Edelweiss Financial Services reports strong growth, debt reduction, strategic moves

Edelweiss Financial Services Limited reported a consolidated Profit After Tax (PAT) of INR 175 Cr for the quarter ended September 30, 2025, and INR 278 Cr for the half-year, marking a 25% year-over-year increase in consol PAT over six months. The company also successfully reduced its consolidated net debt by INR 2,250 Cr, a 17% year-over-year decrease, with corporate net debt declining by nearly 10% year-over-year to INR 6,610 Cr. Total customer reach expanded to 12 Mn, a 31% year-over-year increase, with customer assets reaching INR 2.3 Tn.

Underlying businesses showed steady growth, with PAT increasing by 15% year-over-year for the six months. Alternative Asset Management (AAM) AUM reached INR 65,460 Cr, up 14% year-over-year, and Mutual Fund Equity AUM grew by 30% year-over-year to INR 77,100 Cr. MSME and Housing Finance disbursements saw substantial growth, increasing by 2.5x and 2x year-over-year respectively in the quarter.

Strategic updates include the planned IPO of EAAA India Alternatives Ltd (EAAA) around April 2026, aiming to institutionalize the alternatives segment. Additionally, WestBridge Capital is acquiring a 15% stake in Edelweiss Mutual Fund for INR 450 Cr, valuing the business at 57x P/E on FY25 PAT of INR 53 Cr, with regulatory approvals currently in process.