Edelweiss shares soar 10% as Q3 net profit zooms 112% YoY; Carlyle acquires stake in subsidiary for Rs 2,100 cr

Shares of Edelweiss Financial Services rallied as much as 10.5% to their day’s high of Rs 123 on the BSE on Tuesday after the company reported a net profit of Rs 264 crore, a staggering 112% increase in the December quarter of FY26.

The company’s Alternative Asset Management business reported strong growth, with FPAUM rising 33% YoY to Rs 41,920 crore and fund raises of Rs 2,394 crore during the quarter. In the Mutual Fund segment, equity AUM increased 33% YoY to Rs 83,000 crore, while the SIP book crossed the Rs 500 crore mark, registering a 55% YoY growth.

The Asset Reconstruction business saw recoveries of Rs 842 crore during the quarter, with the share of retail in capital employed rising to 25% from 15% a year ago.

In lending operations, MSME loan disbursements stood at Rs 298 crore, up 5.7x YoY, while the wholesale book declined 34% YoY to Rs 2,400 crore. The Housing Finance business recorded disbursements of Rs 559 crore during the quarter, reflecting a 36% YoY increase, and AUM grew 21% YoY to Rs 4,804 crore.

Management commentary

Rashesh Shah, Chairman, Edelweiss Financial Services Limited, said: “In the midst of global headwinds, India’s growth remained steady this quarter, driven by tax cuts, ongoing reforms, and an accommodative monetary backdrop. With easing inflation and resilient urban-rural consumption, India is poised to confidently enter its next phase of growth.

Carlyle invests Rs 2,100 crore in subsidiary

Apart from its Q3 update, the company also announced that Carlyle will acquire a strategic majority stake in Nido Home Finance Limited (Nido), a wholly owned subsidiary of Edelweiss. Under the transaction, investment funds affiliated with Carlyle Asia Partners will invest Rs 2,100 crore, which includes the acquisition of a 45% stake in Nido from Edelweiss through a secondary purchase, along with a primary equity infusion of Rs 1,500 crore into Nido.

“The transaction seeks to create a win-win opportunity for all stakeholders by bringing additional capital and operational expertise to better serve the affordable housing segment, predominantly in the rural and semi-urban markets in India, a key priority for the Indian government,” the company said in a press release statement.

“Housing finance is an important pillar of India’s growth, underpinned by structural demand, policy support, and a deepening formal credit ecosystem. For Edelweiss, the partnership seeks to advance its objective of creating and unlocking value in its businesses, while reinforcing Nido’s growth momentum through the infusion of fresh growth capital.”

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