Edelweiss Financial Services Ltd – Q4 FY26 Results

key financial highlights

• Revenue from Operations:
  • Total Income (Q4 FY26): ₹1,969 Cr
    • QoQ Change: -58.2%
    • YoY Change: -15.9%
  • Previous Quarter (Q3 FY26): ₹4,715 Cr
  • Previous Year (Q4 FY25): ₹2,343 Cr
• Profit After Tax (PAT):
  • PAT (Q4 FY26): ₹131.96 Cr
    • QoQ Change: -51.2%
    • YoY Change: -16.6%
  • Previous Quarter (Q3 FY26): ₹270.36 Cr
  • Previous Year (Q4 FY25): ₹158.32 Cr
• QoQ Performance:
  • Revenue Trend: Sharp Decline
  • Profit Trend: Weak

Margin Analysis

Key Observations:

• Total Expenses: ₹2,016 Cr vs ₹3,828 Cr QoQ
• Cost ratio remains high despite revenue drop
• Finance costs stable (~₹561 Cr)

Insight:

• Margins are Volatile, heavily influenced by:
  • Fair value changes
  • Credit impairment adjustments
  • Insurance liability movements

Key Signal: Indicates non-linear earnings profile

Segment performance

Segment: Insurance Business

• Revenue: ₹919.89 Cr
• Insight: Largest contributor but declining QoQ

Segment: Capital Business

• Revenue: ₹476.94 Cr
• Insight: Significant volatility (sharp QoQ fall)

Segment: Alternative Business

• Revenue: ₹265.76 Cr
• Insight: Stable growth driver

Segment: Asset Reconstruction

• Revenue: ₹214.28 Cr
• Insight: Improving recovery-led business

Segment insight

Summary:

Highly diversified financial services model:

• Insurance → steady but margin-sensitive
• Capital markets → volatile
• ARC → cyclical recovery play
• Alternatives → emerging stable vertical

Earning quality check

Drivers:

• Fair value gains/losses (₹3,751 Cr impact)
• Credit impairment adjustments
• Insurance liability changes

Interpretation:

• Core earnings visibility is low

balance sheet Analysis

• Total Assets: ₹43,741 Cr
• Total Equity: ₹5,943 Cr
• Borrowings (Debt securities + others): ~₹17,800 Cr+

Insight:

• Leverage remains high (typical NBFC structure)
• Increase in financial liabilities
• Decline in cash position (₹2,720 Cr vs ₹4,722 Cr YoY)

Cash flow analysis

Operating Cash Flow

• FY26: ₹897 Cr
• FY25: ₹3,383 Cr
• Sharp decline (~73%)

Investing Cash Flow

• ₹(963 Cr) → continued deployment

Financing Cash Flow

• ₹(1,936 Cr) → debt repayment + dividend

Net Cash Movement

• ₹(2,002 Cr) → significant cash reduction

key risks

• Credit risk in lending business
• Earnings volatility due to fair value accounting
• Insurance liability sensitivity
• High leverage
• Weak cash flow conversion

management strategy signals

Strategic Direction:

• Focus on capital-light businesses (AMC, alternatives)
• Reduce balance sheet risk
• Strengthen insurance vertical

Financial metrics table