Performance Overview

IIFL Finance delivered a robust quarter with consistent growth across core businesses, driven by a strategic focus on secured lending, disciplined portfolio rebalancing, and improved operating efficiency.

Key Financial Figures (Consolidated)

  • Total Income: Stood at ₹2,202.4 Cr, up 34% YoY and 5% QoQ (Q4FY26: ₹2,090.0 Cr, Q1FY26: ₹1,637.9 Cr).
  • Pre-Provision Operating Profit (PPOP): Rose to ₹1,252.4 Cr, up 50% YoY and 7% QoQ (Q4FY26: ₹1,172.7 Cr, Q1FY26: ₹836.1 Cr).
  • Profit Before Tax (PBT): Increased to ₹928.6 Cr, up 161% YoY and 12% QoQ (Q4FY26: ₹832.6 Cr, Q1FY26: ₹356.3 Cr).
  • Profit After Tax (pre-Non-Controlling Interest): Stood at ₹713.1 Cr, up 160% YoY and 14% QoQ (Q4FY26: ₹623.2 Cr, Q1FY26: ₹274.2 Cr).
  • Profit After Tax (post-Non-Controlling Interest): Stood at ₹675.0 Cr, up 189% YoY and 15% QoQ (Q4FY26: ₹586.8 Cr, Q1FY26: ₹233.4 Cr).
  • Assets Under Management (AUM): Grew to ₹1,15,523 Cr, up 38% YoY and 7% QoQ (Q4FY26: ₹1,08,180 Cr, Q1FY26: ₹83,889 Cr).
  • Gross NPA: Stood at 1.6%, up 9 bps QoQ (Q4FY26: 1.5%, Q1FY26: 2.3%).
  • Net NPA: Stood at 0.8%, up 9 bps QoQ (Q4FY26: 0.7%, Q1FY26: 1.1%).
  • Provision Coverage Ratio: Strengthened to 94%.
  • Return on Assets (ROA): Stood at 3.1%, up 156 bps YoY (Q1FY26: 1.6%).
  • Return on Equity (ROE): Stood at 19.5% (annualized), up 1188 bps YoY (Q1FY26: 7.6%).
  • Book Value per Share: Stood at ₹333.9, up 15% YoY and 5% QoQ (Q4FY26: ₹318.8, Q1FY26: ₹291.5).
  • Earnings per Share (basic, not annualized): Stood at ₹15.9, up 189% YoY and 15% QoQ (Q4FY26: ₹13.8, Q1FY26: ₹5.5).
  • Liquidity Position: Strong liquidity of ₹7,148 Cr.
  • Computed Consolidated CRAR: Stood at 24.3%.

Business Segment Performance (AUM)

  • Gold Loans: AUM surged to ₹58,406 Cr, up 114% YoY and 11% QoQ. GNPA at 0.61%.
  • Home Finance: AUM stood at ₹41,540 Cr, up 4% QoQ. GNPA at 1.46%.
  • MSME Loans: AUM grew to ₹10,808 Cr, up 9% QoQ. Comprises Secured MSME (₹10,459 Cr) and Supply Chain (₹348 Cr).
  • Microfinance: AUM stood at ₹9,473 Cr, up 4% QoQ.
  • Core Business AUM (Gold + Home + MSME + Microfinance): ₹1,11,717 Cr.
  • Discontinued Business (Personal Loan and Unsecured Business Loan): ₹2,507 Cr.
  • Construction Real Estate (CRE): ₹872 Cr.
  • Capital Market: ₹427 Cr.

Key Updates & Strategic Initiatives

  • Moody's Rating: Assigned Ba3 Issuer rating and (P)Ba3 GMTN program rating; outlook stable.
  • Social Bonds Issuance: Raised US$500 million through Social Bonds; proceeds directed to income-generating loans for women, low-income, and rural/semi-urban borrowers.
  • Crisil ESG Rating: Assigned an ESG rating of 'Crisil ESG 66' and Core ESG rating of 'Crisil Core ESG 69'.
  • Strategic Focus: "Resilient, Capital-Efficient Growth" anchored on secured lending, AI-led operations, branch-led distribution, and co-lending partnerships.
  • Off-Book AUM: Cumulative Direct Assignment + co-lending originations of ₹1.55 lakh Cr since FY14 through Q4FY26, with zero losses reported in co-lent portfolios.
  • AI Transformation: Accelerating AI-led transformation across underwriting, collections, customer engagement, and cross-sell. Key initiatives include ML-led Voice AI, multilingual customer bot, AI video training for frontline staff, and AI-powered gold-image fraud detection.

Leadership Update

  • Mr. Vikas Jain joined as Chief Financial Officer, bringing over two decades of experience from Hinduja Leyland Finance and Bajaj Finserv Group.

Outlook & Targets

IIFL Finance outlined its FY27 targets:

  • AUM growth of ~25%
  • ROA of 3.1-3.3%
  • ROE of 16-20%
  • Off-book mix of 35-40%

The 3-year plan (FY28-FY29) targets:

  • AUM CAGR of ~20%
  • Credit Costs of 1.0-1.2%
  • ROA of 3.6-3.8%
  • ROE of 18-20%
  • Off-book mix of ~40%

Equity Raise

The Board has proposed an enabling resolution for shareholders' approval at the AGM on July 24, 2026, to raise equity capital through permitted routes (QIP, FPO, preferential issue, rights issue, etc.) to strengthen the capital position and support future growth.

Subsidiary Performance Highlights

  • IIFL Finance (Standalone): AUM ₹63,170 Cr (up 10% QoQ), PAT ₹467.1 Cr, ROE 24.6%, Gross NPA 1.3%.
  • IIFL Home Finance: AUM ₹41,540 Cr, PAT (pre-NCI) ₹185.5 Cr, CRAR 41.7%.
  • IIFL Samasta Finance (Microfinance): AUM ₹10,813 Cr, PAT (pre-NCI) ₹61.2 Cr, CRAR 24.9%, Gross NPA 3.3%.

Awards and Recognition

  • ESG ratings upgrades/reaffirmations as of June 2026: Sustainalytics Risk Rating improved to 19.1 (Low Risk) from 25.9 (Medium Risk); S&P Global CSA 2025 maiden score of 46; ESG Risk.ai Rating stable at 69 (Strong); NSE Rating stable at 65 (Strong); CRISIL ESG Rating stable at 60 (Strong).
  • IIFL Foundation initiatives: Miyawaki Plantation in Udaipur (11,000 trees), Sakhiyon Ki Baadi program (18,432 girl children across 715 learning centers), distribution of 12,000 electrolyte ORS sachets to Mumbai Traffic Police.