Edelweiss Financial Services Ltd

IRDAI action on ELI

• IRDAI order dated Aug 20, 2026 warns ELI for non-compliance with Expenses of Management Regulations 2024.
• Directive imposes six-month moratorium on opening offices.
• Management states no material impact on ELI, Edelweiss group finances, or operations.

• Transcript available on Edelweiss website for Q1 FY27 earnings call held August 6, 2026.

Business Overview

• EAAA Alternatives is Edelweiss's alt-asset manager focused on yield and income strategies.
• Platform built over 15+ years with 8 core yield/income strategies.
• Serves 5,700+ clients across 34 countries with tech-driven governance.
• Flagship funds in 3rd–4th vintages; patient capital focus.

Operational Highlights

• Q1FY27 FPAUM reached $5.14bn, indicating momentum.
• Q1FY27 Total Income $36m; up 59% YoY.
• Q1FY27 PAT $9m; up 45% YoY.
• ROE improved to 29% in Q1FY27 from 22%.
• Notable fund milestones: EIYP Infra Yield ~$5.3bn; EISAF II ~$4.5bn.
• ESOF III nearing full exit; 100% capital returned as of July 2026.
• AUM trajectory: FPAUM rose from ~$3.21bn FY24 to ~$4.73bn FY26.

Financial Performance

• FY24–FY26 FPAUM CAGR ~21%.
• Yield & Income AUM targeted at $70bn in 2026; $140bn by 2030.
• Yield/income share to exceed 50% of Indian Alts by 2030.

Strategic Outlook

• India's alternatives market underpenetrated; AUM expected to cross $275bn by 2030.
• Macro drivers: policy-led asset monetization and shifting bank credit dynamics.
• Flywheel momentum: completed fund cycles drive further value.
• Strategy: scale diversified yield and income platform with institutional client base.

Capital Structure & Liquidity

• Flagship funds raised approximately $6.6bn to date.

Risks & Mitigation

• Macro risks include economic/policy shifts and rate volatility.
• Mitigated by diversified yield/income strategies and strong governance.
• NMP 2.0 infrastructure monetization supports long-term growth.

Governance & Leadership

• Long-tenured management with 80+ investment professionals.
• 60+ asset operating and management staff; 100+ enterprise team.
• Independent risk oversight and ESG standards; central control room.
• Operations across 17+ states; 5,700+ clients across 34 countries.

Business overview

• EAAA Alternatives is Edelweiss's 15+ year-old alternatives asset manager.
• FPAUM around ₹48,600 cr; 5,700+ clients across 34 countries.

Market outlook & strategy

• Indian alts market underpenetrated; AUM to ~$166bn by 2026 and ~$275bn by 2030.
• Yield/income AUM to ~$70bn by 2026; 18% CAGR to ~$140bn by 2030.
• Yield & Income to command over 50% of Indian alts by 2030.

Operational & reach

• Operations in 17 states; diversified client base across 34 countries.
• 8 core yield/income strategies; technology-driven operations; strong governance.

Financial performance

• Q1FY27 Total Income ₹336 cr, up 59% YoY from ₹212 cr.
• Q1FY27 PAT ₹81 cr, up 45% YoY from ₹56 cr.
• Q1FY27 FPAUM ₹48,623 cr; YoY 27%.
• FY24–FY26 FPAUM: 30,398; 33,833; 44,710 cr.

Profitability & efficiency metrics

• FY24–FY26 PAT: ₹175 cr; ₹230 cr; ₹265 cr.
• ROE: 27% (FY24), 26% (FY25), 29% (FY26); Q1FY27 RoE ~29%.

Capital structure & liquidity

• Fund raises completed: ₹62,230 cr across lifecycle.
• EIYP Infra Yield completed; EISAF II realizations ₹42,170 cr; ESOF III nearing exit; 100% capital returned by July 2026.

Fund performance & exits

• Flagship funds now in 3rd or 4th vintages.

Governance & leadership

• Independent risk team; independent investment committees; global ESG standards.
• Technology-driven operations; centralized monitoring; 80+ investment professionals; 60+ asset mgmt; 100+ enterprise staff.

Business Overview

• Diversified with seven businesses across asset management, NBFC, housing, and insurance.
• FY27 focus on PAT growth in asset management and insurance breakeven.
• EAAA on track for listing in Q3 FY27.
• Carlyle investment in Nido progressing toward September 2026 closure.
• Insurance breakeven on track; credit businesses scaled with disbursal ramp.
• Scale-up in asset management profits driven by Fee Paying AUM and Equity AUM growth.

Operational Highlights

• Consolidated PAT (Post MI) rose 83% YoY to $13 Mn.
• Fee Paying AUM grew 27% YoY to $5,140 Mn.
• Equity AUM at $10,148 Mn, up 32% YoY.
• Mutual Fund AUM at $18,626 Mn; net equity inflows $677 Mn.
• Total customer reach 14 Mn, up 30% YoY.
• BVPS $0.6, up 19% YoY.
• On track to FY27 priorities including AM PAT growth and insurance breakeven.
• SIP book up 63% YoY; Retail folios up 49% YoY.
• SIF AUM crossed $600 Mn; launched Altiva Equity Ex-Top 100 SIF.
• Recoveries $32 Mn; retail assets acquired $32 Mn.

Financial Performance

• GI GWP up 58% YoY; motor 52% of GWP.
• GI GDPI up 62% YoY; policies issued 241,236, up 68%.
• Life Insurance total income $80 Mn; PAT $(3.2) Mn.
• General Insurance total income $30 Mn; PAT $(0.4) Mn.
• NBFC net revenue $8 Mn; GNPA 2.19%; NNPA 1.23%.
• Housing Finance PAT $(0.5) Mn; AUM $518 Mn; GNPA 2.91%.
• Mutual Fund revenue $12 Mn; PAT $4 Mn.
• Asset Reconstruction PAT $8 Mn; Net Revenue $16 Mn; RoE 29%.
• Consolidated PAT (Pre MI) $14 Mn; Post MI $13 Mn.
• Life Insurance Embedded Value $244 Mn; AUM $1,156 Mn; up 13% YoY.

Capital Structure & Liquidity

• Opening available liquidity $645 Mn; closing $603 Mn.
• Total inflows $1,258 Mn; repayments $803 Mn; disbursements $497 Mn.
• Corporate net debt down 10% YoY to $605 Mn; net debt across businesses $1,180 Mn.
• GI solvency 164%; Life solvency 189%; NBFC 27% capital adequacy; Housing Finance 30%; AR 36%.

Strategic Priorities & Outlook

• EAAA listing on track; plan for Q3 FY27.
• Carlyle investment in Nido progressing; closure expected Sept 2026.
• Asset management PAT to scale with Fee Paying AUM and Equity AUM growth.
• Insurance businesses on track to breakeven; credit ramp continuing.
• Disbursals ramp in MSME and Housing Finance.

Governance & Leadership

• Board comprises seven members with four independent directors.
• Independent directors: Dr. Ashima Goyal; Mr. Shiva Kumar; Balagopal Chandrasekhar; Rajiv Jalota.

Risks & Mitigation

• Forward-looking statements disclaimer included; actual results may differ.

Business overview

• Diversified financial services with seven businesses including AM, mutual funds, NBFC, housing finance, GI, LI, and AR.
• On track with FY27 priorities: EAAA listing, Carlyle-Nido progress, insurance breakeven, AM PAT growth, credit scale-up.

Operational highlights

• Consolidated PAT (Post MI) up 83% YoY to INR 122 Cr.
• Fee Paying AUM up 27% YoY to INR 48,623 Cr; equity AUM INR 96,000 Cr.
• Mutual Fund AUM crossed INR 1 Trn in Jul 2026; equity inflows INR 6,400 Cr.
• Total customer reach 14 million; customer assets INR 2.8 Trn, up 23%.
• Corporate net debt down 10% YoY to INR 5,725 Cr; net debt across businesses INR 11,160 Cr.

Financial performance

• RoE in Asset Management 29% annualized, up 700 bps YoY.
• SIP book up 63% YoY; 2nd SIF launched; EIYP exit completed.
• NBFC: disbursals INR 353 Cr; GNPA 2.19%; NNPA 1.23%; wholesale book reduced to INR 600 Cr.
• Housing Finance AUM INR 4,900 Cr; disbursals INR 218 Cr; GNPA 2.91%; NNPA 2.37%.
• General Insurance GWP INR 415 Cr; PAT negative.
• Life Insurance PAT negative; Life AUM INR 10,933 Cr.

Liquidity & capital

• Opening liquidity INR 6,100 Cr; closing INR 5,700 Cr.
• Inflows INR 11,900 Cr; outflows INR 12,300 Cr; net liquidity impact modest.

Strategic priorities & outlook

• EAAA listing on track for Q3 FY27.
• Carlyle investment in Nido progressing; closure expected Sep 2026.
• Asset management PAT growth driven by Fee Paying AUM and Equity AUM expansion.
• Insurance on track to breakeven; credit businesses to scale with disbursals ramp.
• Calibrated scale-up in Credit businesses; ramped disbursals.

Risks & governance

• Insurance segments remain loss-making but on track to breakeven.
• NBFC credit quality improving; GNPA 2.19%, NNPA 1.23%; credit costs monitored.
• Board comprises 7 members, 4 independent directors; independent members include Dr. Ashima Goyal, etc.

Financial highlights

• Consolidated revenue from operations at INR 2,419 Cr for the quarter ended June 30, 2026.
• Consolidated PAT (Post MI) rose 83% YoY to INR 122 Cr.
• Consolidated PAT (Pre MI) at INR 134 Cr, up 31% YoY.
• Board approves public issue of NCDs up to ₹1,000 Cr; initial ₹300 Cr raised.
• Total income (1+2) at INR 2,418.81 Cr.

Key segment metrics

• Alternative Asset Management Fee Paying AUM up 27% YoY to INR 48,623 Cr; PAT ₹81 Cr.
• Mutual Fund Equity AUM up 32% YoY to INR 96,000 Cr; SIP book ₹696 Cr.
• Asset Reconstruction recovered ₹304 Cr; retail assets acquisitions ₹300 Cr.
• MSME loans disbursed ₹353 Cr; wholesale book down to ₹600 Cr; GNPA 2.19%; NNPA 1.23%.
• Housing Finance AUM ₹4,900 Cr; disbursement ₹218 Cr; GNPA 2.91%; NNPA 2.37%.
• General Insurance GWP ₹415 Cr; GDPI up 62% YoY; 2,41,236 policies issued.
• Life Insurance gross premium ₹287 Cr; AUM ₹10,933 Cr; Embedded Value ₹2,306 Cr; Par/Non‑Par 77% of NB.
• Customer base >14 million; customer assets ₹2.8 Trn.
• Annualized ROE rose to 29%, up 700 bps YoY.

Balance sheet & liquidity

• Net worth ₹5,959 Cr; Consolidated net debt ₹11,160 Cr.
• Corporate net debt ₹5,725 Cr; Liquidity ₹6,100 Cr.
• Capital adequacy above 27%.
• NCDs secured with asset cover of ≥1x; asset cover maintained as per offer documents.

Outlook & guidance

• EAAA listing on track for completion in Q3 FY27.
• Strategic Carlyle investment in Nido Home Finance expected to close in September 2026.
• Breakeven in Insurance businesses on track.
• Credit businesses undergoing calibrated scale-up with steady disbursals.

Business model & segments

• Diversified financial services company with seven independent businesses.
• Segments include Alternative Asset Mgmt, Mutual Fund, Asset Reconstruction, NBFC, Housing Finance, General & Life Insurance.
• Strategic actions include EAAA listing and Carlyle investment to drive value.

Meeting Details

• Scheduled for August 6, 2026 at 3:30 p.m. IST.
• Group virtual earnings call.
• Organised by Edelweiss Financial Services Limited.

Participants

• Key company participant: Company Secretary.

Purpose

• Discuss Q1 FY2026-27 results for quarter ended June 30, 2026.

Meeting Details

• Board meeting scheduled for Thursday, August 6, 2026; time and venue not disclosed.

Key Agenda Items

• Unaudited standalone and consolidated financial results for first quarter ended June 30, 2026.
• Proposal for issue of Non-convertible Debentures.

Other Notes

• No other material notes disclosed.