Fedbank Financial Services Limited (Fedfina) has delivered a strong financial performance in the third quarter of FY25-26, reporting a 368.6 per cent year-on-year jump in profit after tax to Rs 87.9 crore.
Net interest income for the quarter rose 16.8 per cent year-on-year to Rs 318.9 crore, supported by steady growth in interest income and lower interest expenses. Operating profit increased 11.7 per cent to Rs 149.4 crore, reflecting improved operating efficiency despite higher expenses associated with branch expansion and business growth.
The company’s assets under management (AUM) grew 17.4 per cent year-on-year to Rs 17,500 crore, while quarterly disbursements nearly doubled, rising 95.8 per cent to Rs 8,606 crore, indicating strong demand across its lending segments.
Fedfina’s balance sheet expansion was driven primarily by its Loan Against Property (LAP) and Gold Loan businesses. During the quarter, the company launched 54 new gold loan branches and co-located 14 MSME LAP branches with existing gold loan outlets. As of December 31, 2025, the company operated 730 branches across 17 states and union territories.
On the asset quality front, gross Stage III assets stood at 2.1 per cent, while net Stage III assets were at 1.4 per cent. Credit cost for the quarter remained contained at 0.9 per cent, reflecting controlled risk and prudent underwriting.
Key profitability ratios improved significantly, with return on average assets at 2.5 per cent and return on average equity at 12.7 per cent for the quarter. Shareholders’ funds increased to Rs 2,806.4 crore, while book value per share rose to Rs 75.
Fedbank Financial Services continues to focus on collateral-backed lending, primarily catering to emerging self-employed customers across India. The company remains well-capitalised with a capital adequacy ratio of 20.5 per cent, supporting its growth plans while maintaining balance sheet strength.
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