Stock Jumps 10% on ₹3,600 Cr Carlyle Investment and Strong Q3 Results

Synopsis: The shares of the Financial Services company surged 10.5% after strong Q3 results and a Rs 3,600 crore Carlyle-led investment boosted growth outlook and investor confidence.

The shares of this company, which operates across multiple pillars, including Credit (housing/SME loans), Asset Management, Asset Reconstruction, Wealth Management, and Life/General Insurance, are in focus after Strong Q3 earnings and a huge investment.

With a market capitalization of Rs 11,627 crore, Edelweiss Financial Services Ltd’s shares on Tuesday made a day high of Rs 123 per share, up by 10.5 percent from its previous day’s close price of Rs 111.30 per share. This share of the company has given a return of 72 percent over the past five years.

What Happened

Edelweiss Financial Services Ltd and global private equity firm The Carlyle Group announced that Carlyle-affiliated funds will acquire a strategic majority stake in Nido Home Finance, Edelweiss’ wholly owned subsidiary. Under the Rs 3,600 crore deal, Carlyle Asia Partners will invest Rs 2,100 crore, comprising a 45 percent secondary stake purchase from Edelweiss and a Rs 1,500 crore primary equity infusion into Nido.

Founded in 2010, Nido is a leading Indian housing finance company serving affordable and mass-market segments. It operates a nationwide branch network across 800+ talukas and manages assets under management of Rs 4,804 crore, delivering home loan solutions with deep rural and semi-urban reach, supported by disciplined underwriting and scalable distribution.

Edelweiss aims to unlock value and accelerate Nido’s growth via fresh capital, while Carlyle’s investment signals confidence in India’s housing finance sector, leveraging its long financial services track record. Aditya Puri’s participation further strengthens the deal’s strategic depth and credibility.

Management Commentary: Rashesh Shah, Chairman & Managing Director, Edelweiss Financial Services, said Carlyle’s investment marks a key milestone, bringing a long-term partner to accelerate Nido’s growth amid strong structural demand in housing finance. 

Sunil Kaul, Partner and Asia Financial Services Sector Lead at Carlyle, highlighted confidence in India’s housing finance opportunity and emphasized supporting Nido’s scale-up, governance, and risk management to drive sustainable long-term growth.

Results Highlights

QoQ View: The total revenue of the company grew by 136.6 percent to Rs 4,404 crore in Q3 FY26 from Rs 1,861 crore in Q2 FY26. Accompanied by a PBT that grew to Rs 792 crore in Q3 FY26 from a negative PBT of Rs 46 crore in Q2 FY26 and a net profit growth of 54.2 percent QoQ to Rs 270 crore in Q3 FY26 from Rs 175 crore in Q2 FY26.

YoY View: The total revenue of the company grew by 132 percent to Rs 4,404 crore in Q3 FY26 from Rs 1,898 crore in Q3 FY25. Accompanied by a PBT growth of 337.5  percent YoY to Rs 792 crore in Q3 FY26 from Rs 181 crore in Q3 FY25 and a net profit growth of 74.1 percent YoY to Rs 270 crore in Q3 FY26 from Rs 155 crore in Q3 FY25.

Performance Highlights: Edelweiss delivered a strong nine-month performance, with consolidated PAT rising 45 percent YoY. Alternative Asset Management FPAUM(Fee-Paying Assets Under Management) grew 33 percent YoY to Rs 41,920 crore, while MF equity AUM increased 33 percent YoY to Rs 83,000 crore.

MSME and housing finance disbursements surged 84 percent and 38 percent YoY, respectively. Life and general insurance losses declined 29 percent and 24 percent YoY. Customer assets stood at Rs 2.4 trillion, supported by consolidated liquidity of Rs 5,600 crore.

Different business under Edelweiss Financial Services Ltd holds controlling stakes across its businesses: 100 percent in Edelweiss Alternative Asset (9M PAT Rs 222 crore), 90 percent in Edelweiss Mutual Asset Management (PAT Rs 79 crore), and 63 percent in Edelweiss Asset Reconstruction (9M PAT Rs 254 crore), ensuring strong control over capital-light, fee-driven verticals.

The lending and insurance portfolio is fully or near-fully owned, including ECL Finance (100 percent, 9M PAT Rs 15 crore), Nido Housing Finance (100 percent, 9M PAT Rs 23 crore), Zuno General  Life Insurance(100 percent, 9M PAT Rs (34) crore), and Edelweiss General Insurance (82 percent, PAT Rs (107) crore), providing diversified earnings and balance sheet-led growth visibility.

About the Company

Edelweiss is a diversified financial services company with seven independent and well-governed businesses. The businesses include Alternative Asset Management, Mutual Fund, Asset Reconstruction, NBFC, Housing Finance, General Insurance, and Life Insurance. The businesses have robust operating platforms, dedicated management teams, and strong boards that ensure the highest standards of governance. Edelweiss employs nearly 6,000 people, serves around 1.3 Crore customers, and manages around INR 2,45,000 Crores worth of assets.

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