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What is the story about?
Leading non-bank lender IIFL Finance Ltd on Wednesday (July 22) reported a 189.3% year-on-year rise in consolidated net profit to ₹675.1 crore for the first quarter, compared with ₹233.4 crore in the corresponding period last year.
Net interest income (NII) increased 54.8% to ₹2,003.9 crore from ₹1,294.7 crore a year earlier, while provisions declined to ₹294.2 crore from ₹512.5 crore. On a pre-non-controlling interest (pre-NCI) basis, profit after tax (PAT) stood at ₹713.1 crore, up 160% year-on-year and 14% quarter-on-quarter.
Total income for the quarter rose 34% year-on-year to ₹2,202.4 crore, while pre-provision operating profit increased 50% to ₹1,252.4 crore. Profit before tax climbed 161% to ₹928.6 crore.
ALSO READ | IIFL Finance plans ₹10,000 crore fund raise; board also ups borrowing limits
Consolidated assets under management (AUM) stood at ₹1,15,523 crore, rising 38% year-on-year and 7% quarter-on-quarter. Gross non-performing assets (GNPA) stood at 1.6%, up 9 basis points sequentially, while net non-performing assets (NNPA) were 0.8%, also up 9 basis points quarter-on-quarter. The provision coverage ratio improved to 94%.
Book value stood at ₹333.9, while return on assets (RoA) was 3.1% and return on equity (RoE) came in at 19.5%. The company reported a liquidity position of ₹7,148 crore and a consolidated capital to risk-weighted assets ratio (CRAR) of 24.3%.
Among business segments, the gold loan portfolio remained the biggest growth driver, with AUM rising 114% year-on-year and 11% quarter-on-quarter to ₹58,406 crore. Gross non-performing assets in the segment stood at 0.61%.
ALSO READ | IIFL Finance shares fall 9%, most in three months, turns negative for April
Home finance AUM increased 4% sequentially to ₹41,540 crore, with gross non-performing assets at 1.46%. The MSME loan portfolio grew 9% quarter-on-quarter to ₹10,808 crore as the company continued its shift toward secured MSME lending while reducing unsecured exposure.
The microfinance portfolio stood at ₹9,473 crore, up 4% quarter-on-quarter, with the company reporting continued portfolio stabilisation and improving asset quality.
The company said cumulative direct assignment and co-lending originations reached ₹1.55 lakh crore since FY14 through Q4FY26, with zero losses reported in co-lent portfolios.
Looking ahead, IIFL Finance said it is targeting around 25% AUM growth in FY27, return on assets of 3.1%-3.3%, return on equity of 16%-20%, and an off-book mix of 35%-40%. Its focus areas include scaling secured lending businesses, expanding co-lending partnerships with banks, a proposed equity raise, and maintaining asset quality and capital discipline.
ALSO READ | IIFL Finance Q4 profit nearly triples, powered by booming gold loans and better asset quality
Vikas Jain, CFO, IIFL Finance said, "It is an exciting time to join IIFL Finance, and Q1FY27 reflects the strength of the platform I am stepping into - PAT up 14% QoQ and Pre-Provision Operating Profit up 7% QoQ, even as we continue to invest in growth, reflecting disciplined cost management and improving operating leverage.
During the quarter, we also strengthened our global funding franchise with a US$500 million social bonds issuance and received a Ba3 (stable) rating from Moody’s. I look forward to building on this strong foundation and bringing continued rigour to our cost discipline and capital planning as we grow through FY27."
Shares of IIFL Finance Ltd ended at ₹566.55, down by ₹5.55, or 0.97%, on the BSE.
Net interest income (NII) increased 54.8% to ₹2,003.9 crore from ₹1,294.7 crore a year earlier, while provisions declined to ₹294.2 crore from ₹512.5 crore. On a pre-non-controlling interest (pre-NCI) basis, profit after tax (PAT) stood at ₹713.1 crore, up 160% year-on-year and 14% quarter-on-quarter.
Total income for the quarter rose 34% year-on-year to ₹2,202.4 crore, while pre-provision operating profit increased 50% to ₹1,252.4 crore. Profit before tax climbed 161% to ₹928.6 crore.
ALSO READ | IIFL Finance plans ₹10,000 crore fund raise; board also ups borrowing limits
Consolidated assets under management (AUM) stood at ₹1,15,523 crore, rising 38% year-on-year and 7% quarter-on-quarter. Gross non-performing assets (GNPA) stood at 1.6%, up 9 basis points sequentially, while net non-performing assets (NNPA) were 0.8%, also up 9 basis points quarter-on-quarter. The provision coverage ratio improved to 94%.
Book value stood at ₹333.9, while return on assets (RoA) was 3.1% and return on equity (RoE) came in at 19.5%. The company reported a liquidity position of ₹7,148 crore and a consolidated capital to risk-weighted assets ratio (CRAR) of 24.3%.
Among business segments, the gold loan portfolio remained the biggest growth driver, with AUM rising 114% year-on-year and 11% quarter-on-quarter to ₹58,406 crore. Gross non-performing assets in the segment stood at 0.61%.
ALSO READ | IIFL Finance shares fall 9%, most in three months, turns negative for April
Home finance AUM increased 4% sequentially to ₹41,540 crore, with gross non-performing assets at 1.46%. The MSME loan portfolio grew 9% quarter-on-quarter to ₹10,808 crore as the company continued its shift toward secured MSME lending while reducing unsecured exposure.
The microfinance portfolio stood at ₹9,473 crore, up 4% quarter-on-quarter, with the company reporting continued portfolio stabilisation and improving asset quality.
The company said cumulative direct assignment and co-lending originations reached ₹1.55 lakh crore since FY14 through Q4FY26, with zero losses reported in co-lent portfolios.
Looking ahead, IIFL Finance said it is targeting around 25% AUM growth in FY27, return on assets of 3.1%-3.3%, return on equity of 16%-20%, and an off-book mix of 35%-40%. Its focus areas include scaling secured lending businesses, expanding co-lending partnerships with banks, a proposed equity raise, and maintaining asset quality and capital discipline.
ALSO READ | IIFL Finance Q4 profit nearly triples, powered by booming gold loans and better asset quality
Vikas Jain, CFO, IIFL Finance said, "It is an exciting time to join IIFL Finance, and Q1FY27 reflects the strength of the platform I am stepping into - PAT up 14% QoQ and Pre-Provision Operating Profit up 7% QoQ, even as we continue to invest in growth, reflecting disciplined cost management and improving operating leverage.
During the quarter, we also strengthened our global funding franchise with a US$500 million social bonds issuance and received a Ba3 (stable) rating from Moody’s. I look forward to building on this strong foundation and bringing continued rigour to our cost discipline and capital planning as we grow through FY27."
Shares of IIFL Finance Ltd ended at ₹566.55, down by ₹5.55, or 0.97%, on the BSE.
