Performance Overview

IIFL Finance Limited reported strong financial results for Q2FY27 (quarter ended September 30, 2026) with significant growth across key metrics. Total income rose 23% YoY to ₹2,339.6 crore, while pre-provision operating profit increased 31% YoY to ₹1,355.1 crore. Profit before tax rose 93% YoY to ₹1,073.7 crore. Profit After Tax (pre-NCI) stood at ₹805.0 Cr, marking 93% YoY growth and 13% QoQ growth.

Key Financial Metrics

  • Consolidated AUM: ₹1,24,268 Cr (up 8% QoQ, 38% YoY)
  • Gross NPA: 1.48% (down 7 bps QoQ, 66 bps YoY)
  • Net NPA: 0.87% (up 5 bps QoQ, down 13 bps YoY)
  • Provision Coverage Ratio: 91%
  • Book Value: ₹351.5
  • ROA: 3.1% (annualized for H1FY27)
  • ROE: 20.1% (annualized for H1FY27)
  • Liquidity Position: ₹13,805 Cr
  • Consolidated CRAR: 23.5% (computed)
  • EPS (H1FY27): ₹33.9 (not annualized)

Segment-wise Performance

Gold Loans:

  • AUM: ₹65,729 Cr (up 13% QoQ, 90% YoY)
  • Yield: 18.72% (up 15 bps QoQ)
  • GNPA: 0.90%
  • Gold Tonnage: 69.3 MT

Home Finance:

  • AUM: ₹43,070 Cr (up 4% QoQ)
  • Yield: 10.39% (portfolio), 11.8% (incremental)
  • GNPA: 1.38% (down 8 bps QoQ)
  • Disbursements: ₹3,498 Cr (up 10% QoQ)
  • Home Loan Share: 78.5% of total AUM

MSME Loans:

  • AUM: ₹11,948 Cr (up 11% QoQ)
  • Yield: 15.43%
  • GNPA: 3.03%
  • Shift towards secured MSME lending with secured portion at ₹11,596 Cr

Microfinance:

  • AUM: ₹9,489 Cr (broadly flat QoQ)
  • Yield: 24.04%
  • GNPA: 2.90%

Income Statement Highlights (Q2FY27)

  • Net Interest Income: ₹1,481.1 Cr (up 13% QoQ, 39% YoY)
  • Income from Off-book assets: ₹730.1 Cr (down 7% QoQ)
  • Other Income: ₹128.4 Cr (up 22% QoQ, 42% YoY)
  • Operating Expense: ₹984.5 Cr (up 4% QoQ, 13% YoY)
  • Loan Losses & Provision: ₹280.8 Cr (down 5% QoQ, 44% YoY)
  • Profit After Tax (pre-NCI): ₹805.0 Cr (up 13% QoQ, 93% YoY)

H1FY27 Performance

  • Total Income: ₹4,542.0 Cr (up 28% YoY)
  • PPOP: ₹2,607.5 Cr (up 40% YoY)
  • Loan Losses & Provision: ₹575.0 Cr (down 43% YoY)
  • PAT (pre-NCI): ₹1,518.1 Cr (up 119% YoY)
  • PAT (post-NCI): ₹1,441.5 Cr (up 136% YoY)

Balance Sheet Position (Consolidated)

Assets:

  • Cash and Bank Balances: ₹8,321 Cr
  • Loan Assets: ₹84,173 Cr
  • Investments: ₹6,183 Cr
  • Other Financial Assets: ₹2,750 Cr
  • Total Financial Assets: ₹101,501 Cr

Liabilities & Equity:

  • Debt Securities: ₹29,943 Cr
  • Borrowings (Other): ₹48,223 Cr
  • Subordinated Liabilities: ₹5,628 Cr
  • Shareholder's Equity: ₹15,432 Cr
  • Non-Controlling Interest: ₹1,782 Cr

Strategic Initiatives

AI Transformation:

  • Voice AI live in gold-loan sales with acquisition cost below 1% of loan value
  • AI credit assessment used for 85%+ of SME LAP applications
  • AI video-based sales training engaged 12,000+ sales employees
  • AI-powered fraud detection analyzed over 11 lakh gold jewellery images
  • Face recognition pilot completed across gold-loan branches

Capital Light Growth:

  • Cumulative DA + co-lending originations of ₹1.7 lakh Cr since FY14
  • Off-book AUM: ₹42,796 Cr (34% of consolidated AUM)
  • 18 active bank co-lending partners

Tokenised Bonds:

  • Completed ₹25 crore tokenised bond transaction
  • First non-PSU NBFC in India to undertake such transaction
  • Executed on MSEI through SEBI Regulatory Sandbox

Credit Rating Updates

  • Fitch Ratings upgraded Long-Term Issuer Default Rating to 'BB-' from 'B+'; outlook stable
  • CRISIL ESG Ratings assigned ESG rating of 'CRISIL ESG 66' and Core ESG rating of 'CRISIL Core ESG 70'

Management Commentary

Mr. Nirmal Jain, Founder & Managing Director: "Q2 FY27 delivered robust growth with AUM crossing ₹1.24 lakh crore, up 38% year-on-year, a 90% secured AUM and GNPA of 1.5%. ROE above 20% reflects strong gold and mortgage franchises, lower credit costs and improved operating efficiency."

Mr. Vikas Jain, CFO: "For H1FY27, PAT (pre-NCI) more than doubled year-on-year to ₹1,518 crore, supported by stronger operating leverage and a 43% reduction in loan losses and provisions YoY. With liquidity of ₹13,805 crore, a well-diversified borrowing mix and consolidated CRAR of 23.5%, we remain well positioned to fund growth."

Outlook

The company expects home loans and secured MSME lending to gain momentum as gold loan growth moderates. IIFL Finance enters the rest of FY27 with strong momentum, a robust balance sheet, and focus on scaling secured lending franchises, expanding co-lending partnerships, progressing the proposed equity raise, and maintaining superior asset quality and capital discipline.

Awards and Recognition

  • ET Iconic Brands of India 2026
  • Top 50 India's Best Workplaces for Women 2026 by Great Place to Work India
  • Best Innovation in CSR Practices Award for IIFL Foundation
  • CSR Visionary Award for Mrs. Madhu Jain
  • Top Five Recipients of Rajasthan's Prestigious Bhamashah Award