Fedbank Financial Services Ltd. reported a 52.5% year-on-year rise in net profit for the first quarter, aided by strong growth in income. The company's net profit stood at Rs 114 crore in the quarter, compared with Rs 75 crore in the corresponding period last year.
The total income for the quarter increased 29.6% year-on-year to Rs 670 crore, up from Rs 517 crore a year earlier.
The robust earnings growth comes as the non-banking financial company (NBFC) continued to expand its lending business, with income growth outpacing the rise seen in the year-ago period.
Fedbank Financial Q1 Results - YoY
- Net profit up 52.5% at Rs 114 crore vs Rs 75 crore.
- Total income up 29.6% at Rs 670 crore vs Rs 517 crore.
Fedbank Financial Services operates as a dedicated MSME lender entirely focused on collateralised lending. Serving customers such as tailoring businesses, restaurants, and small fabrication units, the company relies on a "twin-engine" business model driven by gold and mortgage loans.
Gold loans form the bulk of their portfolio, accounting for 52.9% of the Assets Under Management (AUM), while mortgage loans which include medium and small ticket loans against property (LAP) as well as housing loans, make up the remainder.
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Fedbank Financial Services Ltd. Share Price Today
Fedbank Financial Services Ltd. Share Price Today
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Shares of Fedbank Financial Services Limited rose 12% after the company declared their strong Q4FY27 results. The scrip rose as much as 12.63% to Rs 174.40 apiece on Wednesday at 12 noon. It pared gains to trade 2.75% lower at Rs 159 apiece in almost two hours. This compares to a 0.03% rise in the NSE Nifty 50 Index.
It has risen 32.14% in the last 12 months and 5.47% year-to-date. Total traded volume so far in the day stood at 1.47 times its 30-day average. The relative strength index was at 54.60.
Out of seven analysts tracking the company, six maintain a 'buy' rating, one maintain a "hold", according to Bloomberg data. The average 12-month consensus price target of Rs 196.67 implies an upside of 17.2%
ALSO READ: Union Bank Of India Q1 Result: Profit Rises 30% To Rs 5,332 Crore, Gross NPA At 2.65%
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