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What is the story about?
NBFC providing gold loans and business loans, IIFL Finance Ltd, said on Tuesday (May 12), that it has received an income tax order raising a demand of ₹475.56 crore for the block period from April 1, 2018, to February 3, 2025.
The order was passed by the Joint Commissioner of Income Tax (OSD), Central Circle 4(4), Mumbai. The assessment order was received on May 12, 2026, the company said.
IIFL Finance stated that it believes it has duly discharged all applicable tax liabilities and has adequate factual and legal grounds to support its position. It added that it does not expect any material impact on its financials or operations due to the order.
Also Read: IIFL Finance shares fall 9%, most in three months, turns negative for April
The company is evaluating available options and will pursue appeals against the order under applicable laws.
Fourth Quarter Results
IIFL Finance's net profit rose sharply to ₹586.8 crore from ₹207.7 crore a year ago. Revenue grew 42.5% year-on-year to ₹3,693 crore compared to ₹2,591.2 crore. Asset quality showed improvement during the quarter, with gross NPAs easing to 1.5%, down 14 basis points sequentially, while net NPAs stood at 0.7%, down 2 basis points QoQ.
Gold loans emerged as the key growth driver, with AUM surging to ₹52,581 crore, up 150% year-on-year and 21% quarter-on-quarter, while maintaining strong asset quality with GNPA at 0.35%. The home finance segment also remained stable, with AUM at ₹40,075 crore and GNPA improving to 1.2%.
The company added that it has “significantly strengthened our balance sheet, improved asset quality, and built a scalable operating model anchored in AI and co-lending partnerships,” and remains well positioned for “sustainable, high-quality growth” in FY27.
Also Read: IIFL Finance shares gain after strong Q4; check price target revisions
Shares of IIFL Finance Ltd ended at ₹445.05, down by ₹17.85, or 3.86%, on the BSE.
The order was passed by the Joint Commissioner of Income Tax (OSD), Central Circle 4(4), Mumbai. The assessment order was received on May 12, 2026, the company said.
IIFL Finance stated that it believes it has duly discharged all applicable tax liabilities and has adequate factual and legal grounds to support its position. It added that it does not expect any material impact on its financials or operations due to the order.
Also Read: IIFL Finance shares fall 9%, most in three months, turns negative for April
The company is evaluating available options and will pursue appeals against the order under applicable laws.
Fourth Quarter Results
IIFL Finance's net profit rose sharply to ₹586.8 crore from ₹207.7 crore a year ago. Revenue grew 42.5% year-on-year to ₹3,693 crore compared to ₹2,591.2 crore. Asset quality showed improvement during the quarter, with gross NPAs easing to 1.5%, down 14 basis points sequentially, while net NPAs stood at 0.7%, down 2 basis points QoQ.
Gold loans emerged as the key growth driver, with AUM surging to ₹52,581 crore, up 150% year-on-year and 21% quarter-on-quarter, while maintaining strong asset quality with GNPA at 0.35%. The home finance segment also remained stable, with AUM at ₹40,075 crore and GNPA improving to 1.2%.
The company added that it has “significantly strengthened our balance sheet, improved asset quality, and built a scalable operating model anchored in AI and co-lending partnerships,” and remains well positioned for “sustainable, high-quality growth” in FY27.
Also Read: IIFL Finance shares gain after strong Q4; check price target revisions
Shares of IIFL Finance Ltd ended at ₹445.05, down by ₹17.85, or 3.86%, on the BSE.
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