IIFL Finance (IIFL) Q2 26/27 Investor call earnings summary

Executive summary

• Q2FY27 consolidated loan AUM reached ₹1,24,268 Cr, up 8% QoQ and 38% YoY; gold loans were 52.9% of AUM, supporting the focus on secured lending.

• Consolidated PAT pre-NCI was ₹805.01 Cr, up 93% YoY; PAT post-NCI was ₹766.4 Cr, up 104% YoY.

• Joint statutory auditors issued unmodified limited-review conclusions on the standalone and consolidated results.

Financial highlights

• Consolidated NII rose 13% QoQ to ₹1,480 Cr; total income was ₹2,339.6 Cr, up 23% YoY, and loan-loss provisions fell 5% QoQ to ₹281 Cr.

• Consolidated Q2 PPOP was ₹1,355.1 Cr, up 8% QoQ and 31% YoY; PBT was ₹1,073.7 Cr, up 16% QoQ and 93% YoY.

• H1FY27 consolidated PAT pre-NCI was ₹1,518.14 Cr versus ₹692.11 Cr; PAT post-NCI was ₹1,441.5 Cr, up 136% YoY.

• Consolidated Q2 revenue from operations was ₹4,246.45 Cr versus ₹3,305.11 Cr YoY; basic EPS was ₹18.00 versus ₹8.86.

• Standalone AUM rose 11% QoQ to ₹70,382 Cr; PAT was ₹548.53 Cr, up 17% QoQ, and H1FY27 PAT was ₹1,016 Cr.

Outlook and guidance

• FY27 targets: ~25% ROE, 16–20% AUM growth, 1.5–1.7% credit costs and 3.1–3.3% ROA; equity raise amount may affect targets.

• FY28–FY30 targets: ~20% AUM CAGR, 1.0–1.2% credit costs, 3.6–3.8% ROA, 18–20% ROE and ~40% off-book loan assets.

• Equity raise aims to lift standalone capital adequacy from 17% to above 20%; target completion by Dec. 31, 2026.

• Credit costs expected within FY guidance despite potential modest delinquency increases; offshore funding not planned near term while hedged costs exceed local funding costs.