IIFL Capital Services (IIFLCAPS) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 consolidated revenue was ₹68,039.50 lakh, up 6% YoY; PAT was ₹17,553.08 lakh, down 4% YoY.

• AUM and custody reached ₹2,440 Bn, up 10% YoY; net worth was ₹27 Bn, up 36% YoY.

• Retail broking is being reshaped into a wealth management and financial planning business, backed by hiring, technology and distribution capabilities.

• Board approved a new wholly owned GIFT City IFSC subsidiary and proposed transferring the PMS business to a wholly owned subsidiary, subject to regulatory approval.

Financial highlights

• Consolidated total revenue was ₹68,039.50 lakh versus ₹64,380.15 lakh YoY; revenue from operations was ₹61,736.67 lakh versus ₹63,991.94 lakh.

• Other income rose to ₹6,302.83 lakh from ₹388.21 lakh YoY, mainly on mark-to-market gains on investments, especially BSE shares.

• Total expenses rose 14% YoY to ₹4,529 Mn; PBT declined 8% to ₹2,275 Mn and PAT fell 4% to ₹1,755 Mn, up 37% QoQ.

• Employee costs increased to ₹176 crore from ₹163 crore QoQ and ₹130 crore YoY, reflecting higher headcount and variable-pay provisions.

• Consolidated basic/diluted EPS was ₹5.67/₹5.36 versus ₹5.94/₹5.77 YoY; quarterly EPS was not annualised.

Segment performance

• Institutional Equities and Investment Banking revenue was ₹2,037 Mn, up 5% YoY; research covered 311 stocks and 20+ sectors, representing over 73% of India’s market capitalisation.

• Capital markets revenue was ₹61,456.95 lakh and PBT ₹22,310.18 lakh, versus ₹57,715.88 lakh and ₹24,908.28 lakh YoY.

• Distribution AUM reached ₹357 Bn, up 23% YoY; mix was mutual funds 46%, fixed income 33%, PMS 11% and AIFs 10%.

• Retail brokerage rose 15% QoQ but fell 28% YoY, primarily reflecting regulatory changes effective December 2024, including fewer expiry days.

• Insurance broking and ancillary revenue was ₹5,881.15 lakh and PBT ₹300.48 lakh; Q1 insurance premium collected was ₹10 crore versus ₹23 crore in the prior quarter.