Net interest income (NII) surged by 54.8% to ₹2,003.9 crore from ₹1,294.7 crore in the previous year, while provisions decreased to ₹294.2 crore from ₹512.5 crore. On a pre-non-controlling interest (pre-NCI) basis, profit after tax (PAT) was ₹713.1 crore, marking a 160% year-on-year increase and a 14% rise from the previous quarter.
Total income for the quarter increased by 34% year-on-year, totaling ₹2,202.4 crore, and pre-provision operating profit rose by 50% to ₹1,252.4 crore. Profit before tax jumped by 161% to ₹928.6 crore.
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Consolidated assets under management (AUM) reached ₹1,15,523 crore, reflecting a 38% year-on-year increase and a 7% rise quarter-on-quarter. Gross non-performing assets (GNPA) stood at 1.6%, up 9 basis points sequentially, while net non-performing assets (NNPA) were 0.8%, also up by 9 basis points quarter-on-quarter. The provision coverage ratio improved to 94%.
Book value was ₹333.9, with return on assets (RoA) at 3.1% and return on equity (RoE) at 19.5%. The company reported a liquidity position of ₹7,148 crore and a consolidated capital to risk-weighted assets ratio (CRAR) of 24.3%.
Within business segments, the gold loan portfolio was the main driver of growth, with AUM climbing by 114% year-on-year and 11% quarter-on-quarter to ₹58,406 crore. Gross non-performing assets in this segment were 0.61%.
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The home finance AUM grew 4% sequentially to ₹41,540 crore, with gross non-performing assets at 1.46%. The MSME loan portfolio expanded by 9% quarter-on-quarter to ₹10,808 crore, as the company continued to focus on secured MSME lending and reduced unsecured exposure.
The microfinance portfolio totaled ₹9,473 crore, rising 4% quarter-on-quarter, as the company reported continued stabilization and improvement in asset quality.
The company announced that cumulative direct assignment and co-lending originations reached ₹1.55 lakh crore since FY14 through Q4FY26, without any losses reported in co-lent portfolios.
Looking forward, IIFL Finance targets around 25% AUM growth in FY27, return on assets between 3.1%-3.3%, return on equity from 16%-20%, and an off-book mix of 35%-40%. Key focus areas include scaling secured lending businesses, broadening co-lending partnerships with banks, a proposed equity raise, and ensuring asset quality and capital discipline.
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Vikas Jain, CFO of IIFL Finance, stated, “It’s an exciting time for IIFL Finance, and Q1FY27 showcases the robust platform I’m stepping into – PAT up 14% QoQ and Pre-Provision Operating Profit up 7% QoQ, even as we drive investment in growth, highlighting disciplined cost management and improved operating leverage.
During the quarter, we also bolstered our global funding franchise with a US$500 million social bonds issuance and received a Ba3 (stable) rating from Moody’s. I look forward to building on this strong foundation while maintaining rigorous cost discipline and capital planning as we progress through FY27.”
Shares of IIFL Finance Ltd closed at ₹566.55, down by ₹5.55, or 0.97%, on the BSE.
