Edelweiss Financial Services’ June Quarter Profit Up by 20%

Mumbai, August 7, 2025 – Edelweiss Financial Services Limited (NSE: EDELWEISS, BSE: 532922) reported a  20% year-on-year (YoY) growth in consolidated net profit for Q1FY26, reaching ₹102.69 crore. This came despite a slight dip in sequential revenue.

Stock Performance

As of 3:30 PM IST on August 7, 2025, the stocks closed at ₹98.00, up 0.60% for the day, with a market capitalization of ₹9,210 crore, a P/E ratio of 16.87, and a 52-week range between ₹63.20 and ₹145.53.

Q1FY26 Consolidated Financial Highlights

Revenue and total income saw marginal declines both YoY and QoQ, primarily due to softer interest income and elevated finance costs. However, expenses were well-managed, supporting a 5% YoY rise in profit before tax. Net profit rose to ₹102.69 crore, backed by improved profitability in key business segments.

Earnings per share stood at ₹1.10, slightly above the ₹0.95 reported in Q1FY25, though lower sequentially. Notably, the company recorded a significant ₹738 crore gain on fair value changes-its second-highest in five quarters-offsetting a dip in deferred tax benefits which led to higher tax expenses this quarter.

Key Business Metrics

The insurance vertical posted a 5.6% YoY growth in premium income at ₹423.55 crore. Fee and commission income rose 24% YoY, reflecting the strength of Edelweiss’s capital-light retail business model. While interest income declined slightly, high finance costs and insurance liability adjustments remained steady.

Net Profit Attribution (Q1FY26)

Out of the ₹102.69 crore profit, ₹66.77 crore was attributable to company shareholders, with the rest going to non-controlling interests. The increase in shareholder earnings aligns with Edelweiss’s focus on growing its high-margin segments.

Comprehensive Income Breakdown

Despite posting strong core profits, the company reported a comprehensive loss of ₹49.47 crore due to market-related valuation changes under Other Comprehensive Income (OCI), reflecting broader market volatility.

EPS Movement

The company maintained an EPS of ₹1.10 for Q1FY26, up from ₹0.95 in Q1FY25 but lower than ₹1.72 in the previous quarter. The decline QoQ was due to one-off factors including tax adjustments and market-linked income.

Strategic Outlook

Edelweiss continues to focus on strengthening its retail franchise and aims to break even in its insurance vertical by FY27. Liquidity remains strong at ₹4,834 crore, and corporate net debt has been reduced by 26% YoY. Chairman Rashesh Shah confirmed that the IPO of Edelweiss Alternative Asset Advisors is on track for April 2026, which is expected to significantly unlock value for the company.

REF:https://nsearchives.nseindia.com/corporate/EDELWEISS_07082025141928_EFSLOUTCOME.pdf

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