Fairfax India Holdings Corporation: Third Quarter Financial Results

Executive Summary

• Fairfax India reported net earnings of $3.2 M ($0.02 per diluted share) for Q3 2025, a steep decline from $34.0 M ($0.25 per diluted share) in Q3 2024.
• Book value per share fell 3.3% to $20.72 as of September 30 2025, driven primarily by $103.1 M unrealized foreign‑currency translation losses linked to rupee depreciation.
• The company entered into a definitive agreement to sell its 51% stake in Saurashtra Freight Private Ltd. for approximately $75 M (subject to closing in Q4 2025).

Key Details

• Net Earnings: $3.2 M ($0.02 per diluted share) vs. $34.0 M a year earlier.
• Book Value per Share: Decreased 3.3% to $20.72 (down from $21.43 at June 30 2025).
• Unrealized Gains/Losses on Investments: Net change of +$59.5 M, with major gains in private holdings (BIAL $160.2 M, Seven Islands $35.1 M, Saurashtra $16.2 M) offset by declines in listed securities (IIFL Capital, Fairchem Organics, CSB Bank, etc.).
• Foreign‑Currency Translation Losses: $103.1 M recorded due to rupee depreciation against the U.S. dollar during Q3 2025.
• Deferred Purchase Consideration: Completed second installment of $94.4 M on February 2025 acquisition of an additional 10% equity in BIAL; remaining payable of $76.5 M due Q3 2026.
• Disposition of Saurashtra Freight: Agreement to sell 51% equity interest for ~US$75 M (≈₹6.6 B); transaction pending customary closing conditions, expected Q4 2025.
• Liquidity Position: Cash and marketable securities $72.9 M; $69.5 M available under revolving credit facility; anticipated proceeds from Saurashtra sale to bolster liquidity.
• Share Structure: 134.8 M weighted‑average common shares outstanding in Q3 2025 (104,810,704 subordinate voting + 30,000,000 multiple voting).
• Consolidated Balance Sheet Highlights (as of Sep 30 2025):
• Total assets $3.77 B (up from $3.63 B YoY).
• Total liabilities $839 M (increase from $674 M YoY).
• Equity $2.93 B (slight decline YoY).
• Consolidated Statement of Earnings (Q3 2025):
• Revenue: Interest $1,478 K; Dividends $10,490 K; Net realized gains on investments $538 K; Net unrealized gains $59,502 K.
• Expenses: Investment/advisory fees $10,655 K; G&A $1,443 K; Interest expense $7,788 K.
• Earnings before tax $29,148 K; Income tax provision $13,333 K; Net earnings $15,815 K.
• Comprehensive Income: Net loss after accounting for unrealized foreign‑currency translation losses of $103.1 M, resulting in comprehensive loss of $87.3 M for the quarter.

Notable Quotes

(No direct CEO/President quotes were included in the release.)