Edelweiss shares rise 10% as third-quarter net profit rises 112% year-over-year; Carlyle acquires stake in subsidiary for Rs 2,100 cr

Shares of Edelweiss Financial Services rose as much as 10.5% to the 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% rise 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 fundraising of Rs 2,394 crore during the quarter. In the Mutual Fund segment, share capital rose 33% YoY to Rs 83,000 crore, while the SIP book crossed the Rs 500 crore mark and registered 55% YoY growth.

The Asset Reconstruction business saw a recovery of Rs 842 crore during the quarter, with retail’s share of 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 portfolio fell 34% YoY to Rs 2,400 crore. The Housing Finance business recorded disbursements of Rs 559 crore during the quarter, reflecting an increase of 36% year-on-year, and assets under management grew 21% year-on-year to Rs 4,804 crore.

Management commentary

Rashesh Shah, Chairman, Edelweiss Financial Services Limited, said: “Amid global headwinds, India’s growth remained stable this quarter, driven by tax cuts, continued reforms and an accommodative monetary environment. With declining inflation and resilient urban and rural consumption, India is ready to confidently enter its next phase of growth.

Carlyle invests Rs 2,100 crore in subsidiary

In addition to the 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, including acquisition of 45% stake in Nido from Edelweiss through a secondary purchase, along with a primary equity infusion of Rs 1,500 crore in Nido.

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

“Housing finance is a key pillar of Indian growth, underpinned by structural demand, policy support and a deepening formal credit ecosystem. For Edelweiss, the partnership seeks to further its objective of creating and unlocking value in its businesses, while strengthening Nido’s growth momentum through the infusion of new growth capital.”

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