Edelweiss Financial Services reported robust performance for the nine months ended December 31, 2025, with Consolidated Profit After Tax (PAT) growing 45% YoY to $51 Mn (Post MI). Key highlights include strong growth in underlying businesses, such as Alternative Asset Management FPAUM growing 33% YoY, and a significant increase in customer reach to 13 Mn (up 31% YoY). The company also advanced key strategic priorities, including progress on the EAAA IPO and the successful closing of the WestBridge investment in Mutual Fund.
Consolidated Profit Performance Summary
For the nine months ended December 31, 2025, Edelweiss Financial Services Limited (EFSL) achieved a consolidated PAT (Post Minority Interest) of $51 Mn, compared to $33 Mn in the corresponding period last year, marking a 45% YoY growth. For the quarter ended December 25, the consolidated PAT stood at $29 Mn, up from $14 Mn in the previous year’s quarter.
Performance Highlights Across Key Metrics
The company demonstrated steady growth across critical performance indicators:
- PAT Growth: Consolidated PAT grew by 45% YoY over the nine-month period.
- Asset Management: Alternative Asset Management Fee Paying AUM (FPAUM) grew by 33% YoY to $4,662 Mn. Mutual Fund Equity AUM increased by 33% YoY to $9,230 Mn.
- Credit Growth: MSME and Housing Finance disbursements saw substantial growth, increasing by 84% and 38% YoY, respectively, in nine months.
- Insurance Improvement: Life Insurance (LI) losses were down by 29% YoY, and General Insurance (GI) losses declined by 24% YoY for the nine months.
- Customer Reach: Total customer reach increased to 13 Million, a 31% YoY rise, with customer assets reaching $27,200 Mn.
- Balance Sheet Strength: Consolidated liquidity remains strong at $623 Mn. Business capitalization metrics are robust, with NBFC at 30.1% Capital Adequacy and Life Insurance at 181% Solvency Ratio. Net Debt stood at $1,267 Mn as of December 25.
Business Segment Earnings Distribution (PAT)
The PAT breakdown for the nine months ended December 25 showed strong contribution from core businesses (excluding exceptional items of $(14) Mn):
- Alternative Asset Management: $25 Mn (up from $20 Mn in Dec 24).
- Asset Reconstruction: $28 Mn (down from $31 Mn in Dec 24).
- Mutual Fund: $9 Mn (up from $6 Mn in Dec 24).
Strategic Updates and Progress
The management highlighted progress across key strategic initiatives:
1. EAAA IPO: The Draft Red Herring Prospectus (DRHP) was filed on January 20, 2026, and the company is currently awaiting SEBI review and approval.
2. Mutual Fund Stake Sale: The strategic investment by WestBridge was successfully consummated in December after receiving final regulatory approval in November.
3. Housing Finance Investment: A strategic majority investment by Carlyle in Nido Home Finance (Nido), involving an investment of around $230 Mn, is pending customary regulatory approvals. This transaction is seen as a win-win-win, reinforcing Nido’s growth momentum.
4. Key Priorities Update:
- Profits of underlying businesses are scaling up, with Total Underlying Business PAT growing at a 22% CAGR over nine months.
- Insurance businesses are on track to breakeven by FY27, evidenced by a 39% reduction in combined losses for General and Life Insurance over nine months.
- Corporate net debt saw a focused reduction, falling 15% to $725 Mn from $851 Mn in December 23.
Segment Deep Dive: Alternative Asset Management (EAAA)
EAAA reported FPAUM growth of 33% YoY to $4,662 Mn. The business successfully raised $843 Mn in nine months (up 67% YoY) and was recognized as the only Indian Alternatives player in “Top PDI Fund Raisers of the Year” for 5 consecutive years. Financials show Profit After Tax rising to $9 Mn for the quarter (up from $7 Mn in Dec 24).
Segment Deep Dive: Housing Finance (Nido)
Nido demonstrated consistent growth, with AUM up 21% YoY to $534 Mn. Quarterly disbursals reached $62 Mn (up 36% YoY). Asset quality remains stable with GNPA at 2.53% and a high collection efficiency of 98.2%.
Segment Deep Dive: Insurance Businesses
General Insurance (ZGIL) saw GWP increase by 47% YoY in the quarter, reaching $45 Mn, with a Solvency Ratio of 165%. Life Insurance (ELI) reported Gross Premium of $57 Mn (up 15% YoY) and maintained a strong Solvency Ratio of 181%.
Governance and Sustainability Snapshot
The company maintains a strong governance structure, featuring a 7 Member Board with 4 Independent Directors. Shareholding remains concentrated, with the Promoter Group holding 32.7% and FPIs holding 18.3% as of December 31, 2025. EdelGive Foundation has mobilized $179 Mn through commitments and partnered with over 294 NGOs, focusing efforts across Quality Education, Sustainable Livelihoods, and Women Empowerment.
Source: BSE
