IIFL Finance (IIFL) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 and nine months results show strong growth, improved asset quality, and a strengthened balance sheet, with loan assets up 9.1% quarter-on-quarter, led by gold loans; total AUM at ₹98,336 crore.

• PAT (pre NCI) for Q3FY26 rose 20% YoY to ₹501.3 crore; nine months 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.

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

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 9.1% QoQ to ₹98,336 crore, with gold loan AUM at ₹43,432 crore.

• Basic EPS at ₹10.92 for Q3 FY26; book value per share at ₹306.85.

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

Outlook and guidance

• Expecting 20%-25% AUM growth in FY27, with home loans targeted to grow 15%-16% and disbursements 24%-25%.

• Gold loan portfolio expected to maintain strong growth if gold prices remain stable.

• Credit costs guided to decline to below 2% next year, from current 2.5%.

• Internal ROE target of 18%-20% in the next two to three years.

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