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.

Fedbank Financial Services Limited has announced its financial results for the quarter and year ended March 31, 2026, reporting a significant improvement in profitability and asset quality. The company held an earnings conference call on April 28, 2026, to discuss the performance, highlighting robust growth in its gold loan portfolio and operational efficiency.

Financial Performance Highlights

The company delivered strong financial metrics for Q4 FY26, driven by a 27% growth in total Assets Under Management (AUM) to INR20,153 crores. Excluding business loans, AUM grew by 41% year-on-year. Net profit for the quarter stood at INR100.5 crores, a 40% increase compared to the corresponding period of the previous year. For the full year FY26, the net profit reached INR343.6 crores.

Business Growth and Strategy

Fedbank Financial Services continued to execute its 'Twin-Engine' strategy, focusing on Gold and Loan Against Property (LAP) businesses. Gold loan AUM crossed the INR10,000 crore mark, reaching INR10,352 crores, supported by a 12% year-on-year growth in tonnage to 12.6 tons. The doorstep gold loan business saw an AUM increase of 108% YoY to INR1,730 crores.

The company opened 148 new gold branches during the fiscal year, including 34 in Q4 FY26, bringing the total branch count to over 750. The average AUM per branch reached INR16.5 crores. Disburseals for the quarter increased by 109% to INR11,664 crores, with gold disbursals reaching INR10,744 crores in Q4.

Asset Quality and Capital Adequacy

Asset quality showed marked improvement during the quarter. The Gross NPA (GNPA) declined by 20 basis points quarter-on-quarter to 1.9%, while Net NPA decreased by 10 bps to 1.3%. The company's credit cost for Q4 stood at 0.7%, compared to 0.8% for the full year.

The Capital Adequacy Ratio (CRAR) improved to 22.4% as of March 31, 2026, up from 21.9% at the beginning of the year. This was supported by the raising of INR450 crores in subordinated debt during Q4 and strategic capital conservation measures, including the assignment of the unsecured business loan portfolio.

Operational Efficiency and Outlook

The Return on Assets (ROA) improved to 2.6% in Q4, up from 2.5% in the previous quarter, while Return on Equity (ROE) broke into the teens at 14%. Operating expenses as a percentage of average total assets reduced to 5.5% from 5.9% a year ago, indicating operating leverage.

Management guided for an AUM growth of 20% to 25% for FY27. They expect the credit cost to remain range-bound and anticipate an improvement in ROA by approximately 20 to 30 basis points in the coming year, driven by better operational efficiency and controlled credit costs.