Block Deal Alert: NBFC Share Surges 4% After 6.87% Stake Changes Hands 

Synopsis: Shares of this NBFC stock rose over 4% after a major block deal where 2.57 crore shares (6.87% equity) changed hands. The NBFC has delivered strong gains over the past year despite recent consolidation.

The shares of this company provide Gold Loans, Home Loans, Loan Against Property (LAP), and Business Loan Services are in the spotlight after it rose by 4 percent in today’s session following two block deals that took place.

With a market capitalisation of Rs. 5,722 cr, the shares of Fedbank Financial Services Ltd were trading at Rs. 152.90 per share, increasing over 4% in today’s market session, making a high of Rs. 159, up from its previous close of Rs. 152.20 per share. The stock has risen 79% over the past year, remained largely flat year-to-date, gained 13% in the last six months, and is up 10% over the past month. 

Block Deal 

A large-scale block deal activity was recorded in Fedbank Financial Services Ltd, indicating significant movement of institutional or large investor interest in the stock. In recent market sessions, a total of 2.57 crore shares were traded.

This transaction accounted for approximately 6.87% of the company’s total equity, highlighting the scale of the deal. The shares were exchanged through two separate block deals, reflecting structured participation from large buyers and sellers. The transaction occurred at a price of Rs. 150 per share within the block deal window. Valued at an estimated Rs. 385 crore. 

About the company 

Fedbank Financial Services Ltd is a non-banking financial company (NBFC) in India, promoted by the Federal Bank group. It primarily focuses on retail lending, including gold loans, mortgage loans, and small business loans, catering to underserved and semi-urban markets. The company leverages its parent bank’s network for sourcing and distribution, while gradually expanding its secured lending portfolio to drive growth and improve asset quality. 

It reported strong operational performance in Q4 FY26, driven by robust growth across key business segments. The company’s Assets Under Management (AUM) rose 27.5% YoY to Rs. 20,153 crore, or 40.8% YoY excluding business loans, supported by strong disbursement growth of 109.1% YoY to Rs. 11,665 crore. 

Gold loans remained a major contributor, with AUM growing 76% YoY to Rs. 10,352 crore, accounting for 51.4% of total AUM, while mortgage AUM grew 16.1% YoY to Rs. 9,362 crore. The company also achieved record gold loan AUM growth of Rs. 2,447 crore in the quarter.

On the branch expansion front, Fedbank continued to scale its presence, commissioning 34 new branches in the quarter and reaching a total of 148 new branches for the year. It also expanded its co-located branch network to 70 locations.

Profitability showed strong improvement across all metrics. Net Interest Income (NII) grew 23.1% YoY to Rs. 348.8 crore in Q4 and 14.8% YoY to Rs. 1,229.7 crore for FY26. Operating profit increased 24% YoY to Rs. 162.8 crore in Q4 and 10.8% YoY to Rs. 576.3 crore for FY26. Profit After Tax (PAT) rose sharply by 40.3% YoY to Rs. 100.5 crore in Q4 and 52.6% YoY to Rs. 343.6 crore for FY26. The company also reduced reliance on treasury income, with net gain on DA down 88.8% YoY to Rs. 7.4 crore.

Asset quality remained stable, with Gross Stage III at 1.9% and Net Stage III at 1.3% for the quarter. Credit cost was contained at 0.7% for Q4 and 0.8% for the full financial year, indicating controlled risk and stable provisioning.

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