Nature of the Disclosure

Fedbank Financial Services Limited (Scrip Code: 544027) submitted its unaudited financial results for the quarter and half year ended September 30, 2026, pursuant to SEBI Listing Regulations 30, 33, 51, 52, and 54. The board meeting was held on October 15, 2026, from 11:10 a.m. to 12:25 p.m.

Key Financial Figures (INR in Lakhs)

Quarterly Performance (Q2 FY27 vs Q2 FY26 vs Q1 FY27)

  • Revenue from Operations: ₹71,941 (Q2 FY27) vs ₹53,538 (Q2 FY26) vs ₹66,993 (Q1 FY27)
  • Interest Income: ₹69,201 vs ₹50,770 vs ₹64,457
  • Fee and Commission Income: ₹2,312 vs ₹2,259 vs ₹2,411
  • Net Gain on Fair Value Changes: ₹428 vs ₹509 vs ₹125
  • Total Income: ₹71,979 vs ₹53,599 vs ₹67,025
  • Total Expenses: ₹54,179 vs ₹42,852 vs ₹51,677
  • Finance Cost: ₹28,834 vs ₹21,384 vs ₹27,269
  • Impairment on Financial Instruments: ₹2,708 vs ₹3,152 vs ₹3,406
  • Employee Benefit Expense: ₹12,654 vs ₹10,523 vs ₹12,063
  • Profit Before Tax: ₹17,800 vs ₹10,747 vs ₹15,348
  • Tax Expense: ₹4,725 vs ₹2,732 vs ₹3,910
  • Current Tax: ₹5,256 vs ₹2,568 vs ₹4,390
  • Deferred Tax: (₹531) vs ₹164 vs (₹480)
  • Net Profit for Period: ₹13,075 vs ₹8,015 vs ₹11,438
  • Earnings Per Share (₹)
  • Basic: 3.56 vs 2.15 vs 3.05
  • Diluted: 3.53 vs 2.13 vs 3.03

Half-Yearly Performance (H1 FY27 vs H1 FY26)

  • Revenue from Operations: ₹1,38,934 vs ₹1,05,198
  • Total Income: ₹1,39,004 vs ₹1,05,324
  • Total Expenses: ₹1,05,856 vs ₹84,542
  • Profit Before Tax: ₹33,148 vs ₹20,782
  • Tax Expense: ₹8,635 vs ₹5,266
  • Net Profit for Period: ₹24,513 vs ₹15,516
  • Earnings Per Share (₹)
  • Basic: 6.54 vs 4.16
  • Diluted: 6.48 vs 4.12

Balance Sheet Position (as of September 30, 2026)

  • Total Assets: ₹18,54,036 lakhs
  • Financial Assets: ₹18,17,256 lakhs (including Loans ₹16,02,001 lakhs, Investments ₹79,853 lakhs)
  • Non-Financial Assets: ₹36,780 lakhs
  • Total Liabilities and Equity: ₹18,54,036 lakhs
  • Financial Liabilities: ₹15,29,838 lakhs (including Borrowings ₹11,79,798 lakhs, Debt Securities ₹1,89,449 lakhs)
  • Non-Financial Liabilities: ₹7,702 lakhs
  • Equity: ₹3,16,496 lakhs (Share Capital ₹37,514 lakhs, Reserves ₹2,78,982 lakhs)

Cash Flow Statement (H1 FY27)

  • Net Cash Used in Operating Activities: (₹71,888) lakhs
  • Net Cash Used in Investing Activities: (₹39,203) lakhs
  • Net Cash from Financing Activities: ₹54,486 lakhs
  • Net Decrease in Cash: (₹56,605) lakhs
  • Cash and Cash Equivalents at End: ₹77,368 lakhs

Capital Structure Impact

  • Paid-up equity share capital increased to ₹37,514 lakhs as of September 30, 2026 (from ₹37,421 lakhs as of March 31, 2026).
  • During the quarter, the company allotted 235,701 equity shares of ₹10 each fully paid up on exercise of options by employees under ESOS schemes.
  • No options were granted during the quarter under ESOS 2024 or ESOS 2018.

Security Cover

  • The company maintained security cover for NCDs outstanding ₹27,875 lakhs, secured by first ranking pari passu charge over eligible receivables and current assets.
  • Contractually required to maintain minimum cover of 1.10 times obligations.
  • Independent auditors V. Sankar Aiyar & Co. certified the security cover compliance.

Financial Ratios (as of September 30, 2026)

  • Debt-Equity Ratio: 4.61
  • Current Liability Ratio: 0.41
  • Total Debt to Total Assets: 0.79
  • Net Worth: ₹3,16,496 lakhs
  • CRAR: 20.96%
  • GNPA: 1.82%
  • NNPA: 1.18%
  • Liquidity Coverage Ratio: 156.85%
  • Provision Coverage Ratio: 35.37%
  • Net Profit Margin: 18.17% (Q2), 17.63% (H1)

RBI Circular Compliance

  • Exposure to accounts classified as standard consequent to implementation of resolution plan: ₹4,697 lakhs
  • Of which, ₹91 lakhs slipped into NPA during half-year, ₹385 lakhs paid by borrower
  • Loan transfers: 48 accounts with aggregate principal outstanding transferred, consideration ₹3 lakhs
  • Direct assignment of loans not in default: ₹87,689 lakhs with weighted average residual maturity of 23 months

Related Party Transactions (H1 FY27)

  • Interest received from Federal Bank (promoter) on fixed deposits/current account: ₹9.40 lakhs
  • Interest paid to Federal Bank on term loan: ₹3,698.79 lakhs
  • Interest on NCDs: ₹1,164.95 lakhs
  • MTM gain on derivative instruments: ₹698.26 lakhs
  • Brand usage charges: ₹184.97 lakhs
  • Remuneration to MD & CEO: ₹307.85 lakhs
  • Remuneration to CFO: ₹158.22 lakhs
  • Remuneration to Company Secretary: ₹39.58 lakhs
  • Director sitting fees: ₹46.00 lakhs across multiple directors

Audit and Review

  • The unaudited financial results were reviewed by joint statutory auditors KKC & Associates LLP and V. Sankar Aiyar & Co., who issued an unmodified limited review report.
  • The audit committee reviewed and recommended the results prior to board approval.
  • The company will publish the results in Business Standard (English) and Pratahkal (Marathi) newspapers.

Other Matters

  • The company has no subsidiaries, associates, or joint ventures as of September 30, 2026.
  • Business comprises only one segment: lending loans.
  • Previous period figures have been regrouped/reclassified for comparability.