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Edelweiss Financial Services Ltd

| Consolidated Financial Results for the Quarter and Year Ended March 31, 2026

Report Source

⬤30th Apr 26

Summary : Edelweiss Financial Services reported strong PAT growth, significant business segment expansion, and reduced debt, while navigating global uncertainties.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Finance costs: INR 2,491.60 Cr
  2. Impairment on financial instruments: INR 334.19 Cr
  3. Change in valuation of credit impaired loans: INR 1,366.25 Cr
  4. Employee benefits expense: INR 1,370.42 Cr
  5. Depreciation and amortisation expense: INR 143.61 Cr
  6. Change in insurance policy liability - actuarial: INR 896.38 Cr
  7. Policy benefits paid: INR 1,441.16 Cr
  8. Other expenses: INR 1,918.18 Cr
  9. Total Expenses: INR 9,961.79 Cr
  10. Interest income: INR 2,766.53 Cr
  11. Dividend income: INR 68.72 Cr
  12. Fee and commission income: INR 1,336.69 Cr
  13. Net gain/(loss) on fair value changes: INR 3,409.64 Cr
  14. Premium from insurance business: INR 2,835.37 Cr
  15. Other income: INR 448.19 Cr
  16. Total Revenue: INR 10,865.14 Cr
  17. Net cash generated from operating activities: INR 897.26 Cr
  18. Net cash used in investing activities: (INR 963.23) Cr
  19. Net cash used in financing activities: (INR 1,936.40) Cr
  20. Net decrease in cash and cash equivalents: (INR 2,002.37) Cr
  21. Total Assets: INR 43,741.45 Cr
  22. Total Liabilities: INR 37,797.82 Cr
  23. Total Equity: INR 5,943.63 Cr
  24. Net Worth: INR 5,944 Cr
  25. Consol Net Debt: INR 10,430 Cr
  26. Consolidated Liquidity: INR 6,500 Cr
  27. Audited financial results approved for both Consolidated and Standalone.
  28. Consolidated PAT (Pre MI) of INR 680 Cr, up 27% YoY.
  29. Standalone Net Profit after tax: INR 447.52 Cr.

Corporate Overview

  1. India
  2. Ongoing geopolitical tensions leading to heightened global economic uncertainty.
  3. Impact of one-time exceptional items like GST and new labour code on financials.
  4. Strategic investment by global private equity firm Carlyle in Nido Home Finance.
  5. Diversified financial services company with seven independent businesses.
  6. Businesses include Alternative Asset Management, Mutual Fund, Asset Reconstruction, NBFC, Housing Finance, General Insurance, and Life Insurance.
  7. Confident in India's economic resilience despite global uncertainty.
  8. Positive about operating business momentum and strategic priorities progress.
  9. Customer reach up by 31% YoY to nearly 14 million.
  10. Alternative Asset Management (FPAUM grew 32% YoY)
  11. Mutual Fund (Equity AUM grew 25% YoY, SIP Book grew 58% YoY)
  12. Asset Reconstruction (Recovered INR 8,590 Cr, retail share increased to 29%)
  13. NBFC (MSME disbursals tripled YoY, wholesale book reduced)
  14. Housing Finance (Disbursement up 27% YoY, AUM up 16% YoY)
  15. General Insurance (GWP grew 28% YoY, policies issued up 47% YoY)
  16. Life Insurance (Gross Premium increased 6% YoY, AUM up 11% YoY)
  17. Employs over 6,000 people.
  18. Serves around 1.4 Cr customers.
  19. Manages over INR 2,40,000 Cr worth of assets.
  20. EAAA received DRHP approval from SEBI for listing journey.
  21. Strategic investment by Carlyle in Nido Home Finance in regulatory approval process.
  22. Citius, a transport-focused InvIT, successfully completed its IPO.

Risk Factors

  1. Global geopolitical tensions create uncertainty.
  2. Exceptional items impacted reported financials.
  3. New Labour Code implementation uncertainty.
  4. Market volatility and regulatory changes.

Key Drivers

  1. Consolidated PAT up 27% YoY.
  2. Alternative Asset Management FPAUM grew 32%.
  3. Mutual Fund Equity AUM grew 25%.
  4. Insurance businesses on track to breakeven.

Auditor’s Report

  1. Unmodified opinion
  2. Actuarial valuation of liabilities for Edelweiss Life Insurance Company Limited.
  3. Actuarial valuation of liabilities for ZUNO General Insurance Limited.
  4. Opinion not modified regarding reliance on other auditors' work for insurance subsidiaries.

Board Commentary

  1. Appointed Mr. Rajiv Jalota as Independent Director for 5 years.
  2. Mr. Ashok Kini resigned as Independent Director due to health reasons.
  3. Recommended a dividend of ₹ 1.50 per share on equity shares.
  4. Material uncertainty regarding Group's ability to continue as going concern (auditor's note).
  5. Future results may vary due to economic, political, and market conditions.
  6. Reassessed employee benefit obligations due to new Labour Code notification.
  7. Impact of recent GST exemption on individual life insurance policies.
  8. EAAA on track for listing journey after SEBI DRHP approval.
  9. Strategic investment by Carlyle in Nido Home Finance in process.
  10. Citius InvIT successfully completed its IPO.

Corporate Governance

  1. Ensures highest standards of governance.
  2. Appointed Mr. Rajiv Jalota as new Independent Director.
  3. Mr. Ashok Kini resigned as Independent Director.

Management Discussion & Analysis

Future Strategy

  1. Scale up profits in Asset Management businesses.
  2. Insurance businesses on track to breakeven by FY27.
  3. Focused reduction in corporate net debt.
  4. Continue customer franchise growth trajectory.

Macroeconomic Outlook

  1. Global economy faces heightened uncertainty due to geopolitical tensions.
  2. India's economy remains structurally secure, with steady growth expected.

Operational Focus Areas

  1. Scale up profits in Asset Management businesses.
  2. Insurance businesses on track to breakeven by FY27.
  3. Focused reduction in corporate net debt.
  4. Continue customer franchise growth trajectory.

Performance Drivers

  1. Alternative Asset Management FPAUM grew 32% YoY.
  2. Mutual Fund Equity AUM grew 25% YoY.
  3. Asset Reconstruction business recovered INR 8,590 Cr.
  4. MSME disbursals tripled YoY.
  5. Housing Finance disbursements up 27% YoY.
  6. General Insurance GWP grew 28% YoY.
  7. Customer base grew 31% YoY to 14 million.
  8. Corporate net debt declined 20%.

Risk Control Measures

  1. India's economy structurally secure to absorb external shocks.
  2. Monitoring developments of new Labour Codes for estimates and assumptions.

Critical Risks

  1. Geopolitical tensions and macroeconomic risks.
  2. Impact of one-time exceptional items (GST, new labour code).
  3. Volatility in interest rates and securities market.
  4. New regulations and government policies.