Earnings release
Page 1
Fairfax India Holdings Corporation News Release TSX Stock Symbol: FIH.U TORONTO, November 6, 2025 NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES THIRD QUARTER FINANCIAL RESULTS (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.) Fairfax India Holdings Corporation (TSX: FIH.U) announces net earnings of $3.2 million ($0.02 net earnings per diluted share) in the third quarter of 2025, compared to net earnings of $34.0 million in the third quarter of 2024 ($0.25 net earnings per diluted share). The company's book value per share decreased 3.3% to $20.72 at September 30, 2025 from $21.43 at June 30, 2025 ( $20.96 at December 31, 2024 ), primarily due to unrealized foreign currency translation losses as a result of the depreciation of the Indian rupee against the U.S. dollar during the third quarter of 2025, more than offsetting unrealized gains on investments. Highlights for the third quarter of 2025 included the following: • Net change in unrealized gains on investments of $59.5 million principally arose from increases in the fair values of the company's private company investments in BIAL ( $160.2 million ), Seven Islands ($35.1 million ) and Saurashtra ( $16.2 million ), partially offset by decreases in the fair values of publicly listed investments in IIFL Capital ( $68.1 million ), Fairchem Organics ( $19.6 million ), CSB Bank ($19.2 million), IIFL Finance ($15.1 million) and 5paisa ($6.2 million), and on private company investments in Sanmar ($12.2 million) and Jaynix ($9.3 million). • Unrealized foreign currency translation losses recorded by the company relate to the translation of Indian rupee-denominated net assets into U.S. dollars, which is the company's presentation currency. The company recorded unrealized foreign currency translation losses of $103.1 million due to the depreciation of the Indian rupee against the U.S. dollar during the third quarter of 2025. • On August 26, 2025 the company completed the second installment payment of $94.4 million relating to deferred purchase consideration for the acquisition of an additional 10.0% equity interest in BIAL completed in February 2025. At September 30, 2025 the company's payable for securities purchased of $76.5 million represents the remaining installment payment to be settled in the third quarter of 2026. • On September 12, 2025 the company entered into an agreement to sell its 51.0% equity interest in Saurashtra Freight Private Limited ("Saurashtra") for approximately $75 million ( 6.6 billion Indian rupees). The transaction is subject to customary closing conditions and is expected to be completed in the fourth quarter of 2025. Fairfax India is in strong financial health, with cash and marketable securities at September 30, 2025 of $72.9 million , $69.5 million available under its revolving credit facility and expected proceeds from the sale of Saurashtra referred to above. There were 134.8 million and 135.2 million weighted average common shares outstanding during the third quarters of 2025 and 2024, respectively. At September 30, 2025 there were 104,810,704 subordinate voting shares and 30,000,000 multiple voting shares outstanding. Unaudited balance sheets, earnings (loss) and comprehensive income (loss) information follow and form part of this press release. Fairfax India's detailed third quarter report can be accessed at its website www.fairfaxindia.ca. FAIRFAX INDIA HOLDINGS CORPORATION 95 Wellington Street West, Suite 800, Toronto, Ontario, M5J 2N7 Telephone: 416-367-4755
Page 2
Fairfax India Holdings Corporation is an investment holding company whose objective is to achieve long term capital appreciation, while preserving capital, by investing in public and private equity securities and debt instruments in India and Indian businesses or other businesses with customers, suppliers or business primarily conducted in, or dependent on, India. For further information, contact: John Varnell, Vice President, Corporate Affairs (416) 367-4755 2
Page 3
CONSOLIDATED BALANCE SHEETS as at September 30, 2025 and December 31, 2024 (unaudited - US$ thousands except per share amounts) Assets Cash and cash equivalents 14,790 59,322 Bonds 80,638 180,507 Common stocks 3,670,553 3,381,206 Total cash and investments 3,765,981 3,621,035 Interest and dividends receivable 4,078 8,849 Income taxes refundable 168 174 Other assets 480 722 Total assets 3,770,707 3,630,780 Liabilities Accounts payable and accrued liabilities 787 1,300 Accrued interest expense 2,778 8,611 Income taxes payable 945 5,379 Payable to related parties 10,131 10,099 Payable for securities purchased 76,500 — Deferred income taxes 169,890 149,780 Borrowings 577,740 498,349 Total liabilities 838,771 673,518 Equity Common shareholders' equity 2,793,378 2,826,495 Non-controlling interests 138,558 130,767 Total equity 2,931,936 2,957,262 3,770,707 3,630,780 Book value per share $ 20.72 $ 20.96 September 30, 2025 December 31, 2024 3
Page 4
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) for the three and nine months ended September 30, 2025 and 2024 (unaudited - US$ thousands except per share amounts) 2025 2024 2025 2024 Income Interest 1,478 5,687 6,488 15,455 Dividends 10,490 1,639 13,762 9,177 Net realized gains on investments 538 330 1,237 218,654 Net change in unrealized gains (losses) on investments 59,502 83,390 167,523 (143,725) Net foreign exchange losses (22,974) (2,322) (21,858) (2,334) 49,034 88,724 167,152 97,227 Expenses Investment and advisory fees 10,655 10,384 30,697 29,990 General and administration expenses 1,443 1,698 4,454 6,342 Interest expense 7,788 6,380 21,775 19,141 19,886 18,462 56,926 55,473 Earnings before income taxes 29,148 70,262 110,226 41,754 Provision for income taxes 13,333 32,950 27,319 43,504 Net earnings (loss) 15,815 37,312 82,907 (1,750) Attributable to: Shareholders of Fairfax India 3,222 33,971 70,111 (5,391) Non-controlling interests 12,593 3,341 12,796 3,641 15,815 37,312 82,907 (1,750) Net earnings (loss) per basic and diluted share $ 0.02 $ 0.25 $ 0.52 $ (0.04) Shares outstanding (weighted average) 134,810,704 135,152,447 134,821,079 135,223,349 Third quarter First nine months CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) for the three and nine months ended September 30, 2025 and 2024 (unaudited - US$ thousands) Third quarter First nine months 2025 2024 2025 2024 Net earnings (loss) 15,815 37,312 82,907 (1,750) 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) (103,083) (15,243) (107,880) (21,584) Comprehensive income (loss) (87,268) 22,069 (24,973) (23,334) Attributable to: Shareholders of Fairfax India (95,078) 19,365 (32,764) (26,075) Non-controlling interests 7,810 2,704 7,791 2,741 (87,268) 22,069 (24,973) (23,334) 4
Page 5
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. 5
Page 6
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. 6