Fedbank Financial Services Limited (FEDFINA)
Micro CapFinancial Services stocks · Micro cap · NSE
Fedbank Financial Services (Fedfina) is an MSME-focused NBFC, majority-owned by Federal Bank. It offers tailored loan solutions, primarily Gold Loans and Mortgage Loans (LAP & HL), across 17 states and UTs in India, targeting emerging India with easy access to credit.
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, while price trend supports entry. This looks more like momentum/speculation than a clean fundamental investment setup.
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 30 Jun 2026
Excellent · 85/100Rev +30% YoY · PAT +52% YoY · +9% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹670 Cr | +29.6% | +8.8% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹114 Cr | +52.0% | +12.9% |
| PAT margin | 17.0% | +250 bps | +61 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Q1 FY27 saw robust AUM growth of 34.7% YoY to ₹21,136 Cr, driven by Gold Loan AUM up 76.7% YoY. PAT surged 52.5% YoY to ₹114.4 Cr, with RoA at 2.6% and RoE at 15.4%. Asset quality improved, with GNPA at 1.6% and NNPA at 1.0%.
Fedfina delivered strong Q1 FY27 results, marked by significant YoY AUM and PAT growth, driven by its Gold Loan segment. Asset quality improved, and profitability ratios expanded. However, the notable QoQ decline in disbursements and CRAR warrants monitoring, despite the overall positive annual trends.
AUM by Product (Q1 FY27)
Latest issuer-disclosed distribution across 3 reported categories.
Gold Loan Segment
Gold Loan AUM grew 76.7% YoY to ₹11,191 Cr, with a net growth of ₹838 Cr in Q1 FY27. Gold Tonnage increased by 13.5% YoY.
MSME Focus
Company targets MSMEs with tailored loan solutions, exemplified by case studies for LAP and Gold Loan customers.
Branch Network Expansion
Extensive and expanding presence with 757 branches across 17 states and UTs, with 632 Gold Loan co-located MSME Hubs.
Branch Network
The company maintains 757 branches in Q1 FY27, a 13.3% YoY increase from 668 branches in Q1 FY26.
RBI Branch Expansion Liberalisation
Prior RBI approval is no longer required for expansion beyond 1,000 branches, enabling deeper reach into Tier-2/3 markets.
RBI Gold Loan Framework
New RBI guidelines strengthen underwriting, enhance customer protection, and liberalize branch expansion, promoting sustainable industry growth.
Large Addressable Market
India's MSME sector presents a significant credit gap of INR 92 Tn, and household credit to GDP ratio is projected to grow.
Strong Parentage
Majority-owned by Federal Bank, providing strong access to debt and equity, and AA+/Stable credit ratings from top agencies.
Disbursement Moderation
Disbursements decreased by 42.1% QoQ in Q1 FY27, despite a YoY increase.
Co-lending Off-take
System and process alignment with new RBI guidelines for co-lending may temporarily moderate co-lending off-take.
Capital Adequacy
CRAR declined to 20.7% in Q1 FY27 from 22.4% in Q4 FY26, indicating reduced capital buffer.
Asset Quality Management
While improving, maintaining low GNPA/NNPA levels is crucial, especially with rapid AUM growth and potential co-lending shifts.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
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.
Both YoY and QoQ comparisons are crucial for NBFCs. YoY highlights underlying growth and seasonal trends, while QoQ reveals sequential momentum, utilization, and immediate shifts in asset quality or borrowing costs.
AUM Growth
AUM grew 34.7% YoY and 4.9% QoQ to ₹21,136 Cr.
Disbursements Growth
Disbursals increased by 13.9% YoY but decreased by 42.1% QoQ to ₹6,760 Cr.
Net Interest Income (NII) Growth
Net Interest Income grew by 38.7% YoY and 6.6% QoQ to ₹371.9 Cr.
Spreads
Spreads were 8.6% in Q1 FY27, compared to 9.0% in Q4 FY26 and 7.7% in Q1 FY26.
Vision for Emerging India
Management's vision is 'Empowering Emerging India with Easy Access to Loans,' focusing on MSMEs with tailored solutions.
Digital Ecosystem
Building a modern, innovative, and future-ready digital ecosystem to provide 360-degree services, with strong digital adoption.
ESG Commitment
Committed to advancing women's financial inclusion through Gold Loan business, with 'Stree Sakthi Gold Loan Schemes' crossing ₹100 Cr portfolio.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| AUM Growth | ₹21,136 Cr (+34.7% YoY, +4.9% QoQ) | Sustained growth momentum, particularly in Gold Loan and Mortgage segments, and any impact from co-lending moderation. |
| Asset Quality (GNPA/NNPA) | GNPA 1.6%, NNPA 1.0% (improved QoQ and YoY) | Continued improvement or stability in asset quality metrics, especially given the rapid portfolio expansion. |
| Disbursements | ₹6,760 Cr (+13.9% YoY, -42.1% QoQ) | Rebound in sequential disbursement growth and sustained YoY momentum, indicating healthy business generation. |
| Capital Adequacy (CRAR) | 20.7% (-169bps QoQ) | Stabilization or improvement in CRAR to support future growth and absorb potential risks. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
80Strong Bullfull bull SMA stack · MACD +
Technical chart
FEDFINAdaily · 1Y · AUTO+25.0%Daily technical trend read
Bullish setupTrend is constructive — long-term uptrend intact. RSI 62.
- Price > SMA20 > SMA50 > SMA200 — full bullish stack.
- SMA20 roughly flat — short-term momentum stalled.
- RSI(14) at 62 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 9% off 52W high · 36% 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
U-Score 36 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 36 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
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 43.1%.
- Growth contributes 20/25 to the score.
- Valuation contributes 13/30 to the score.
Main drags
- Altman Z is 0.5, in distress territory.
- Balance sheet is weaker at 0/15; verify the latest quarterly trend.
- Cash flow is weaker at 0/10; 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
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 16th percentile of the scored universe and 29th percentile within Financial Services. Main check: balance sheet trust is weak at 22/100.
Mixed Trust Lite: Promoter holding is 60.7%. Key concern: Operating cash flow is negative at ₹-1664 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Financial Services: 29th pctile, median 62 · Micro: 10th pctile, median 73
72 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed 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 60.7%.
- ▸Promoter pledge is zero.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸4/4 latest quarters had positive YoY PAT growth.
Trust risks
- ▸Operating cash flow is negative at ₹-1664 Cr.
- ▸Debt/equity is 4.67.
- ▸Altman Z is 0.54.
- ▸Only 0 years of positive FCF.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 15.80
- P/B
- 2.07
- EV/EBITDA
- 352.41
- Market Cap
- 6060.00Cr
Profitability
- ROE
- 12.60%
- ROCE
- 9.06%
- ROA
- 2.27%
- 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
- 10.23
Shareholding
- Promoter Hold
- 60.67%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 73%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
Business-comparable names in Financial Services, ranked by similarity
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.