Fedbank Financial Services Ltd. (FEDFINA) AI Stock Analysis

• Market Cap: ₹55.98B
• Dividend Yield: N/A
• Average Volume (3M): 108.62K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.78
• Revenue Growth: 14.44%
• EPS Growth: -10.84%
• Country: IN
• Employees: 4,262
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 2.20
• Shares Outstanding: 373,668,330
• 10 Day Avg. Volume: 106,807
• 30 Day Avg. Volume: 108,621
• PEG Ratio: -0.80
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 1.45
• P/FCF Ratio: -2.91
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ₹168.00 ▲(17.48% Upside)

Fedbank Financial Services Ltd. benefits from strong technical momentum and robust revenue growth. However, high leverage and cash flow challenges, along with a moderate valuation, slightly temper the overall outlook.

Fedbank Financial Services Ltd. Business Overview & Revenue Model

Company Description

Fedbank Financial Services Limited, a non-banking finance company (NBFC), provides financing services to individuals and businesses in India. It operates through three segments: Distribution, Retail Finance, and Wholesale Finance. The company offers housing, personal car, personal, home equity mortgage, gold, unsecured business, mortgage, and retail loans, as well as loans against property; construction finance to developers; and loans to other NBFCs. It also provides insurance products. The company was incorporated in 1995 and is based in Mumbai, India. Fedbank Financial Services Limited operates a subsidiary of The Federal Bank Limited.

How the Company Makes Money

FEDFINA makes money through interest income and fees associated with the various loan products it offers. The primary revenue stream comes from interest earned on loans against property, gold loans, and business loans, where the company charges borrowers a rate of interest over the loan tenure. Additionally, FEDFINA generates income from processing fees, late payment charges, and other ancillary services provided to its clients. The company's earnings are also bolstered through strategic partnerships with banks and other financial institutions, enabling it to expand its reach and product offerings. Effective risk management and a focus on maintaining a high-quality loan portfolio contribute to its profitability.

Fedbank Financial Services Ltd. Financial Statement Overview

Summary

Fedbank Financial Services Ltd. shows strong revenue growth and stable operational performance. However, high leverage and negative cash flow growth pose potential risks, requiring effective debt management and improved cash flow generation.

Income Statement

Fedbank Financial Services Ltd. has demonstrated strong revenue growth, with a notable increase from 2024 to 2025, indicating robust business expansion. The Gross Profit Margin remains healthy, suggesting efficient cost management. However, the Net Profit Margin has slightly decreased, reflecting potential challenges in converting revenue to profit. The EBIT and EBITDA margins are stable, indicating a solid operational performance.

Balance Sheet

The company shows a high level of debt with a Debt-to-Equity ratio above industry norms, which suggests significant leverage. However, the Return on Equity is solid, implying effective use of equity capital. The Equity Ratio indicates a stable financial structure, though the rising debt level could pose future risks.

Cash Flow

Fedbank Financial Services Ltd. has experienced negative free cash flow growth, indicating potential liquidity challenges. The Operating Cash Flow to Net Income ratio is less than ideal, which may impact the company's ability to generate cash from operations. However, the firm has managed its financing activities to address cash needs, as seen in positive financing cash flows.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.98B	20.10B	15.92B	11.89B	8.54B	6.82B
Gross Profit	6.75B	7.48B	15.25B	11.27B	4.52B	6.26B
EBITDA	5.10B	4.99B	3.75B	7.65B	1.85B	4.17B
Net Income	2.30B	2.25B	2.45B	1.80B	1.03B	616.84M
Balance Sheet
Total Assets	0.00	132.50B	111.38B	90.71B	65.56B	54.66B
Cash, Cash Equivalents and Short-Term Investments	0.00	8.35B	10.61B	946.20M	6.57B	6.81B
Total Debt	0.00	99.61B	83.40B	72.70B	51.54B	44.53B
Total Liabilities	-25.47B	107.02B	88.77B	77.15B	54.02B	46.32B
Stockholders Equity	25.47B	25.47B	22.61B	13.56B	11.54B	8.35B
Cash Flow
Free Cash Flow	0.00	-9.98B	-7.89B	4.44B	2.27B	2.12B
Operating Cash Flow	0.00	-9.80B	-7.76B	4.59B	2.54B	-3.71B
Investing Cash Flow	0.00	3.29B	-1.00B	-24.99B	-15.98B	-705.24M
Financing Cash Flow	0.00	11.87B	9.67B	20.67B	8.84B	8.26B

Fedbank Financial Services Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 143.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:FEDFINA, the sentiment is Neutral. The current price of 143 is below the 20-day moving average (MA) of 152.37, below the 50-day MA of 147.02, and above the 200-day MA of 112.80, indicating a neutral trend. The MACD of -1.43 indicates Positive momentum. The RSI at 42.03 is Neutral, neither overbought nor oversold. The STOCH value of 19.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:FEDFINA.

Fedbank Financial Services Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FEDFINA	―	₹55.98B	22.76	―	―	14.44%	-10.84%
TFCILTD	―	₹33.13B	30.40	―	0.85%	7.91%	16.20%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MASFIN	―	₹54.20B	16.72	―	0.46%	24.45%	10.58%
INDOSTAR	―	₹32.65B	5.08	―	―	-3.23%	528.67%

Fedbank Financial Services Ltd. Corporate Events

Fedbank Financial Services Expands Share Capital Through Employee Stock Options

Fedbank Financial Services Ltd. announced the allotment of 348,312 equity shares following the exercise of vested stock options by its employees under the company’s 2018 Employee Stock Option Scheme. This allotment increases the company’s paid-up share capital and the newly allotted shares will rank equally with existing equity shares, with formalities for listing these shares currently underway.

Fedbank Financial Services Sells Non-Performing Loans to ISARC

Fedbank Financial Services Limited has announced the sale of a significant portion of its non-performing assets, specifically small-ticket LAP and affordable home loans, to India SME Asset Reconstruction Company Limited (ISARC). The transaction, amounting to Rs. 32.57 crore, represents approximately 41% of the principal outstanding value of the assets sold. This strategic move is expected to improve the company’s financial health by reducing its gross non-performing assets and is likely to enhance its operational efficiency and market positioning.

Fedbank Financial Services Hosts Analyst and Investor Meeting

Fedbank Financial Services Ltd. announced that it held an analyst and investor meeting on September 26, 2025, with Bajaj AMC through a virtual conference. The company assured that no unpublished price-sensitive information was disclosed during this meeting, aligning with SEBI regulations. This disclosure is part of the company’s commitment to transparency and regulatory compliance, potentially reinforcing trust among stakeholders.

Fedbank Financial Services Expands Share Capital Through Employee Stock Options

Fedbank Financial Services Limited has announced the allotment of 67,400 equity shares following the exercise of stock options by its employees under the company’s 2018 Employee Stock Option Scheme. This move increases the company’s paid-up share capital, with the newly allotted shares ranking equally with existing shares, indicating a positive step in employee engagement and capital structure enhancement.

Fedbank Financial Services Corrects Secretarial Auditor Appointment Term

Fedbank Financial Services Ltd. announced a correction to a previous communication regarding the appointment of DKJ & Associates as Secretarial Auditors. The initial term for the appointment was mistakenly reported as three years, but it has been corrected to five years, starting from April 1, 2025, to March 31, 2030, pending shareholder approval at the upcoming Annual General Meeting. This correction ensures compliance with regulatory requirements and maintains transparency with stakeholders.

Fedbank Financial Services Increases Share Capital with Employee Stock Options

Fedbank Financial Services Ltd. announced the allotment of 50,687 equity shares following the exercise of stock options by employees under the company’s Employee Stock Option Scheme, 2018. This move increases the company’s paid-up share capital and reflects its commitment to employee participation in ownership, potentially enhancing employee motivation and aligning interests with shareholders.

Fedbank Financial Services Ltd. Hosts Analyst and Investor Meeting

Fedbank Financial Services Ltd. announced that it held an analyst and investor meeting on August 4, 2025, in Mumbai. The company clarified that no unpublished price-sensitive information was disclosed during this meeting, aligning with regulatory compliance and ensuring transparency with stakeholders.

Fedbank Financial Services Conducts Analyst and Investor Meeting

Fedbank Financial Services Limited announced that its officials held a meeting with analysts and investors on August 4, 2025, in Mumbai. The meeting was conducted in compliance with SEBI regulations, and no unpublished price-sensitive information was shared, ensuring transparency and adherence to regulatory standards.