Q2 Profit Soars 63% to ₹131 Crore: NII Jumps 37% as AUM Crosses 22000 Cr
Fedbank Financial Services unveiled a robust financial performance for the second quarter ended September 30, 2026, posting an impressive 63.1% year-on-year surge in consolidated net profit to ₹130.8 crore compared to ₹80.2 crore reported in the corresponding period of the previous fiscal year. The retail non-banking financial company (NBFC) experienced a sharp expansion in its core lending spreads, which propelled its Net Interest Income (NII) up by 37.4% to ₹403.7 crore against ₹293.9 crore in Q2 FY26. Total revenue from operations advanced strongly to ₹719 crore from ₹535 crore twelve months earlier, while net total income climbed 33.9% to ₹431.5 crore, reflecting healthy credit origination across semi-urban and urban MSME lending ecosystems.
Operating Profit Expands 47.5% as Lower Credit Costs Drive Pre-Tax Earnings to ₹178 Crore
The lender's operational leverage delivered significant bottom-line efficiency, with operating profit climbing 47.5% year-on-year to ₹205.1 crore from ₹139 crore in the year-ago quarter. Enhanced underwriting standards and proactive portfolio tracking helped trim credit costs down to ₹27.1 crore compared to ₹31.5 crore a year prior, providing an additional fillip to underlying earnings. Consequently, profit before tax (PBT) expanded 65.6% to reach ₹178 crore against ₹107.5 crore in Q2 FY26, easily absorbing an increased tax expense of ₹47.3 crore. Demonstrating healthy capital productivity, Fedbank Financial delivered an annualized Return on Assets (ROA) of 2.8% and a Return on Equity (ROE) of 17.0% for the July-September quarter.
AUM Surges 36.6% to ₹22,035 Crore as Book Value Climbs to ₹84.4 Per Share
The company's aggregate Assets Under Management (AUM) expanded by 36.6% year-on-year to reach ₹22,035 crore compared to ₹16,136 crore as of September 30, 2025, driven by diversified demand across retail collateralized loan categories. Total loan disbursements for the second quarter registered a 28.3% increase to ₹6,676 crore versus ₹5,205 crore in Q2 FY26, confirming steady credit appetite. Bolstering balance-sheet resilience, total shareholder funds increased 16.8% to ₹3,165 crore from ₹2,709.8 crore, lifting the company's book value per share to ₹84.4 from ₹72.5 year-on-year as the NBFC continues to consolidate its competitive positioning across regional credit markets.
