Fedbank Financial Services Limited Q3 FY26 Concall Decoded: – Gold went on a shopping spree, ST-LAP is still in therapy


1. Opening Hook

Gold prices are soaring, NBFCs are partying, and Fedfina finally invited Lakshmi Ji to Powai. After months of analysts asking “when gold?”, Q3 decided to answer loudly—with ₹7,853 crore disbursals and 54 new branches.

But before you pop the champagne, remember: one part of the house is still under renovation. Small-ticket LAP continues to cough politely in the corner while management insists, “Don’t worry, it’s planned.”

This concall wasn’t about dramatic surprises. It was about execution, discipline, and quietly fixing past sins. Gold sparkled, costs behaved (mostly), and credit costs stayed obedient—just under 1%, like a well-trained pet.

Read on, because behind the gold glitter lies a very deliberate clean-up story—and FY27 is where the real flex might begin.


2. At a Glance

  • AUM ₹17,500 Cr (+17% YoY) – Growth, minus business loans, suddenly looks respectable.
  • Gold AUM +52% YoY – When seasonality hits right, miracles happen.
  • Disbursals ₹8,606 Cr (+96% YoY) – Growth pedal pressed, brakes temporarily ignored.
  • Credit Cost 0.9% – Management promised. Management delivered.
  • GNPA 2.1% – Old ghosts still wandering, but no new ones invited.
  • Net Profit ₹87.9 Cr – Not explosive, but steady enough to sleep peacefully.

3. Management’s Key Commentary

“We want to move towards a fully secured lending portfolio.”
(Translation: Unsecured loans were

fun until they weren’t 😏)

“Gold AUM grew 52% YoY.”
(Translation: Yes, we finally caught the gold bull 🐂)

“We disbursed ₹7,853 crores in gold loans, highest ever.”
(Translation: Seasonality worked. Please don’t ask again.)

“ST-LAP challenges were anticipated.”
(Translation: We saw this mess coming, just took time to clean it 😬)

“Credit costs remain below 1%.”
(Translation: This is the KPI we tattooed on our forehead.)

“DA income reduced intentionally.”
(Translation: Optical yield tricks are overrated.)


4. Numbers Decoded

MetricQ3 FY26Decoded Take
Total AUM₹17,500 CrLooks modest until you remove business loans
Gold AUM₹7,905 CrNow officially the star performer
Mortgage AUM₹9,084 CrQuietly compounding, no drama
NII₹318.9 CrGrowth slower than AUM—timing issue
ROA2.5%Gradual climb, no heroics
ROE12.7%Directionally right, patience needed

Gold growth front-loaded costs; income will follow with a lag.


5. Analyst Questions

  • Why no operating leverage despite gold boom?
    Because incentives hit upfront, income trickles later.

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