Edelweiss.Fin. Q1 FY27 Results (NSE: EDELWEISS)
Signal: Earnings grew
The read
Consolidated PAT jumped 83% YoY to ₹122 Cr, driven by strong performance in Asset Management (Alternatives PAT up 45% to ₹81 Cr) and Asset Reconstruction, with Insurance losses narrowing. However, EPS growth (29%) lagged PAT growth due to share dilution, and headline profit is inflated by other income (₹90 Cr vs PBT ₹122 Cr). The Capital business (NBFC) remained in loss though improved sequentially.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,418.81 Cr | 6.0% | 22.8% |
| EBIT | ₹682.93 Cr | N/A | |
| Net profit | ₹122.22 Cr | 83.0% | |
| EPS | ₹1.42 | 29.1% | |
| EBIT margin | 29.3% |
P&L walk
PAT grew 83% YoY driven by strong performance in asset management (Alternatives PAT +45%) and asset reconstruction, with insurance losses narrowing.
Segments
Capital business (NBFC) remains a drag with a PBT loss of ₹59 Cr (improved from ₹122 Cr loss in Q4FY26); Insurance losses narrowed to ₹34 Cr from ₹8 Cr in Q4; Asset Reconstruction and Alternatives are the key profit engines, contributing ₹107 Cr and ₹106 Cr respectively.
Key positives
- Consolidated PAT up 83% YoY to ₹122 Cr.
- Alternatives PAT up 45% YoY to ₹81 Cr with ROE expansion to 29%.
- MSME loan disbursements tripled YoY to ₹353 Cr.
- General Insurance GWP up 58% YoY to ₹415 Cr.
- Mutual Fund equity AUM crossed ₹1 Tn in July 2026.
- Asset Reconstruction business maintained strong profitability with RoE improvement to 13%.
Key concerns
- EPS growth (29%) significantly lags PAT growth (83%) due to share dilution.
- Capital business (NBFC) still loss-making at ₹59 Cr PBT loss, though improved from ₹122 Cr in Q4.
- Insurance losses narrowed but remain negative at ₹34 Cr.
- Other income of ₹90 Cr is 101% of PBT, indicating core operating profit is low.
Earnings quality: includes non-operating other income
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