IIFL Capital Services (IIFLCAPS) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 operating revenue was ₹57,208.26 lakh; consolidated total revenue was ₹54,741.71 lakh after negative other income. Reported PBT was ₹11,989.72 lakh and PAT ₹8,514.72 lakh.

• Operating PBT before other income and MTM was ₹1,640mn, down 20% YoY; PAT declined 59% YoY, with MTM losses weighing on reported results.

• Retail equities weakened amid F&O regulatory changes, while institutional equities and financial product distribution grew YoY; wealth assets and the MTF book expanded.

Financial highlights

• Q2 operating revenue was ₹5,916mn, down 4% QoQ and 8% YoY; H1 revenue was ₹12,089mn, down 6% YoY.

• Q2 PBT was ₹1,199.72 lakh and PAT ₹851.47 lakh; H1 PBT was ₹3,474 lakh and PAT ₹2,607 lakh, down 32% and 33% YoY.

• Q2 total expenses were ₹4,275mn, down 3% YoY; employee costs were ₹1,537mn, up 3%, and finance costs ₹533mn, up 12% YoY.

• Employee costs were ₹150 crore, down from ₹176 crore QoQ due to lower variable-pay provisions; administrative expenses were flat QoQ at ₹87 crore.

Outlook and guidance

• H2 FY26 is expected to benefit from policy stability, demand growth, lower GST rates, consumption and benign liquidity.

• Higher exchange volumes in H2 may support the cost-to-income ratio; continued wealth-business investment remains a FY26 cost headwind.

• Wealth management profitability is expected over 2–3 years; asset gathering and recurring-revenue assets are priorities, with no exact profit target provided.

• Investment banking mandates and pipeline were strong, with execution expected over 4–6 quarters subject to market conditions; 26 DRHPs were filed in Q2.