IIFL Capital Services (IIFLCAPS) Q3 25/26 earnings summary

Executive summary

• Q3FY26 revenue from operations was ₹58,628 lakh, up 1% YoY; total revenue was ₹72,050 lakh and PAT was ₹18,785 lakh, down 5%.

• Operating profit before tax was ₹1,194 Mn, down 36% YoY; operational PBT before mark-to-market fell 27% QoQ and 35% YoY, mainly on higher expenses.

• Other income included a property-sale gain of ₹8,968 lakh; the Board declared a ₹3/share interim dividend and approved a proposed DIFC subsidiary and exploration of real-estate monetization.

Financial highlights

• Q3 total expenses rose 18% YoY to ₹4,663 Mn; employee costs increased 17% to ₹1,748 Mn and administration and other expenses rose 29% to ₹911 Mn.

• Q3 PBT was ₹2,542 lakh, up 2% YoY, including gains under MTM on investments and others; PAT was ₹18,785 lakh versus ₹19,723 lakh.

• 9MFY26 revenue was ₹1,94,831 lakh, PBT ₹60,168 lakh and PAT ₹44,852 lakh; PAT fell 23% YoY and operating PBT fell 29%.

• Employee costs included a one-time ₹71 Mn new-labour-code impact; fees and commissions rose 10% QoQ to ₹130 crore, while depreciation rose 13% QoQ to ₹17 crore.

• Administrative expenses were ₹91 crore, up 5% QoQ and nearly 30% YoY, with technology, branding and marketing costs contributing.

Outlook and guidance

• Wealth management remains loss-making amid continued investment; management expects it to be closer to break-even next year.

• A further 10–15 RMs were expected by FY26 year-end; wealth and PCG together had about 470 RMs, with recruitment paced by competition and hiring challenges.

• Investment banking pipeline remains strong, with mandates likely to execute over the next 4–6 quarters, subject to market conditions; 8 DRHPs were filed in Q3FY26.

• Distribution assets are expected to maintain a TBR-to-ARR mix near 60:40; the recent TBR increase reflected more fixed-income and NCD allocation.