Edelweiss Financial Services (EDELWEISS) Q1 26/27 earnings summary

Executive summary

• Consolidated PAT (post MI) rose 83% year-over-year to INR 122 Cr for the quarter, with revenue at INR 2,419 Cr and robust growth across key business segments.

• Customer reach expanded 30% YoY to over 14 million, with customer assets up 23% YoY to INR 2.8 Tn.

• Corporate net debt declined 10% YoY to INR 5,725 Cr, and book value per share rose 19% YoY to INR 57.

• Board approved unaudited financial results and a public issue of non-convertible debentures up to INR 1,000 Cr.

• Wholesale book wind-down nearly complete, reduced from INR 18,000 Cr to INR 600 Cr.

Financial highlights

• Alternative Asset Management Fee Paying AUM grew 27% YoY to INR 48,623 Cr; PAT up 45% YoY to INR 81 Cr; annualized ROE at 29%.

• Mutual Fund Equity AUM increased 32% YoY to INR 96,000 Cr; SIP book up 63% YoY to INR 696 Cr; PAT up 33% YoY to INR 37 Cr.

• Asset Reconstruction: INR 304 Cr recovered; retail assets acquisition at INR 300 Cr; annualized ROE improved to 13%.

• NBFC MSME disbursals tripled YoY to INR 353 Cr; gross loan book up 90% YoY to INR 2,127 Cr; GNPA at 2.19%.

• Housing Finance AUM up 14% YoY to INR 4,900 Cr; disbursals at INR 218 Cr; GNPA at 2.91%.

• General Insurance GWP up 58% YoY to INR 415 Cr; policies issued up 68% YoY.

• Life Insurance AUM up 13% YoY to INR 10,933 Cr; gross premium at INR 287 Cr.

Outlook and guidance

• IPO of EAAA planned for Q3 FY27 remains on track, with DRHP approved by SEBI.

• Carlyle's strategic investment in Nido Home Finance expected to close by September 2026.

• Focus on scaling profitability in asset management and achieving breakeven in insurance businesses by FY 2027.

• MSME disbursement target set at INR 2,000 Cr for FY 2027.

• Corporate debt reduction targeted below INR 4,000 Cr by year-end, with further reduction to INR 3,000 Cr planned.