Fairfax India Holdings Corporation: Second 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, July 31, 2025 (GLOBE NEWSWIRE) -- Fairfax India Holdings Corporation (TSX: FIH.U) announces net earnings of $278.1 million ($2.06 net earnings per diluted share) in the second quarter of 2025, compared to net earnings of $254.1 million in the second quarter of 2024 ($1.88 net earnings per diluted share). The company's book value per share increased 10.4% to $21.43 at June 30, 2025 from $19.41 at March 31, 2025 ($20.96 at December 31, 2024), primarily due to unrealized gains recorded on the company's publicly listed investments.

Highlights for the second quarter of 2025 included the following:

Net change in unrealized gains on investments of $330.9 million principally arose from increases in the fair values of the company's publicly listed investments of $329.1 million, including IIFL Capital ($129.2 million), IIFL Finance ($110.2 million), CSB Bank ($73.3 million), Fairchem Organics ($11.4 million) and 5paisa ($5.0 million), and private company investments of $0.8 million including BIAL ($6.3 million) and Seven Islands ($3.5 million), partially offset by unrealized losses on the company's investment in Sanmar ($12.3 million).
The company continued to buy back shares under its normal course issuer bid and during the second quarter of 2025 purchased for cancellation 28,758 subordinate voting shares at a net cost of $0.4 million ($15.19 per subordinate voting share).

Fairfax India is in strong financial health, with cash and marketable securities at June 30, 2025 of $107.0 million and $79.2 million available under its revolving credit facility.

There were 134.8 million and 135.2 million weighted average common shares outstanding during the second quarters of 2025 and 2024, respectively. At June 30, 2025 there were 104,810,704 subordinate voting shares and 30,000,000 multiple voting shares outstanding.

Unaudited balance sheets, earnings (loss) and comprehensive income (loss) information follow and form part of this press release. Fairfax India's detailed second 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.

For further information, contact:	John Varnell, Vice President, Corporate Affairs (416) 367-4755

CONSOLIDATED BALANCE SHEETS
as at June 30, 2025 and December 31, 2024
(unaudited - US$ thousands except per share amounts)

	June 30, 2025		December 31, 2024
Assets
Cash and cash equivalents		20,216		59,322
Bonds		110,134		180,507
Common stocks		3,738,804		3,381,206
Total cash and investments		3,869,154		3,621,035

Interest and dividends receivable		3,173		8,849
Income taxes refundable		174		174
Other assets		582		722
Total assets		3,873,083		3,630,780

Liabilities
Accounts payable and accrued liabilities		1,019		1,300
Accrued interest expense		9,004		8,611
Income taxes payable		844		5,379
Payable to related parties		10,572		10,099
Payable for securities purchased		170,850		—
Deferred income taxes		163,039		149,780
Borrowings		498,610		498,349
Total liabilities		853,938		673,518

Equity
Common shareholders' equity		2,888,397		2,826,495
Non-controlling interests		130,748		130,767
Total equity		3,019,145		2,957,262
		3,873,083		3,630,780


Book value per share	$	21.43	$	20.96

CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
for the three and six months ended June 30, 2025 and 2024
(unaudited - US$ thousands except per share amounts)

	Second quarter					First six months
		2025			2024		2025		2024
Income
Interest		1,814			4,730		5,010		9,768
Dividends		274			489		3,272		7,538
Net realized gains on investments		83			101,400		699		218,324
Net change in unrealized gains (losses) on investments		330,883			183,812		108,021		(227,115	)
Net foreign exchange gains (losses)		(2,129	)		364		1,116		(12	)
		330,925			290,795		118,118		8,503
Expenses
Investment and advisory fees		10,643			10,122		20,042		19,606
General and administration expenses		1,363			2,108		3,011		4,644
Interest expense		7,232			6,381		13,987		12,761
		19,238			18,611		37,040		37,011

Earnings (loss) before income taxes		311,687			272,184		81,078		(28,508	)
Provision for income taxes		33,128			18,037		13,986		10,554
Net earnings (loss)		278,559			254,147		67,092		(39,062	)

Attributable to:
Shareholders of Fairfax India		278,113			254,142		66,889		(39,362	)
Non-controlling interests		446			5		203		300
		278,559			254,147		67,092		(39,062	)

Net earnings (loss) per basic and diluted share	$	2.06		$	1.88	$	0.50	$	(0.29	)
Shares outstanding (weighted average)		134,813,388			135,152,447		134,826,353		135,259,190

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
for the three and six months ended June 30, 2025 and 2024
(unaudited - US$ thousands)

	Second quarter				First six months
	2025		2024		2025		2024

Net earnings (loss)	278,559		254,147		67,092		(39,062	)
Other comprehensive loss, net of income taxes
Item that may be subsequently reclassified to net earnings (loss)
Unrealized foreign currency translation losses, net of income taxes of nil (2024 - nil)	(6,843	)	(633	)	(4,797	)	(6,341	)
Comprehensive income (loss)	271,716		253,514		62,295		(45,403	)

Attributable to:
Shareholders of Fairfax India	271,705		253,486		62,314		(45,440	)
Non-controlling interests	11		28		(19	)	37
	271,716		253,514		62,295		(45,403	)

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 risk; weather risk; taxation risks; emerging markets; legal, tax and regulatory risks; MLI; economic risk; reliance on trading partners; and economic disruptions from conflicts in Ukraine and the Middle East and the development of other geopolitical events and economic disruptions worldwide. Additional risks and uncertainties are described in the company's annual information form dated March 7, 2025 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.

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