IIFL Finance (IIFL) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 saw strong 9.1% QoQ loan AUM growth to ₹98,336 crore, led by gold loans, with robust asset quality improvements and a strengthened balance sheet.

• PAT (pre NCI) for Q3 FY26 was ₹501.35 crore, up 20% YoY; 9MFY26 PAT at ₹1,193.5 crore, up 265% YoY.

• Exited high-risk segments, focusing on gold and mortgage lending, and implemented AI-led risk systems.

• Interim dividend of ₹4 per share declared, with record date set for January 29, 2026.

• Unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2025, were approved and reviewed with an unmodified auditor conclusion.

Financial highlights

• Consolidated profit after tax before non-controlling interest was ₹501.35 crore for Q3 FY26; nine months: ₹1,193.46 crore.

• Pre-provision operating profit reached ₹1,075 crore, up 101% YoY and 4% QoQ.

• Consolidated AUM grew 38% YoY and 9% QoQ to ₹98,336 crore, with gold loan AUM at ₹43,432 crore.

• Book value per share increased 9% YoY to ₹306.8; EPS (basic) at ₹10.9 for Q3 FY26.

• Cost to income ratio at 46.4%; opex to AUM at 3.9%.

Outlook and guidance

• S&P reaffirmed the rating and revised the outlook to positive.

• Expecting 20%-25% overall AUM growth for FY27, with housing book targeted to grow 15%-16% and disbursements 24%-25%.

• Credit cost guidance for next year is below 2%, with further improvement expected quarter-on-quarter.

• Internal ROE target is 18%-20% over the next two to three years.

• Company continues to monitor regulatory changes and cooperate with authorities on ongoing tax matters.