Mumbai, India — April 28, 2026
Non-banking financial company (NBFC) Fedbank Financial Services Limited, also known as Fedfina, reported a strong financial performance for the fourth quarter of fiscal year 2025–26, with net profit rising 40.3% year-on-year to ₹100.5 crore.
The earnings growth was supported by robust expansion in lending, higher income, and improved asset quality.
Core Income Shows Strong Growth
Fedfina’s net interest income (NII) grew 23% to ₹348.8 crore, compared with ₹283.3 crore in the same period last year.
The company’s net total income increased 17.5% to ₹378 crore, while operating profit rose 24% to ₹162.8 crore, reflecting strong operational performance.
AUM Expansion Drives Business Growth
The company’s assets under management (AUM) surged 27.5% to ₹20,153 crore, indicating steady expansion of its lending portfolio.
Fedfina also continued its physical expansion, adding 34 new branches during the quarter, taking the total additions for FY26 to 148 branches.
Asset Quality Improves
Fedfina reported improvement in asset quality metrics:
- Gross NPA declined to 1.9%, compared with 2.1% in December 2025
- Net NPA stood at 1.3%, reflecting stable credit quality
The improvement highlights the company’s focus on disciplined lending and risk management.
Market Reaction
Despite the strong earnings performance, shares of Fedfina came under pressure. The stock declined 3.89% on the National Stock Exchange (NSE), closing at around ₹151, indicating cautious investor sentiment.
Outlook
Fedfina’s Q4 results highlight a balanced growth trajectory supported by strong AUM expansion and improving asset quality. However, market participants may remain watchful of valuation levels and broader NBFC sector trends in the near term.
