IIFL Finance (IIFL) Q2 26/27 earnings summary

Executive summary

• Consolidated loan AUM reached INR 124,268 crore, up 38% YoY and 8% QoQ; Q2 PAT before NCI was INR 805.01 crore, up 92% YoY and 13% QoQ.

• Strategy emphasizes secured priority-sector lending, capital-efficient growth, asset-quality discipline and AI-enabled operations; secured loans were ~90% of AUM.

Financial highlights

• Q2 consolidated total income was INR 2,339.6 crore in the operating presentation; PPOP was INR 1,355.1 crore and PAT after NCI was INR 766.4 crore.

• Q2 consolidated financial-statement total income was INR 4,248.21 crore versus INR 3,309.16 crore YoY; net profit after tax was INR 805.01 crore versus INR 417.94 crore.

• H1 consolidated PAT before NCI was INR 1,518.14 crore, up 119% YoY; PAT after NCI rose 136% to INR 1,441.5 crore. H1 provisions declined 43% YoY to INR 575 crore.

• Standalone Q2 PAT rose 17% QoQ to INR 548.53 crore; standalone H1 PAT was INR 1,015.64 crore, up 196% YoY.

Outlook and guidance

• FY27 targets include ~25% AUM growth, credit costs of 1.5%-1.7%, ROA of 3.1%-3.3% and ROE of 16%-20%; ROE depends on the equity-raise amount. Management said it was on track and could exceed guidance.

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

• Home Finance targets 18%-20% FY AUM growth and 16%-18% next-year ROE; gold-loan momentum is expected to continue in H2 if gold prices stay within ±10% and economic conditions hold.