Fairfax India Holdings Corporation: Third Quarter Financial Results

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(Note: All dollar amounts in this press release are expressed in U.S. dollars except as otherwise noted. The financial results are derived from unaudited financial statements prepared using the recognition and measurement requirements of International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS® Accounting Standards"), except as otherwise noted. This press release contains certain non-GAAP and other financial measures, including book value per share and cash and marketable securities, that do not have a prescribed meaning under IFRS Accounting Standards and may not be comparable to similar financial measures presented by other issuers. See "Glossary of non-GAAP and other financial measures" at the end of this press release for further details.)

TORONTO, Nov. 03, 2026 (GLOBE NEWSWIRE) -- Fairfax India Holdings Corporation (TSX: FIH.U) announces net earnings of $37.6 million ($0.28 net earnings per diluted share) in the third quarter of 2026, compared to net earnings of $3.2 million in the third quarter of 2025 ($0.02 net earnings per diluted share). Net earnings in the third quarter of 2026 principally reflected net gains on investments, partially offset by investment and advisory fees. The company's book value per share increased slightly to $20.75 at September 30, 2026 from $20.74 at June 30, 2026 ($22.94 at December 31, 2025), as net earnings were largely offset by unrealized foreign currency translation losses.

"Our net earnings of $37.6 million in the quarter was largely comprised of net gains on public common stocks of $52.8 million, including realized gains on the sale of a portion of our IIFL Finance equity interest. We expect fluctuations in the value of our common stock investments from quarter to quarter and remain focused on their long term performance," said Gopalakrishnan Soundarajan, Chief Executive Officer.

Highlights for the third quarter of 2026 included the following:

• Net change in unrealized gains on investments of $20.9 million principally from increases in the fair values of the company's publicly listed investments in IIFL Finance ($58.9 million) and IIFL Capital ($15.3 million) (inclusive of an unrealized gain related to a forward derivative), and on its private company investment in Maxop ($8.9 million), partially offset by decreases in the fair values of the company's listed investment in 5paisa ($6.5 million) and private investment in Global Aluminium ($5.7 million), as well as a reversal of prior period gains of $30.6 million related to the sale of IIFL Finance common shares.
• Net realized gains on investments of $36.3 million principally related to the partial sale of our equity interest in IIFL Finance for gross proceeds of $39.1 million.
• The company recorded unrealized foreign currency translation losses of $36.0 million attributable to shareholders due to the depreciation of the Indian rupee against the U.S. dollar.
  

Subsequent to September 30, 2026:

• On October 14, 2026 Fairfax Financial Holdings Limited ("FFHL"), Fairfax India's controlling shareholder, was selected by the Government of India as the strategic buyer for a 60.72% equity stake in IDBI Bank Limited ("IDBI Bank"). FFHL currently expects the purchase price to be satisfied through a combination of cash on hand or otherwise available to FFHL through existing credit sources, potential asset sales and the potential contribution, at market prices, of interests in certain investments, including Fairfax India's equity interest in IIFL Capital. Binding definitive agreements in connection with the purchase of the equity stake in IDBI Bank and the proposed contributions have not yet been entered into by any of FFHL, Fairfax India, IDBI Bank, the Government of India, or any other party. When definitive transaction agreements relating to the proposed purchase and contribution transactions are entered into by the parties, each proposed transaction will be subject to the satisfaction of numerous governmental, regulatory, equityholder, debtholder, and other approvals and consents. Prem Watsa, Chairman and Chief Executive Officer of FFHL and Founder of Fairfax India, said "As discussed during our conference call on October 15, 2026 we are very excited to be selected by the Government of India to be the purchaser of the Government's interest in IDBI Bank. This transaction represents a once in a lifetime opportunity to purchase a majority interest in a bank in one of the world's fastest growing economies and combine it with a successful and growing insurance company in Digit and an established provider of investment banking and wealth management services in IIFL Capital."

• On November 3, 2026 Fairfax India amended its existing credit agreement with a syndicate of lenders to, among other things, increase the borrowing limit of its revolving credit facility from $220.0 million to $470.0 million on a short term temporary basis to support the company's previously announced additional investment in IIFL Capital.

Fairfax India is in strong financial health, with cash and marketable securities of $55.5 million at September 30, 2026, and $205.0 million available under its revolving credit facility.

There were 134.2 million and 134.8 million weighted average common shares outstanding during the third quarters of 2026 and 2025, respectively. At September 30, 2026 there were 104,184,904 subordinate voting shares and 30,000,000 multiple voting shares outstanding.

Unaudited consolidated balance sheets, earnings (loss) and comprehensive income (loss) information follow and form part of this press release. Fairfax India's detailed third quarter report can be accessed at its website www.fairfaxindia.ca.

Fairfax India Holdings Corporation is an investment holding company whose objective is to achieve long term capital appreciation, while preserving capital, by investing in public and private equity securities and debt instruments in India and Indian businesses or other businesses with customers, suppliers or business primarily conducted in, or dependent on, India.

This press release may contain forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements may relate to the company's or an Indian Investment's future outlook and anticipated events or results and may include statements regarding the financial position, business strategy, growth strategy, budgets, operations, financial results, taxes, dividends, plans and objectives of the company. Particularly, statements regarding future results, performance, achievements, prospects or opportunities of the company, an Indian Investment, or the Indian market are forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”.

Forward-looking statements are based on our opinions and estimates as of the date of this press release, and they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the following factors: oil price risk; geographic concentration of investments; potential lack of diversification; foreign currency fluctuation; volatility of the Indian securities markets; investments may be made in foreign private businesses where information is unreliable or unavailable; valuation methodologies involve subjective judgments; financial market fluctuations; pace of completing investments; minority investments; reliance on key personnel and risks associated with the Investment Advisory Agreement; disruption of the company's information technology systems could significantly affect the company's business; lawsuits; use of leverage; significant ownership by Fairfax may adversely affect the market price of the subordinate voting shares; trading price of subordinate voting shares relative to book value per share; weather risk; taxation risks; emerging markets; legal, tax and regulatory risks; MLI; economic risk; reliance on trading partners; and economic disruptions from global conflicts and the development of other geopolitical events worldwide. Additional risks and uncertainties are described in the company's annual information form dated March 6, 2026 which is available on SEDAR+ at www.sedarplus.ca and on the company's website at www.fairfaxindia.ca.These factors and assumptions are not intended to represent a complete list of the factors and assumptions that could affect the company. These factors and assumptions, however, should be considered carefully.

Although the company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The company does not undertake to update any forward-looking statements contained herein, except as required by applicable securities laws.

GLOSSARY OF NON-GAAP AND OTHER FINANCIAL MEASURES
Management analyzes and assesses the financial position of the consolidated company in various ways. Certain of the measures included in this press release, which have been used consistently and disclosed regularly in the company's Annual Reports and interim financial reporting, do not have a prescribed meaning under IFRS Accounting Standards and may not be comparable to similar measures presented by other companies. Those measures are described below.

Book value per share – The company considers book value per share a key performance measure in evaluating its objective of long term capital appreciation, while preserving capital. This measure is also closely monitored as it is used to calculate the performance fee, if any, to Fairfax Financial Holdings Limited. This measure is calculated by the company as common shareholders' equity divided by the number of common shares outstanding.

Cash and marketable securities – The company uses this measure to monitor short term liquidity risk. This measure is calculated by the company as the sum of cash, cash equivalents, short term investments and Government of India bonds.