Fedbank Financi. Q1 FY27 Results (NSE: FEDFINA)
Signal: Earnings grew
The read
Strong Q1FY27: PAT +52.5% YoY on revenue +29.7% YoY, with asset quality improving (GNPA 1.55% vs 1.99% YoY). Cost-to-income improved 366bps YoY. Debt-equity rose to 4.89x (vs 3.89x YoY) — leverage increasing to fund growth. NIM/spread not disclosed directly; implied NII growth of 38.5% YoY suggests strong portfolio yield. PBT margin expanded 476bps YoY to 22.9% — operating leverage and credit cost control evident. EPS diluted only marginally by ESOP. The trajectory supports the FY27 targets of 20-25% AUM growth, ROA expansion, and 18% ROE if NIM sustains.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹669.93 Cr | 29.68% | 8.68% |
| EBIT | ₹153.48 Cr | 52.94% | |
| Net profit | ₹114.38 Cr | 52.49% | |
| EPS | ₹3.05 | 51.74% | |
| EBIT margin | 22.91% |
P&L walk
Total income ₹67,025 Lakh (+29.6% YoY, +8.5% QoQ) driven by interest income (+32.6% YoY); finance cost rose +25.1% YoY (NII +38.5% YoY); impairment provisions +37.8% YoY (GNPA improvement suggests prudent provisioning); employee costs +30.5% YoY; PBT ₹15,348 Lakh (+52.9% YoY); PAT ₹11,438 Lakh (+52.5% YoY); EPS ₹3.05 (+51.7% YoY).
Segments
Single segment — lending across products; no subsidiary/JV/associate as of Jun 30, 2026.
Key positives
- PAT ₹114.38 Cr, +52.5% YoY — second consecutive quarter of >50% YoY PAT growth (Q4FY26 had +55.4% for that standalone quarter).
- GNPA improved to 1.55% from 1.87% QoQ and 1.99% YoY — best level in recent quarters.
- NNPA improved to 0.96% from 1.28% QoQ and 1.24% YoY.
- Cost-to-income at 36.41% vs 40.07% YoY — 366bps improvement, indicating operating leverage.
- PCR jumped to 38.36% from 32.29% QoQ — stronger provisioning buffer.
Key concerns
- Debt-equity ratio climbed to 4.89x from 3.89x YoY and 4.61x QoQ — increasing financial leverage.
- CRAR declined to 20.71% from 22.40% a year ago — capital buffers eroding as balance sheet grows; may need capital raise.
- Impairment provisions grew +37.8% YoY, faster than revenue; though GNPA improved, provisioning coverage suggests cautious stance.
- Dividend yield 0% — no return to shareholders currently.
Research and educational content only. Not investment advice.