Fedbank Financial Services has allotted 71,125 equity shares of Rs. 10/- each on May 06, 2026, pursuant to the exercise of vested stock options by grantees under the Fedbank Financial Services Limited - Employees Stock Option Scheme, 2018. The allotment was approved by the Committee of Directors (Operations) in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and was intimated to both the National Stock Exchange of India Limited and BSE Limited.

Impact on Paid-Up Share Capital

The allotment has resulted in an increase in the company's paid-up equity share capital. The following table summarises the change in share capital structure following the allotment:

Key Details of the Allotment

The key parameters of this allotment are outlined below:

Pari-Passu Status and Listing Formalities

Fedbank Financial Services has confirmed that the newly allotted shares rank pari-passu with the existing equity shares of the company in all respects. The company has also stated that it is in the process of completing the requisite formalities for the listing of the allotted equity shares on the stock exchanges. The intimation was signed by Parthasarathy Iyengar, Company Secretary & Compliance Officer (Membership No.: A21472), on behalf of the company.

Fedbank Financial Services delivered a landmark performance in Q4 FY26, crossing the ₹100 crores net profit milestone for the first time, with PAT reaching ₹100.5 crores for the quarter. The company's total AUM surpassed the ₹20,000 crores mark, reaching ₹20,153 crores — a growth of 27% year-on-year — underpinned by its twin-engine strategy of Gold and LAP (Loan Against Property) businesses. The results were discussed during the company's Q4 and FY26 Earnings Conference Call held on April 28, 2026, attended by senior management including MD & CEO Mr. Parvez Mulla and CFO Mr. C.V. Ganesh.

Key Financial Highlights

The following table summarises the company's key financial metrics for Q4 FY26 and FY26:

PAT grew 14.4% sequentially quarter-on-quarter and 40% year-on-year, supported by incremental interest income from asset growth and lower credit costs. The operating profit for Q4 grew 24% year-on-year to ₹162 crores, while full-year operating profit grew 10.8% year-on-year to ₹576.3 crores. Management noted that if DA income from the prior year were excluded, core operating profit growth would have been approximately 22% year-on-year on a full-year basis.

AUM Growth and Business Performance

The company's AUM growth was broad-based, with disbursals for Q4 FY26 reaching ₹11,664 crores, up 109% year-on-year. Full-year disbursals increased 67% to ₹31,410 crores from ₹18,788 crores, primarily driven by the gold business. Excluding business loans (BL), AUM grew 41% year-on-year.

Gold disbursals for Q4 FY26 reached ₹10,744 crores, compared to ₹7,853 crores in Q3 FY26 and ₹4,580 crores in Q4 of the previous year, reflecting growth of 37% and 135%, respectively. Gold AUM added ₹2,447 crores in Q4 alone, with tonnage growing 12% year-on-year to 12.6 tons. The company's AUM per gold branch reached ₹16.5 crores, an increase of ₹4.4 crores per branch during the year, even after opening 148 new branches.

LAP Business and Collections

Within the mortgage segment, the Medium Ticket LAP (MT LAP) business disbursed ₹2,180 crores for the full year and ₹632 crores in Q4 FY26, reflecting a 16% increase quarter-on-quarter. The Small Ticket LAP (ST LAP) business disbursed ₹904 crores during FY26 and ₹289 crores in Q4, a 39% increase quarter-on-quarter. Management highlighted that collections infrastructure was significantly strengthened during the year, with collection personnel nearly doubling by end of FY26, and the collection framework verticalized with in-house teams replacing agency-led collections.

Asset Quality and Capital Adequacy

Asset quality improved across the board in Q4 FY26. Entity 1+ DPD improved to 6% from 7.1% in December, while entity 30+ DPD improved by 70 basis points and entity 60+ DPD improved by 50 basis points over the prior quarter. GNPA declined 20 basis points quarter-on-quarter to 1.9% from 2.1%, and net NPA declined 10 basis points to 1.3%. The Provision Coverage Ratio (PCR) was held flat at approximately 32.30%.

On the capital front, the company raised ₹450 crores in subordinated debt in Q4, supplementing capital adequacy by 3%. The Capital to Risk-weighted Assets Ratio (CRAR) stood at 22.4% as of March, up from 20.5% in Q3. During FY26, the company fully assigned its business loan portfolio of ₹886 crores, executed ₹1,694 crores in direct assignment transactions, and grew the gold co-lending book by ₹1,131 crores to ₹2,127 crores. The company also raised approximately $250 million in External Commercial Borrowings (ECB) during the year.

Outlook and Strategic Priorities

Management reiterated an overall AUM growth guidance of 20% to 25% for the coming year, with the twin-engine strategy of Gold and LAP remaining central to the growth plan. On the profitability front, management guided for approximately 20 to 30 basis points improvement in ROA over the FY26 average, to be driven by a combination of opex reduction and continued moderation in credit costs. The company also indicated plans to continue branch expansion in FY27 and expects the ST LAP business to progressively improve in sourcing quality and collections efficiency as the newly onboarded leadership and field teams gain further vintage.