108.79	-71	87.37	183.83	-52	216.36	65.85	229
Depreciation	14.05	12.83	10	39.48	35.60	11	48.85	37.35	31
PBT before EO	118.29	25.04	372	326.11	205.10	59	303.75	328.08	-7
EO	0.00	0.00	-	0.00	0.00	-	0.00	0.00	-
PBT after EO	118.29	25.04	372	326.11	205.10	59	303.75	328.08	-7
Tax Expenses	30.38	6.28	384	83.04	51.57	61	78.57	83.38	-6
PAT	87.91	18.76	369	243.07	153.53	58	225.18	244.70	-8
EPS (Rs)*	9.4	2.0	?	8.7	5.5	?	6.0	6.6	?
Equity	374.1	372.7	?	374.1	372.7	?	372.7	369.4	?
Adj BV (Rs)	70.2	63.0	?	70.2	63.0	?	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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