Fedbank Financial Services Ltd(FEDFINA)

NSE: FEDFINABSE: 544027

₹ 149.4-4.26%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 5,605 crWebsite: www.fedfina.comUpdated: 24 Oct 2026

About

Fedbank Financial Services Limited (Fedfina) is a Mumbai-headquartered NBFC promoted by The Federal Bank Limited, focused on lending to Emerging Self-Employed Individuals and MSMEs through gold loans, mortgage loans and wholesale finance. As of Q2 FY27, total AUM stood at ₹22,035 Cr, up 36.6% year-on-year, with gold loans making up 54.1% of AUM. The company operates 831 branches across 18 states and UTs, and reported FY26 revenue of ₹2,223.6 Cr.^[1][2][3]

Business segments and loan book mix

Retail Finance made up 97.5% of revenue and Distribution 2.4% in FY24.^[4]
Gold Loan AUM grew 77% YoY to ₹11,917 Cr in Q2 FY27 and is now 54.1% of total AUM.^[2]
Mortgage AUM grew 13.5% YoY to ₹9,982 Cr in Q2 FY27.^[2]
98.9% of AUM and 99.6% of AUF were fully secured by collateral as of FY26.^[5]
Unsecured business loans fell from 10% of the book at the start of FY26 to under 0.6% by December 2025. The ₹886 Cr MSME portfolio was 100% assigned in H1 FY26.^[6]

Branch network and distribution

74 new branches opened in Q2 FY27, taking the network to 831 branches across 18 states and UTs; gold branches rose to 706.^[2]
The top 5 states' share of AUM fell to 74.5% in Q2 FY27, from 78.7% in FY23.^[2]
70 MSME Hubs (ST LAP 'Vyapar' branches) were moved into gold loan premises in FY26, releasing duplicate leases.^[5]
Around 75% of business was originated by in-house teams as of FY26, with DSA partners at 25%.^[5]
As of FY26, the Fedfina Loans app had over 14 lakh downloads, over 86% of loan accounts had completed ENACH registration digitally, and over 67% of monthly collections came through digital channels.^[5]

Key operating metrics

AUM was ₹22,035 Cr in Q2 FY27, up 36.6% YoY. Disbursals were ₹6,676 Cr, up 28.3% YoY and down 1.2% QoQ.^[2]
NIM (core NII to average assets) was 8.8% in Q2 FY27. The daily average cost of borrowing was 7.79% in Q2 FY27.^[2]
Gross Stage 3 was 1.8% in Q2 FY27 (-8 bps YoY) and Net Stage 3 was 1.2% (-12 bps YoY).^[2]
Credit cost was 0.6% in Q2 FY27, against 0.8% in Q1 FY27.^[2][1]
CRAR was 21.0% in Q2 FY27 (-68 bps YoY), against 20.71% in Q1 FY27.^[2][1]
Cost-to-income was 52.5% in Q2 FY27, 439 bps better YoY. RoA was 2.8% (+43 bps YoY) and RoE was 17.0%.^[2]

Gold loan operations

Gold tonnage grew 16% YoY in Q2 FY27. The FY27 target is 10 - 12% tonnage growth.^[2][1]
Gold disbursals fell from ₹6,087 Cr in Q1 FY27 to ₹5,822 Cr in Q2 FY27.^[2]
Gold under custody grew 12% YoY to 12.6 tonnes at the end of FY26, and gold loan disbursements in FY26 reached ₹28,326 Cr.^[5]
Doorstep Gold Loan AUM grew 108% YoY to ₹1,730 Cr, or 17% of gold AUM, as of FY26.^[5]

Customers and market

There were 3.44 lakh active customers and 455 customers per branch as of FY26. The target segments are Emerging Self-Employed Individuals and MSMEs.^[5]
About 76% of CIBIL-scored AUM came from customers with CIBIL scores above 700 as of FY26.^[5]
The organised gold loan market crossed ₹15 Lakh Crores in FY26. Banks hold an estimated 82% share, with NBFCs holding the rest.^[5]

Funding and capital

The External Commercial Borrowings programme was expanded to USD 250 million, about 17% of total debt, as of FY26.^[5]
Fixed-rate borrowings rose from 11% to 29% of total borrowings by Q3 FY26.^[6]
Debt to equity rose from 4.6x to 4.89x in Q1 FY27 after problems moving to new co-lending partners pushed co-lending business onto Fedfina's own balance sheet.^[1]
Net direct assignment income fell to ₹7 Cr in FY26, from ₹66 Cr in FY25.^[7]

Expansion plans

200 branch additions are planned for FY27. Management puts branch capacity at ₹60 - 65 Cr AUM per branch, against ₹16.5 Cr at the end of FY26.^[1]
FY27 guidance as of Q1 FY27: entity AUM growth of 20 - 22% assuming flat gold prices, with Gold Loan AUM growth of 25 - 30% and Mortgage AUM growth of 15 - 20%.^[1]
Jagadeesh Rao now heads Gold Loans, ST LAP and Home Loans together, aiming to offer ST LAP through the ~400 - 500 gold branches that do not yet offer it.^[1]

Recent developments

True North Fund LLP sold its entire ~6.86% stake (25.7 million shares) in a block deal, which Nomura India Equity Fund bought. Federal Bank's 60.7% stake is unchanged.^[1]
RBI's new gold loan LTV framework took effect on April 1, 2026 and disrupted co-lending partners in the near term.^[1]
In Q1 FY27, Shardul Kadam became Chief Transformation Officer and George Oommen joined as Business Head - Gold Loans.^[1]

Market Cap

₹5,605 Cr

High / Low

₹178 / 119

Stock P/E

12.9

Price / Book

1.8

Book Value

₹78

EPS

₹9.2

No. of Shares

37.42 Cr

ROE

12.6%

Debt / Equity

4.61

Sales

₹2,224 Cr

Net Profit

₹344 Cr

Promoter holding

60.6%

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