IIFL Finance (IIFL) Q1 25/26 earnings summary

Executive summary

• Consolidated profit after tax before controlling interest was INR 274 crore, up 9% quarter-on-quarter but down 19% year-over-year, reflecting recovery from last year's gold embargo.

• Achieved consolidated AUM of ₹83,889 Cr, up 7% sequentially and 21% year-over-year, with gold loan business fully recovered post-RBI embargo and asset quality and yield improved.

• Strategic focus on retail, secured lending to small businesses and homes, with MSME lending as a key growth engine.

• Leadership and governance have been strengthened, with new board members and a focus on compliance and innovation, including key senior management changes.

• Board approved unaudited consolidated and standalone financial results for the quarter ended June 30, 2025, with limited review by joint statutory auditors and unmodified conclusions issued.

Financial highlights

• Consolidated total income for Q1 FY26 was ₹2,959.30 crore, up from ₹2,633.01 crore in Q1 FY25 and ₹2,594.35 crore in Q4 FY25.

• Pre-provision operating profit reached INR 836 crore, up 28% sequentially but down 31% year-over-year.

• Loan AUM grew 21% year-over-year and 7% quarter-on-quarter, led by a strong rebound in gold loans.

• Non-fund based income surged 74% year-over-year to ₹661 Cr.

• Loan losses and provisions rose 104% year-over-year to ₹513 Cr.

• Basic EPS (consolidated) for Q1 FY26 was ₹5.49, compared to ₹4.89 in Q1 FY25.

Outlook and guidance

• AUM growth guidance for the year is 15–18% overall, with home loans expected to grow at a similar pace.

• Approval received for 500 new branches, supporting continued growth momentum in gold loans.

• MSME lending identified as a major growth driver, leveraging digital underwriting and co-lending partnerships.

• Credit cost for the full year expected to moderate to around 3%, after a higher first quarter.

• Margins expected to improve in the second half as interest reversals reduce and asset quality stabilizes.