Edelweiss Financial Services reports robust growth, debt reduction, and strategic focus

Edelweiss Financial Services Limited (EFSL) announced robust growth and strategic debt reduction in its 30th Annual General Meeting presentation. For the year ended March 25, the company reported a consolidated PAT of INR 536 Cr and a net worth of INR 5,918 Cr. Total customer reach increased by 36% year-on-year to 10 Mn, driven by strong growth in Mutual Fund folios (64% YoY) and General Insurance customers (38% YoY).

A key highlight was the reduction in consolidated net debt by INR 4,170 Cr, a 27% decrease year-on-year, bringing the total to INR 11,170 Cr. Over the past six years, wholesale assets in NBFC have been reduced by 86%, and consolidated net debt by approximately INR 29,000 Cr. The company also executed a one-time strategic markdown of ~INR 1,140 Cr in its ECLF Security Receipts (SR) book, aiming to strengthen its balance sheet for sustainable SME-focused growth.

Underlying businesses demonstrated robust PAT growth, with Alternative Asset Management increasing by 31% YoY to INR 230 Cr and Mutual Fund by 40% YoY to INR 53 Cr. Insurance businesses showed a reduction in losses, with General Insurance losses decreasing by 61% YoY to (INR 48) Cr and Life Insurance by 19% YoY to (INR 127) Cr, with both segments targeted for breakeven by FY27. EFSL anticipates delivering a 15-20% CAGR in Intrinsic Value over the next five years.