Edelweiss Financial Services Limited is coming up with its latest Secured NCD issue in March 2026 offering interest rates up to 10% per annum. In a falling interest rate scenario, 10% secured NCD from an established financial services group looks attractive for income investors. But should you subscribe to this NCD issue? Let us analyze the issue details, company financials, risks, and whether it fits into your investment portfolio.
About Edelweiss Financial Services Limited
Incorporated in 1995, Edelweiss Financial Services Limited (EFSL) is a Mumbai-based diversified financial services group. The company was earlier known as Edelweiss Capital Limited.
The company operates across multiple financial segments:
- Retail and corporate credit
- Asset management (Mutual Funds & Alternatives)
- Asset reconstruction
- Wealth management
- Life and general insurance
As per the Draft Prospectus dated February 18, 2026, the company has a PAN India presence with over 260 offices including international locations and employs more than 5,800 people.
Edelweiss Financial Services NCD March 2026 – Issue Highlights
| Particulars | Details |
|---|---|
| Issue Type | Secured, Redeemable, Non-Convertible Debentures |
| Issue Start Date | 2-March-2026 |
| Issue Start Date | 16-March-2026 |
| Base Issue Size | ₹175 Crores |
| Green Shoe Option | ₹175 Crores |
| Total Issue Size | ₹350 Crores |
| Face Value | ₹1,000 per NCD |
| Issue Price | ₹1,000 |
| Listing | BSE |
| Minimum Investment | ₹10,000 (10 NCDs) |
| Market Lot | 1 NCD |
| Rating | CRISIL A+ / Stable |
| Coupon | 8.65% to 10% p.a. |
| Allotment | First Come First Serve |
Edelweiss NCD Coupon Rates & Tenure (Series Wise Details)
Below are the actual series-wise details as per the issue structure:
| Series | Tenor | Interest Payment | Coupon (% p.a.) | Effective Yield (% p.a.) | Maturity Amount (₹) |
|---|---|---|---|---|---|
| I | 24 Months | Annual | 8.65% | 8.64% | 1,000 |
| II | 24 Months | Cumulative | NA | 8.65% | 1,180.75 |
| III | 36 Months | Monthly | 8.80% | 9.15% | 1,000 |
| IV | 36 Months | Annual | 9.15% | 9.14% | 1,000 |
| V | 36 Months | Cumulative | NA | 9.15% | 1,300.70 |
| VI | 60 Months | Monthly | 9.21% | 9.60% | 1,000 |
| VII | 60 Months | Annual | 9.60% | 9.59% | 1,000 |
| VIII | 60 Months | Cumulative | NA | 9.60% | 1,581.85 |
| IX | 120 Months | Monthly | 9.58% | 10.10% | 1,000 |
| X | 120 Months | Annual | 10.00% | 9.99% | 1,000 |
Note:
- Cumulative options do not pay periodic interest. Interest is compounded and paid at maturity.
- Monthly and annual options provide regular income payout.
- Series X (10-year annual) offers the highest coupon of 10% per annum.
Credit Rating – What Does It Mean?
The NCDs are rated CRISIL A+ with Stable outlook.
An A+ rating indicates:
- Adequate degree of safety
- Low credit risk
- Stable outlook
However, this is not a AAA rating. Investors should understand that moderate credit risk exists compared to top-tier AAA rated issuers.
Edelweiss Financial Services Credit Rating Trend (Last 5 Years)
Credit rating history helps investors understand whether the company’s credit profile is improving, stable, or deteriorating over time.
| Year | Rating Agency | Rating | Outlook | Remarks |
|---|---|---|---|---|
| 2022 | CRISIL | A+ | Stable | Stable credit profile maintained |
| 2023 | CRISIL | A+ | Stable | No downgrade despite NBFC sector volatility |
| 2024 | CRISIL | A+ | Stable | Business restructuring supported stability |
| 2025 | CRISIL | A+ | Stable | Consistent servicing track record |
| 2026 | CRISIL | A+ | Stable | Rating reaffirmed for current NCD issue |
What This Trend Indicates
- The company has maintained a stable A+ rating for multiple years.
- No recent downgrade signals credit stability.
- However, absence of upgrade indicates moderate risk profile compared to higher-rated NBFC peers.
Investor Insight: A stable long-term rating without downgrades is a positive sign, but investors should remember that A+ rated NCDs still carry higher risk than AAA-rated instruments.
Financial Performance of Edelweiss Financial Services
(₹ Crores – Consolidated)
| Particulars | FY25 | FY24 | FY23 |
|---|---|---|---|
| Total Assets | 41,622 | 42,919 | 44,064 |
| Total Income | 9,518 | 9,601 | 8,632 |
| Profit After Tax | 535 | 528 | 405 |
| Reserves & Surplus | 58,260 | 59,593 | 77,563 |
Observations
- PAT increased marginally from FY24 to FY25
- Stable profitability
- Strong asset base
- Revenue slightly declined year-on-year
The company has shown stability, though growth has been moderate in recent years.
Objects of the Issue
The net proceeds from the issue are proposed to be used for:
- Repayment / prepayment of existing borrowings
- General corporate purposes
This indicates refinancing of debt, which is common for NBFCs.
Why Investors May Consider This NCD?
1) Attractive Yield
Up to 10% secured returns – higher than most bank FDs.
2) Secured NCD
The NCDs are secured with asset cover as per issue terms.
3) Listed on BSE
Provides liquidity (subject to market demand).
4) Diversified Financial Services Group
Edelweiss has multiple revenue streams across credit, asset management and insurance.
Key Risk Factors
- Credit Rating is A+ (not AAA)
- NBFC sector is sensitive to liquidity cycles
- Revenue growth has been flat
- 10-year tenure carries interest rate risk
- Refinancing risk since funds are used to repay borrowings
Investors should read the risk factors carefully before investing.
Taxation
Interest earned on NCDs is fully taxable as per your income tax slab. There is no TDS if held in demat form.
If you are in the 30% tax bracket, the effective post-tax return on a 10% coupon would be around 7%.
Who Should Invest?
Suitable for:
- Investors looking for regular income
- Investors willing to take moderate credit risk
- Investors diversifying beyond bank FDs
- Those comfortable holding till maturity
Not suitable for:
- Conservative investors seeking AAA-level safety
- Investors in high tax brackets seeking tax-efficient income
Should You Subscribe?
Edelweiss Financial Services NCD February 2026 offers decent yield up to 10%, secured structure, and a reasonable A+ credit rating.
However, growth is moderate and NBFC sector risks remain.
Our View:
If you are building a diversified debt portfolio, you may consider allocating a small portion (5%–10%) to this NCD, preferably in shorter tenure options (24–60 months) instead of 10 years to reduce interest rate risk.
High-risk appetite investors can consider longer tenure for 10% yield. Conservative investors may prefer AAA-rated alternatives.
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Very nice detailed year-wise rating record. This gives confidence that whether there is any upgrade/downgrade of rating during the last 5 years or so. Further, the rating is also from CRISIL which has a very long outstanding track record in terms of their rating business and has a global affiliation also. CRISIL is one of the finest rating agency in India and their rating methodology is very robust and detailed. So we can trust on the rating by CRISIL.
Agree