Abans Financial Services Limited — Q4 FY25 earnings call

Call held 30 May 2025

Management summary

Abans Financial Services reported strong Q4 and FY25 results, with EBITA growing 27% and 25% respectively, and Net Profit increasing 43% and 22.5% YoY. The company's strategic focus on fee-based investment services led to a 70% EBIT contribution from this segment in FY25. Total AUM reached approximately ₹3200 crores, supported by the Global Arbitrage Fund, and the NBFC maintained a robust capital adequacy of 24%.

Highlights

  • Q4 FY25 EBITA increased 27% YoY to ₹47 crores, with improving margins.

  • Q4 FY25 Net Profit grew 43% YoY to ₹30 crores.

  • FY25 EBITA rose 25% YoY to ₹188 crores, and Net Profit increased 22.5% YoY to ₹109 crores.

  • Fee-based investment services significantly boosted EBIT contribution to 70% in FY25, up from 50% in FY24.

  • NBFC business maintained a strong capital adequacy ratio of approximately 24%.

Key financials

3 periods

Headline

  • Total AUM
    ₹3,200 Cr
  • Global Arbitrage Fund AUM
    ₹831 Cr
  • NBFC Lending Books
    ₹350 Cr
  • NBFC Capital Adequacy Ratio
    24%

Q4

  • EBITA
    ₹47 Cr
    YoY +27%
  • Net Profit
    ₹30 Cr
    YoY +43%

FY25

  • EBITA
    ₹188 Cr
    YoY +25%
  • Net Profit
    ₹109 Cr
    YoY +22.5%

What they filed

Q1 FY27: revenue up 96.0%, net profit up 100.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue641 1,280 1,063 1,894 6,832 +966%6,495 +407%8,708 +719%3,713 +96%
EBITDA46 52 48 51 48 +4%44 −15%16 −67%100 +96%
Net profit27 27 30 33 42 +56%34 +26%-4 −113%66 +100%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Fee-based investment services
    70% FY25 EBIT Contribution50% FY24 EBIT Contribution25% FY23 EBIT Contribution₹165 Cr FY25 Revenue₹100 Cr FY24 Revenue₹58 Cr FY23 Revenue
  • Investment Management (Standalone)
    ₹30 Cr FY25 Top Line (Fee)

Capital allocation

high confidence
  • Liquidity Liquidity disclosed NBFC business maintains a strong capital position with a capital adequacy ratio of approximately 24%.
    Our NBFC business continues to maintain a strong capital position with a capital adequacy ratio of approximately 24%.

Guidance & targets

Fund Management

  • Fund size for new AIF in GIFT City Fund Management · next 12-18 months · Medium confidence $100 million
    we will eventually have a $100 million fund which we will be running in GIFT in the next 12-18 months.

    — Nirbhay Vassa

  • Fee income from new AIF in GIFT City Fund Management · when $100M fund is achieved · Medium confidence 2-3x current earnings
    So, you can assume that the fee for a 100 million fund should be, if everything goes right, about two or three times what we are earning currently.

    — Nirbhay Vassa

What to watch in Q1 FY26

Launch and initial AUM of new AIF in GIFT City

Next quarter / within 12-18 months
Current Existing AIF redeemed, new AIF being launched
Target Successful launch and initial AUM build-up towards $100 million target

Why it matters

This is a key strategic initiative expected to significantly boost future fee income and expand the company's fund management business.

We had our own AIF, which we redeemed during the year because we are launching a new AIF in GIFT City.

Risks & concerns

  • Volatile Market Conditions

    medium

    The Global Arbitrage Fund attracts strong investor interest, especially from those seeking risk-adjusted returns in a volatile market, indicating management's awareness of market volatility.

    Management acknowledged

Q&A highlights

3 direct
Sustainable EBIT Margin Direct
I will reiterate that this is a multifaceted business. If you have access to the numbers and you go to your segment report, that is the true indicator of margins if you really want to see it.

Analyst questioned the sustainability of EBIT margins, prompting management to clarify that segment-wise performance is a more accurate indicator due to the multifaceted business model.

Asked by Vaishal Balada

Redemptions and Revenue Dip Direct
We have not seen dip in revenue at all, actually. The fee-based business has gone up. Yes, there are redemptions, but that is part of a strategic plan. We had our own AIF, which we redeemed during the year because we are launching a new AIF in GIFT City.

Management clarified that redemptions were a strategic move related to launching a new AIF in GIFT City, and confirmed that overall revenue, particularly from fee-based business, had not dipped.

Asked by Vaishal Balada

Agency Fee Growth Trajectory (Standalone Financials) Direct
from the perspective of investment management or asset management fee this year we have delivered a top line of approximately Rs. 30 crores for Abans Financial Services. And this was our first year of completing as an investment manager.

Provided specific revenue figures for the investment management segment and outlined the future growth potential from new funds, particularly the upcoming $100 million AIF in GIFT City.

Asked by Kunal Shah

2 min read 6 chapters

Detailed narrative

Strong Financial Performance in Q4 and FY25

Abans Financial Services reported a robust Q4 FY25 with EBITA at ₹47 crores, a 27% year-on-year increase, and net profit at ₹30 crores, up 43% YoY. For the full fiscal year 2025, EBITA reached ₹188 crores, growing 25% YoY, while net profit stood at ₹109 crores, marking a 22.5% increase over FY24. These results reflect a well-diversified and strategically aligned business model.

Strategic Shift Towards Fee-Based Investment Services

The company's strategic focus on building a sustainable, annuity-like income stream from fee-based investment services has yielded significant results. This segment contributed 70% to the overall EBIT in FY25, a substantial increase from 50% in FY24 and 25% in FY23. Revenue from fee-based investment services grew from ₹100 crores in FY24 to ₹165 crores in FY25, demonstrating consistent and meaningful progress.

Growth in Assets Under Management (AUM) and Global Arbitrage Fund

Total AUM as of March 31, 2025, was approximately ₹3200 crores. A key growth driver was the Global Arbitrage Fund, which contributed ₹831 crores, representing over 25% of the total AUM. This fund continues to attract strong investor interest, especially from those seeking risk-adjusted returns in a volatile market, highlighting its strategic importance.

Robust NBFC Performance and Capital Position

The NBFC business continues to maintain a strong capital position with a capital adequacy ratio of approximately 24%. Its lending books stood at around ₹350 crores, with 75% of this exposure directed towards non-group entities. This indicates a diversified and risk-adjusted portfolio, contributing to the overall stability of the company.

New AIF Launch and Future Growth Outlook

The company strategically redeemed an existing AIF during the year to launch a new AIF in GIFT City. Management aims for this new fund to reach a size of $100 million within the next 12-18 months. They anticipate that the fee income from a $100 million fund, if successful, could be two to three times higher than the current earnings of approximately ₹30 crores from the investment management segment in FY25.

Clarification on EBIT Margin Interpretation

Management clarified that the overall EBIT margin is not the sole true indicator for a multifaceted business that includes principal investment in treasury (physical commodity trade and capital market trades). They emphasized that segment-wise reports provide a clearer picture, noting that fee-based business margins improve as the segment expands without a substantial increase in cost, and lending business margins remain intact.

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