Abans Financial Services Q4 FY25 results: net profit up 41.8% to ₹30 crore

How did Abans Financial Services perform in Q4 FY25?

Abans Financial Services reported consolidated Q4 FY25 revenue of ₹1,063 crore, up 321.4% from ₹252.32 crore in Q4 FY24. Total income was ₹1,064.37 crore, against ₹252.45 crore, while profit before tax rose 31.1% to ₹33.10 crore. Net profit increased 41.8% to ₹30 crore, and basic EPS rose to ₹5.96 from ₹4.22.

Against Q3 FY25, revenue fell 16.9% by ₹216.98 crore to ₹1,063 crore, and total expenses fell 17.2% to ₹1,031 crore. Profit before tax declined 6.1% to ₹33.10 crore, but net profit rose 11.4% to ₹30 crore and basic EPS increased to ₹5.96 from ₹5.36. No EBITDA or EBITDA margin was reported for the quarter.

On a standalone basis, Q4 FY25 revenue was ₹7.63 crore, up 520.3% from the year-ago quarter, while profit after tax was ₹3.75 crore against a loss of ₹0.17 crore. The consolidated figures therefore cover the company’s larger group operations, including the investment and lending businesses.

What changed in Abans Financial Services' costs and profit?

Total expenses rose 353.9% to ₹1,031 crore in Q4 FY25 from ₹227.20 crore in Q4 FY24, tracking the increase in revenue. Employee cost increased by ₹3.34 crore to ₹15.72 crore, finance costs by ₹3.66 crore to ₹15.30 crore, depreciation by ₹0.17 crore to ₹0.33 crore, and other expenses by ₹4.44 crore to ₹18.65 crore.

Other income rose by ₹1.09 crore to ₹1.21 crore, while profit before tax increased by ₹7.85 crore to ₹33.10 crore. Tax expense fell by ₹0.98 crore to ₹3.10 crore, and there was no exceptional item. Against Q3 FY25, lower finance costs of ₹1.37 crore and lower tax of ₹5.23 crore were accompanied by higher employee and other expenses.

The filing and earnings-call material did not give a complete explanation for the movement in every consolidated cost line. Management said on the call that principal investment and treasury has no fixed margin because it includes physical commodity trades and capital-market trades, and that the segment report provides the relevant margin indicator for the multifaceted business.

How did Abans Financial Services do in FY25 as a whole?

For FY25, consolidated revenue was ₹3,280.68 crore, up ₹1,902.34 crore or 138.0% from ₹1,378.34 crore in FY24. Total income rose 137.8% to ₹3,283.14 crore, while profit before tax increased 32.3% to ₹132.35 crore from ₹100.01 crore.

Net profit for FY25 was ₹108.51 crore, up ₹19.27 crore or 21.6% from ₹89.24 crore in FY24. Basic EPS increased 21.1% to ₹21.56 from ₹17.8. The year-on-year profit increase was lower than the rise in revenue, and the full-year profit margin was 3.3% against 6.5% in FY24.

What do the balance sheet and cash flow show?

At 31 March 2025, total assets were ₹3,059.83 crore, compared with ₹3,264 crore at 30 September 2024. Total equity rose to ₹1,164.59 crore from ₹1,087.92 crore, while borrowings fell to ₹834.09 crore from ₹1,023.47 crore and cash declined to ₹109.89 crore from ₹144.71 crore.

Trade receivables increased to ₹331.47 crore from ₹198.08 crore, while inventories rose to ₹20.05 crore from ₹13.30 crore. Trade payables fell to ₹47.09 crore from ₹256.28 crore. Compared with 30 September 2024, cash and cash equivalents were lower despite the increase in total equity and reduction in borrowings.

FY25 operating cash flow was negative ₹118.76 crore, compared with ₹44.58 crore in FY24. Investing cash flow was ₹210.38 crore against negative ₹447.26 crore, while financing cash flow was negative ₹205.25 crore against ₹402.68 crore. Capital expenditure was ₹2.34 crore, compared with ₹0.78 crore, and FY24 closing cash was ₹233.38 crore.

How has Abans Financial Services done over the last 8 quarters?

Revenue increased year on year in each of the last four quarters. It rose from ₹252.32 crore in Q4 FY24 to ₹296.11 crore in Q1 FY25, ₹641.26 crore in Q2 FY25 and a peak of ₹1,280.14 crore in Q3 FY25, before falling to ₹1,063 crore in Q4 FY25.

Net profit also increased year on year in each of the last four quarters. It moved from ₹21.16 crore in Q4 FY24 to ₹24.21 crore in Q1 FY25, ₹27.38 crore in Q2 FY25 and ₹26.92 crore in Q3 FY25, before reaching ₹30 crore in Q4 FY25.

Quarterly revenue bottomed at ₹251.29 crore in Q1 FY24 and peaked at ₹1,280.14 crore in Q3 FY25. Profit bottomed at ₹20.86 crore in Q1 FY24 and peaked at ₹30 crore in Q4 FY25. EBITDA margin was not reported in the quarterly trend data, so its peak, trough and current direction cannot be stated from the supplied figures.

Which businesses drove the quarter?

Principal investment and treasury reported Q4 FY25 revenue of ₹1,006.25 crore and EBIT of ₹3.38 crore, with an EBIT margin of 0.3%. Fee-based investment services reported revenue of ₹50.35 crore and EBIT of ₹29.92 crore, with a 59.4% margin; the repeated segment entries in the supplied data are not separate businesses.

Lending and credit solutions reported revenue of ₹7.51 crore and EBIT of ₹4.02 crore, with a 53.5% margin. Others and unallocable revenue was ₹0.26 crore, up 148.0% from ₹0.10 crore, while EBIT was ₹0.13 crore against a loss of ₹0.30 crore and the reported EBIT margin was 49.9%.

Year-ago revenue and EBIT were not reported for the three main segments, so their growth rates against Q4 FY24 cannot be calculated from the supplied data. Management said that fee-based investment services contributed 70% of overall EBIT in FY25, compared with 50% in FY24, and that its revenue grew from ₹100 crore to ₹165 crore.

What else did the company announce?

The board approved the audited standalone and consolidated financial results for the quarter and year ended 31 March 2025 on 29 May 2025, together with the audit report, statement of assets and liabilities, and FY25 cash-flow statement. The filing included a declaration of an unmodified opinion signed by the whole-time director and chief financial officer.

The company also filed an investor presentation with the exchange and disclosures on the appointment of internal auditors, secretarial auditors and a change in the list of senior management personnel. The same-day filings did not announce a dividend or a fund raise, and they did not provide details of any new appointment beyond the filing headlines.

What did Abans Financial Services' management say?

Management said fee-based investment services contributed 70% of overall EBIT in FY25, compared with 50% in FY24 and 25% in FY23. Total assets under management were approximately ₹3,200 crore at 31 March 2025, and the Global Arbitrage Fund contributed ₹831 crore, or over 25% of total AUM.

Management said the NBFC lending book was approximately ₹350 crore, with 75% exposure to non-group entities and capital adequacy of approximately 24%. It said treasury and principal-investment margins have no fixed spread, while subscription and performance-linked asset-management fees can create quarterly variation in reported income.

Management said it was redeeming the company’s onshore AIF as part of its plan to launch a new AIF in GIFT City. It said this affected continuity of AUM temporarily. The company expects a $100 million GIFT City fund in 12-18 months, against the current $30 million base, and expects asset-management fees to rise to 2-3 times the current ₹30 crore run-rate once the fund is fully deployed; no FY26 profit-and-loss guidance was provided.

CFO Nirbhay Vassa said the company had changed its name from Abans Holdings to Abans Financial Services because it was no longer only a standalone holding company and also manages funds onshore and in GIFT City. On the question of consolidated margins, he said: “If you try to calculate an EBITA margin or a PAT margin for the whole number, it is not how I would look at the business and hence I am trying to draw your attention to the segment part.”

How did Abans Financial Services shares react?

The results were announced after market hours on 29 May 2025. From the price when the filing appeared, the stock moved down 0.4% after five minutes, down 0.2% after 15 minutes and down 0.6% after 30 minutes.

On the reaction day, the stock closed 0.8% above its previous close. By the next day’s close, it was up 3.9% from its pre-results close, and the cumulative move over five days was 4.5%. Over one month, the move was 16.9%.

The Holding Company industry median was flat on the reaction day, up 0.6% by the next day and down 1.1% over five days. The stock therefore exceeded the industry median by 0.8 percentage points on the reaction day, 3.3 percentage points by the next day and 5.5 percentage points over five days. Earlier reaction-day moves were 1.4% on 10 February 2025, negative 1.4% on 11 November 2024, negative 1.7% on 7 August 2024 and 0.9% on 14 May 2024.

How did other Holding Company companies do?

Thirteen other Holding Company companies that had filed for the quarter were compared with Abans Financial Services. Their median revenue growth was 14.2%, while all 13 grew more slowly than Abans Financial Services; none grew faster. Nine of the 14 peers compared for profit reported higher profit.