Summary of quarterly results filing for Edelweiss Financial Services Ltd published on 07 Aug, 2025
Below is a structured extraction and summary of the relevant and actionable financial information from Edelweiss Financial Services Limited’s Q1 FY26 results filing dated August 7, 2025.
1. Auditor’s Note
- Type of report: Limited Review Report by Nangia & Co. LLP (Statutory Auditors).
- Opinion: Unmodified (clean) review report on both standalone and consolidated financial results.
- Qualifications/Concerns: None reported.
- Additional notes:
- Actuarial valuations for Life Insurance and General Insurance subsidiaries are certified by appointed actuaries and relied upon by auditors.
- Compliance with all covenants under Debenture Trust Deeds confirmed.
- No deviations or variations in use of funds raised via NCDs.
- Limited assurance engagement performed on security cover and covenant compliance; no issues noted.
Conclusion: Auditor’s note contains no qualifications or concerns; standard boilerplate with clean review opinion.
2. Financial Performance
Consolidated Financials (₹ Crores)
| Metric | Q1 FY26 (Jun 30, 2025) | Q4 FY25 (Mar 31, 2025) | Q1 FY25 (Jun 30, 2024) | FY25 (Mar 31, 2025) |
|---|---|---|---|---|
| Revenue from operations | 2,245.65 | 2,285.51 | 2,293.39 | 9,271.89 |
| Other income | 35.43 | 57.75 | 43.18 | 246.82 |
| Total income | 2,281.08 | 2,343.26 | 2,336.57 | 9,518.71 |
| Finance costs | 685.77 | 550.32 | 700.82 | 2,537.04 |
| Impairment on financial instruments | 33.15 | (206.44) | 55.13 | (174.92) |
| Change in valuation of credit impaired loans | 168.30 | 207.73 | 150.34 | 681.91 |
| Employee benefits expense | 273.18 | 292.06 | 287.07 | 1,318.19 |
| Depreciation & amortisation | 35.81 | 43.21 | 33.56 | 147.14 |
| Change in insurance policy liability (actuarial) | 301.05 | 338.71 | 373.41 | 1,283.73 |
| Policy benefits paid | 287.26 | 413.20 | 265.23 | 1,278.57 |
| Other expenses | 386.17 | 508.15 | 366.31 | 1,645.43 |
| Total expenses | 2,170.69 | 2,146.94 | 2,231.87 | 8,717.09 |
| Profit before tax | 110.39 | 196.32 | 104.70 | 801.62 |
| Tax expense (Current + Deferred) | 7.70 (124.52 -116.82) | 38.20 (1.40 + 36.60) | 19.40 (21.30 -1.90) | 265.80 (341.18 -75.38) |
| Net profit | 102.69 | 158.32 | 85.30 | 535.82 |
| Other comprehensive income (OCI) | (152.16) | (788.91) | (42.04) | (773.14) |
| Total comprehensive income | (49.47) | (630.59) | 43.26 | (237.32) |
| Net profit attributable to owners | 66.77 | 105.34 | 58.89 | 398.83 |
| Earnings per share (Basic) ₹ | 1.10 | 1.72 | 0.95 | 5.89 |
| Earnings per share (Diluted) ₹ | 1.10 | 1.70 | 0.95 | 5.81 |
Standalone Financials (₹ Crores)
| Metric | Q1 FY26 (Jun 30, 2025) | Q4 FY25 (Mar 31, 2025) | Q1 FY25 (Jun 30, 2024) | FY25 (Mar 31, 2025) |
|---|---|---|---|---|
| Interest income | 93.35 | 99.64 | 107.39 | 414.04 |
| Dividend income | 58.95 | 0 | 0.26 | 41.31 |
| Fee and commission income | 11.12 | 10.24 | 5.78 | 36.22 |
| Net gain/(loss) on fair value changes | 2.08 | 0.47 | (138.87) | (153.20) |
| Total revenue from operations | 165.50 | 110.35 | (25.44) | 338.37 |
| Other income | 1.30 | 1.08 | 0 | 45.04 |
| Total income | 166.80 | 111.43 | (25.44) | 383.41 |
| Finance costs | 88.36 | 84.12 | 77.77 | 344.13 |
| Impairment on financial instruments | 0.08 | (0.12) | 0.20 | 0.70 |
| Employee benefits expense | (2.40) (reversal) | 2.52 | 5.34 | 34.20 |
| Depreciation & amortisation | 0.05 | 0.07 | 0.05 | 0.23 |
| Other expenses | 10.25 | 15.54 | 9.00 | 58.41 |
| Total expenses | 96.34 | 102.13 | 92.36 | 437.67 |
| Profit/(loss) before tax | 70.46 | 9.30 | (117.80) | (54.26) |
| Tax expense (Current + Deferred) | 5.12 (3.60 + 1.52) | 10.95 (5.69 + 5.26) | (29.14) (0.02 -29.16) | (2.35) (5.71 -8.06) |
| Net profit/(loss) | 65.34 | (1.65) | (88.66) | (51.91) |
| Other comprehensive income | (0.25) | (1.19) | 0 | (1.19) |
| Total comprehensive income/(loss) | 65.09 | (2.84) | (88.66) | (53.10) |
| Earnings per share (Basic) ₹ | 0.70 | (0.02) | (0.99) | (0.57) |
| Earnings per share (Diluted) ₹ | 0.70 | (0.02) | (0.99) | (0.56) |
Note: Employee benefits expense includes a reversal of bonus provision of ₹8.06 Cr in Q1 FY26.
Key Ratios (Consolidated vs Standalone)
| Ratio / Metric | Q1 FY26 Consolidated | FY25 Consolidated | Q1 FY26 Standalone | FY25 Standalone |
|---|---|---|---|---|
| Debt Equity Ratio | 3.17 | 3.02 | 0.57 | 0.56 |
| Net Worth (₹ Cr) | 5,774.17 | 5,918.17 | 5,745.73 | 5,517.09 |
| Interest Service Coverage Ratio | 1.16 | 1.32 | 1.80 | 0.84 |
| Net Profit Margin (%) | 4.50% | 5.63% | 39.17% | (13.54)% |
| Total Debt to Total Assets | 0.44 | 0.43 | 0.36 | 0.35 |
| Capital Redemption Reserve (₹ Cr) | 36.24 | 31.43 | 0.20 | 0.20 |
| Debenture Redemption Reserve (₹ Cr) | 268.41 | 277.70 | NA | NA |
3. Detailed Notes / Management Commentary
-
Profitability:
- Consolidated pre-minority interest PAT grew 20% YoY to ₹103 Cr in Q1 FY26.
- Post minority interest PAT up 13% YoY to ₹67 Cr.
- Insurance businesses combined losses reduced by 93% YoY; on track to break-even by FY27.
- Profits for underlying businesses have grown at a 29% CAGR over last two years.
- Corporate net debt reduced by 26% YoY to ₹6,350 Cr.
- Liquidity stands at ₹4,834 Cr.
- Capital adequacy across credit entities nearly 33%.
-
Business Highlights:
- Alternative Asset Management AUM grew 12% YoY to ₹62,970 Cr.
- Mutual Fund Equity AUM up 38% YoY to ₹72,600 Cr; total AUM up 12% YoY to ₹1,52,200 Cr.
- Asset Reconstruction business recovered ₹4,753 Cr in the quarter, 3.5x YoY.
- MSME loans disbursed ₹119 Cr, 42% via co-lending model.
- Wholesale book reduced 39% YoY to ₹2,400 Cr.
- Housing Finance disbursements ₹293 Cr; AUM ₹4,301 Cr, up 6% YoY; GNPA 2.50%, NNPA 2.06%, collection efficiency 97.6%.
- General Insurance GWP grew 11% YoY to ₹263 Cr; losses declined 38% YoY.
- Life Insurance gross premium ₹286 Cr; AUM ₹9,649 Cr, up 16% YoY; embedded value ₹2,219 Cr, up 11% YoY; profitability improved to ₹2 Cr from loss of ₹49 Cr YoY.
-
Corporate Actions:
- New co-lending partnership with DCB Bank in Housing Finance.
- Partnership with State Bank of India continues.
- IPO of EAAA business targeted around April 2026.
-
Accounting / Policy Notes:
- No material changes in accounting policies reported.
- Employee benefits expense includes reversal of bonus provision of ₹8.06 Cr in standalone results.
- No deviations in use of funds raised via NCDs.
- Security cover maintained as per Debenture Trust Deeds.
4. Segment Information (Consolidated)
| Segment | Q1 FY26 Revenue (₹ Cr) | Q4 FY25 Revenue (₹ Cr) | Q1 FY25 Revenue (₹ Cr) | FY25 Revenue (₹ Cr) | Q1 FY26 PBT (₹ Cr) | Q4 FY25 PBT (₹ Cr) | Q1 FY25 PBT (₹ Cr) | FY25 PBT (₹ Cr) | Segment Assets (Q1 FY26) | Segment Liabilities (Q1 FY26) | Capital Employed (Q1 FY26) |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Alternatives business | 211.65 | 185.76 | 187.00 | 786.54 | 77.62 | 58.59 | 84.36 | 284.25 | 2,070.80 | 1,024.87 | 1,045.93 |
| Capital business | 673.21 | 667.99 | 963.95 | 3,747.59 | (122.46) | (49.05) | (75.65) | 71.04 | 20,844.85 | 20,598.61 | 246.24 |
| Insurance business | 855.02 | 1,137.30 | 849.33 | 3,637.50 | (4.28) | 20.15 | (59.74) | (175.28) | 13,092.30 | 11,888.79 | 1,203.51 |
| Asset reconstruction business | 393.80 | 224.03 | 221.35 | 882.50 | 123.11 | 155.41 | 114.42 | 528.05 | 4,195.71 | 1,250.31 | 2,945.40 |
| Mutual Fund business | 76.60 | 57.77 | 72.47 | 247.66 | 33.80 | (0.38) | 29.85 | 64.32 | 285.09 | 54.39 | 230.70 |
| Other business | 70.80 | 70.41 | 42.47 | 216.92 | 2.60 | 11.60 | 11.46 | 29.24 | 660.19 | 557.80 | 102.39 |
| Total | 2,281.08 | 2,343.26 | 2,336.57 | 9,518.71 | 110.39 | 196.32 | 104.70 | 801.62 | 41,148.94 | 35,374.77 | 5,774.17 |
5. Capex, Projects, and Corporate Activity
- No explicit capex figures disclosed.
- New partnerships in Housing Finance (DCB Bank) and deepening with SBI.
- IPO planned for EAAA business around April 2026.
- Corporate net debt reduced by ₹4,845 Cr YoY.
- No reported writedowns, impairments, or restructuring beyond normal business operations.
- Employee benefits expense reversal of ₹8.06 Cr in standalone results (bonus provision reversal).
6. Standalone vs Consolidated
- Both standalone and consolidated results provided.
- Consolidated results include 21 subsidiaries and multiple trusts.
- Consolidated PAT (pre minority interest) for Q1 FY26: ₹103 Cr (20% YoY growth).
- Standalone PAT for Q1 FY26: ₹65.34 Cr (profit vs loss in prior year).
- Consolidated net worth: ₹5,774 Cr; Standalone net worth: ₹5,745 Cr.
- Consolidated debt equity ratio higher (3.17) vs standalone (0.57) reflecting leverage in subsidiaries.
Summary for Investment Analysis Team
| Aspect | Key Points |
|---|---|
| Auditor’s Note | Clean, unmodified review reports; no qualifications or concerns. |
| Consolidated Financials | Q1 FY26 PAT ₹102.69 Cr (+20% YoY); Revenue stable ~₹2,281 Cr; EPS ₹1.10; Net profit margin 4.5%. |
| Standalone Financials | Q1 FY26 PAT ₹65.34 Cr (vs loss in prior year); Revenue ₹166.8 Cr; EPS ₹0.70; strong margin 39%. |
| Business Highlights | Strong growth in AUMs (Alt Asset Mgmt, Mutual Funds); Insurance losses down 93% YoY; Housing Finance stable asset quality. |
| Balance Sheet | Net worth ~₹5,774 Cr; Corporate net debt down 26% YoY to ₹6,350 Cr; Liquidity ₹4,834 Cr; Capital adequacy ~33%. |
| Segment Performance | Asset Reconstruction and Alternatives profitable; Capital business loss narrowed; Insurance losses shrinking. |
| Corporate Activity | New co-lending partnerships; IPO planned for EAAA business in April 2026; no deviations in fund usage. |
| Accounting Notes | No material policy changes; bonus provision reversal of ₹8.06 Cr in standalone results. |
| Risks / Caveats | OCI losses significant due to market/actuarial adjustments; insurance actuarial valuations certified by appointed actuaries. |
This detailed extraction provides a comprehensive view of Edelweiss Financial Services Limited’s Q1 FY26 financial and operational performance, suitable for investment decision-making and further analysis.