FEDFINA
Micro CapFedbank Financial Services Limited
Financial Services
Fedbank Financial Services (Fedfina) is an MSME-focused NBFC, majority-owned by Federal Bank. It offers collateralized loans, primarily Gold Loans and Mortgage Loans (Small & Medium Ticket LAP, HL), across 17 states and UTs. Rated AA+/Stable by CARE, CRISIL, ICRA, and India Ratings.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 75/100Rev +15% YoY · PAT +40% YoY · +11% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹616 Cr | +14.9% | +11.0% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹101 Cr | +40.3% | +14.8% |
| PAT margin | 16.4% | +297 bps | +54 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4 FY26 PAT grew 40.3% YoY to ₹100.5 Cr, with AUM up 27.5% YoY to ₹20,153 Cr. Disbursements surged 109.1% YoY to ₹11,665 Cr. Gold Loan AUM grew 76.0% YoY, now 51.4% of total AUM. GNPA improved to 1.9%, while NNPA slightly increased to 1.3%.
FEDFINA delivered robust Q4 FY26 results, driven by strong AUM and disbursement growth, particularly in Gold Loans. Profitability metrics improved significantly, and asset quality remains controlled. The focus on secured lending and branch expansion positions it well for continued growth, though NNPA saw a slight QoQ increase.
AUM by Product
Latest issuer-disclosed distribution across 3 reported categories.
Gold Loan Business
Gold Loan AUM grew 76.0% YoY to ₹10,352 Cr, contributing 51.4% to total AUM.
Disbursement Momentum
Disbursals grew 109.1% YoY to ₹11,665 Cr in Q4 FY26, indicating strong business generation.
Secured Lending Focus
The company maintains a fully secured lending portfolio, with 98.9% of AUM collateralized.
Branch Expansion
Commissioned 34 new branches this quarter, bringing the total to 148 new branches this year, reaching 757 branches.
Branch Network Expansion
The company commissioned 34 new branches in Q4 FY26, totaling 148 new branches for FY26, reaching 757 branches across 17 States and UTs.
Co-located Branches
The total number of co-located branches reached 70 in Q4 FY26.
MSME Credit Addressable Market
An estimated INR 92 Tn credit gap exists in the formal sector for MSMEs, indicating a long runway for growth.
Household Gold Potential
93% of household gold is unpledged, representing a significant addressable market for gold loans.
Retail Credit Growth
Systemic retail credit growth is expected to continue, supporting demand for the company's loan products.
Net Stage III Increase
Net Stage III slightly increased to 1.3% in Q4 FY26 from 1.2% in Q4 FY25, despite GNPA improvement.
Business Loan Portfolio Quality
Business Loan Gross Stage III was 20.3% and Net Stage III was 1.0% in Q4 FY26, though it's a small part of AUF.
Competition
Forward-looking statements are subject to risks and uncertainties, including competition (both domestic and international).
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The document provides both YoY and QoQ comparisons for Q4 FY26, which are crucial for assessing both long-term growth trends (YoY) and recent operational momentum, asset quality shifts, and efficiency improvements (QoQ) in the financial services sector.
AUM Growth
AUM increased 27.5% YoY to ₹20,153 Cr (40.8% YoY Ex. Business Loans).
Disbursements
Disbursals reached ₹11,665 Cr, a growth of 109.1% YoY.
Spreads
Spreads for Q4 FY26 were 9.0%, stable QoQ and up 80 bps YoY.
Net Interest Income (Core) / Average total assets
Net Interest Income (Core) / Average total assets was 8.8% in Q4 FY26, down 40 bps QoQ but up 20 bps YoY.
Strengthening Return Profile
Management claims consistent gains in PAT, ROA, and ROE, with Exit PAT >₹100 Cr, Exit RoE 14.0%, and Exit RoA 2.6%.
Stabilized Credit Cost
Management aims to position credit costs on a sustainable, steady trajectory, with FY26 Credit Cost at 0.8% of ATA.
Core Income Focus
The company has reduced reliance on DA income, with Net gain on DA down 88.8% YoY for FY26.
Enhanced Footprint
Management highlights steady branch expansion across India, reaching 750+ branches across 17 States & UTs.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| AUM Growth (Ex-Business Loans) | 40.8% YoY (FY26) | Sustained growth above 30% YoY, particularly in Gold and Mortgage segments. |
| Net Stage III | 1.3% (Q4 FY26) | Stability or reduction, especially in the Mortgage and residual Business Loan portfolios. |
| Spreads | 9.0% (Q4 FY26) | Maintenance of spreads amidst potential increases in borrowing costs or competitive pressures. |
| Branch Expansion & Utilization | 757 branches, 70 co-located | Continued efficient expansion and effective ramp-up of business from new and co-located branches. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
59NeutralSMA20 +8.3% / mo
Technical chart
FEDFINAweekly · 6M+9.3%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 54.
- RSI(14) at 54 — falling, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 13% off 52W high · 31% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 48.2%.
- Growth contributes 19/25 to the score.
- Valuation contributes 15/30 to the score.
Main drags
- Altman Z is 0.5, in distress territory.
- Cash flow is weaker at 0/10; verify the latest quarterly trend.
- Quality is weaker at 1/20; verify the latest quarterly trend.
NBFC valuation: P/B, ROA, borrowing cost, and asset quality
Lenders can look optically cheap before credit losses emerge, so valuation is tied to book quality.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Weak Trust: Claim history is still being built. It ranks around the 13th percentile of the scored universe and 25th percentile within Financial Services. Main check: balance sheet trust is weak at 22/100.
Mixed Trust Lite: Promoter holding is 60.8%. Key concern: Operating cash flow is negative at ₹-1664 Cr.
Management or financial behaviour needs caution. Demand stronger valuation compensation.
overall median 67 · Financial Services: 25th pctile, median 62 · Micro: 9th pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Weak Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 60.8%.
- ▸Promoter pledge is zero.
- ▸8/8 recent quarters had positive YoY revenue growth.
- ▸7/8 recent quarters had positive YoY PAT growth.
Trust risks
- ▸Operating cash flow is negative at ₹-1664 Cr.
- ▸Debt/equity is 4.67.
- ▸Altman Z is 0.52.
- ▸Only 0 years of positive FCF.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 17.70
- P/B
- 2.07
- EV/EBITDA
- 365.61
- Market Cap
- 6068.00Cr
Profitability
- ROE
- 12.60%
- ROCE
- 9.06%
- ROA
- 2.04%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 26.00%
- EPS 5Y
- 41.00%
- Revenue 3Y
- 24.00%
- EPS 3Y
- 22.00%
Balance Sheet
- Debt/Equity
- 4.67
- Interest Coverage
- —
- Altman Z
- 0.54
- Book Value
- 78.20
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 0/5
- OCF
- -1664.00 Cr
- EPS TTM
- 9.18
Shareholding
- Promoter Hold
- 60.79%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 79%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.