Fedbank Financial Services Reports 40.3% PAT Growth in Q4 FY26, Driven by Strong Disbursements and Asset Growth
Fedbank Financial Services Limited, a major retail-focused Non-Banking Financial Company (NBFC), announced strong financial and operational results for the fourth quarter and the full financial year ended March 31, 2026. The company reported a Profit After Tax (PAT) increase of 40.3% year-over-year (YoY) in Q4 FY26, reaching ₹100.5 Cr.The NBFC, which specializes in Loan Against Property and Gold Loans, also recorded significant growth in its assets and lending activities. Asset Under Management (AUM) increased by 27.5% YoY, totaling ₹20,153 Cr in Q4 FY26. Disbursements for the quarter soared by 109.1% YoY, hitting ₹11,665 Cr.
Financial Performance Highlights (Q4 FY26)
The company's consolidated financial results reflect robust growth across key income streams and operational efficiencies.| (₹ Cr) | Q4FY25 | Q3FY26 | Q4FY26 | QoQ | YoY | FY 25 | FY 26 | YoY |
|---|---|---|---|---|---|---|---|---|
| Interest Income | 495.5 | 526.8 | 582.1 | 10.5% | 17.5% | 1858.6 | 2101.6 | 13.1% |
| Interest Expenses | 215.9 | 208.1 | 239.4 | 15.1% | 10.9% | 853.8 | 879.3 | 3.0% |
| Net Interest Income (Core) | 279.6 | 318.8 | 342.7 | 7.5% | 22.6% | 1004.9 | 1222.3 | 21.6% |
| Net Gain on Direct Assignment | 3.8 | 0.1 | 6.1 | 4128.7% | 62.7% | 65.9 | 7.4 | -88.8% |
| Net Interest Income | 283.4 | 318.9 | 348.8 | 9.4% | 23.1% | 1070.8 | 1229.7 | 14.8% |
| Other Income | 38.3 | 28.9 | 29.2 | 1.2% | -23.7% | 155.2 | 117.5 | -24.3% |
| Net Total Income | 321.7 | 347.8 | 378 | 8.7% | 17.5% | 1226 | 1347.3 | 9.9% |
| Operating Expenses | 190.4 | 198.4 | 215.2 | 8.5% | 13.0% | 705.9 | 771 | 9.2% |
| Operating Profit | 131.2 | 149.4 | 162.8 | 9.0% | 24.0% | 520.1 | 576.3 | 10.8% |
| Credit Cost | 32.6 | 31.1 | 27.9 | -10.4% | -14.3% | 216.4 | 115.3 | -46.7% |
| Profit Before Tax | 98.7 | 118.3 | 134.9 | 14.1% | 36.7% | 303.8 | 461 | 51.8% |
| Tax Expenses | 27 | 30.4 | 34.4 | 13.1% | 27.2% | 78.6 | 117.4 | 49.4% |
| Profit After Tax | 71.7 | 87.9 | 100.5 | 14.4% | 40.3% | 225.2 | 343.6 | 52.6% |
| Shareholder's Fund | 2547.4 | 2806.4 | 2926.1 | 4.3% | 14.9% | 2547.4 | 2926.1 | 14.9% |
| Book Value Per Share (₹) | 68.3 | 75 | 78.2 | 4.2% | 14.4% | 68.3 | 78.2 | 14.4% |
Operational and Growth Metrics
The company's asset growth and disbursement figures show strong expansion momentum. For Q4 FY26, Asset Under Management (AUM) increased by 27.5% YoY, reaching ₹20,153 Cr. Disbursements for the quarter were ₹11,665 Cr, reflecting a 109.1% YoY growth.Key performance ratios remained healthy, with the Cost to Income ratio settling at 56.9% in Q4 FY26, down from 57.0% in Q3 FY26. The Return on Average Equity improved to 14.0% in the quarter, showing a 259 bps increase YoY. Gross NPA was reported at 1.9% for Q4 FY26, marking a slight improvement from 2.0% in the previous year.
| Ratios | Q4FY25 | Q3FY26 | Q4FY26 | QoQ | YoY | FY 25 | FY 26 | YoY |
|---|---|---|---|---|---|---|---|---|
| Cost to Income | 59.2% | 57.0% | 56.9% | -10 bps | -226 bps | 57.6% | 57.2% | -35 bps |
| Return on Average Assets | 2.2% | 2.5% | 2.6% | 4 bps | 35 bps | 1.8% | 2.4% | 63 bps |
| Return on Average Equity | 11.4% | 12.7% | 14.0% | 128 bps | 259 bps | 9.4% | 12.6% | 323 bps |
| Gross NPA | 2.0% | 2.1% | 1.9% | -18 bps | -14 bps | 2.0% | 1.9% | -14 bps |
| Net NPA | 1.2% | 1.4% | 1.3% | -13 bps | 5 bps | 1.2% | 1.3% | 5 bps |
| CRAR | 21.9% | 20.5% | 22.4% | 193 bps | 50 bps | 21.9% | 22.4% | 50 bps |
Organizational Expansion
The company maintained its expansion pace through Q4 FY26. The branch network stood at 757 locations, a 3.7% increase over Q3 FY26, reaching a total of 757 across 17 states and union territories. The employee strength also increased, reaching 5,303 by the end of the quarter, representing a 4.3% QoQ and 16.1% YoY rise.In terms of operations, the company also co-located seven MSE LAP branches with Gold Loan branches during the quarter and launched 34 new Gold Loan branches. Fedbank Financial Services Limited operates as a retail-focused NBFC, promoting a collateralized lending model targeting the emerging self-employed customer segment.
FEDFINA Stock Price Movement
Shares of Fedbank Financial Services Limited today slipped by 3.89% to settle at ₹151.61. The stock experienced significant selling today, tracking a total volume of 1.82 million shares in the Financial Services sector.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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