Edelweiss Financial Services Limited (EFSL) has released an investor presentation titled “Understanding the P&L of the Company.” The document outlines the consolidated Profit After Tax (PAT) as a sum of two distinct components: the Operating Business Entities (Underlying Businesses) and the Holding Company Entities (Corporate). Underlying Businesses show strong historical PAT growth, while the Corporate segment’s PAT is expected to range between INR (100) Cr and INR 100 Cr annually.
EFSL’s Dual P&L Structure
Edelweiss Financial Services Limited (EFSL) structures its consolidated Profit After Tax (PAT) as the sum of two key segments:
- Operating Business Entities (Underlying Businesses): These comprise seven independent businesses with dedicated management and standalone P&L statements.
- Holding Company Entities (Corporate): This segment focuses on oversight functions, including capital allocation, treasury services, and incubating new ventures.
The Consolidated PAT is mathematically derived as: PAT of Underlying Businesses + Corporate PAT.
Performance of Underlying Businesses
Asset Management Segments
The Total Asset Management Businesses demonstrated robust PAT growth, increasing from INR 69 Cr in Mar-22 to INR 403 Cr (annualized nine-month run rate) in Mar-26, achieving a 28% CAGR. The PAT for the Underlying Businesses is projected to continue growing at 20%.
| Business Segment | Metric | Mar 22 (INR Cr) | Mar 24 (INR Cr) | Mar 26* (INR Cr) |
| Alternative Asset Mgt | PAT | 49 | 175 | 297 |
| ROE | 26.6% | 27.3% | 25.0% | |
| Mutual Fund | PAT | 20 | 38 | 106 |
| ROE | 11.7% | 17.3% | 32.1% | |
| Total Asset Mgt Businesses | PAT | 69 | 213 | 403 |
| ROE | 19.4% | 24.7% | 26.5% |
Credit Businesses Segments
The Total Credit Businesses segment saw PAT decrease from INR 524 Cr in Mar-24 to INR 389 Cr in Mar-26*, resulting in an ROE of 6.2% for the latest period.
| Business Segment | Metric | Mar 22 (INR Cr) | Mar 24 (INR Cr) | Mar 26* (INR Cr) |
| Asset Reconstruction | PAT | 253 | 355 | 339 |
| ROE | 10.8% | 11.9% | 10.3% | |
| NBFC | PAT | 98 | 150 | 20 |
| ROE | 2.5% | 4.1% | 0.9% | |
| Housing Finance | PAT | 14 | 19 | 31 |
| ROE | 1.8% | 2.4% | 3.6% | |
| Total Credit Businesses | PAT | 365 | 524 | 389 |
| ROE | 5.2% | 7.0% | 6.2% |
Insurance Businesses Segments
Both General Insurance and Life Insurance segments reported PAT losses across the entire reporting period up to Mar-26*. Total Insurance Businesses PAT loss improved from (INR 311 Cr) in Mar-22 to (INR 189 Cr) in Mar-26*.
| Business Segment | Metric | Mar 22 (INR Cr) | Mar 24 (INR Cr) | Mar 26* (INR Cr) |
| General Insurance | PAT | (105) | (123) | (46) |
| Net Worth | 135 | 249 | 348 | |
| Life Insurance | PAT | (206) | (157) | (143) |
| Net Worth | 619 | 719 | 588 | |
| Total Insurance Businesses | PAT | (311) | (280) | (189) |
Corporate Segment P&L Drivers
The Corporate segment’s revenue is primarily driven by Capital Gains and Dividends, noted as inherently volatile due to episodic fair valuation gains.
Cost Structure
- Net Interest Expense: Expected to decrease as corporate net debt declines.
- Operating Expense: Expected to remain steady.
The key takeaway for the Corporate segment is that the PAT ranges between INR (100) Cr and INR 100 Cr on an annual basis.
Financial Definitions Note
The document specifies that Mar-26 numbers are a simple annualization of the nine-month ended Dec 25 figures. Furthermore, PAT for the quarter and nine months ended Dec 25 excludes exceptional items such as labour code impact, GST impact in Life Insurance (LI), and ESOP expenses (pre-tax).
Source: BSE
