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Informist, Wednesday, Apr. 29, 2026

By Eshitva Prakash

MUMBAI – IIFL Finance Ltd.'s consolidated net profit more than doubled on year in the March quarter, owing to a sharp rise in its total income. The company's asset quality improved sequentially and its consolidated assets under management surged. Its revenue growth was healthy, helped by a net gain on de-recognition on financial instruments under fair value through other comprehensive income category.      

The non-banking financial company's net profit for the reporting quarter was INR 5.87 billion, more than twice its reported net profit of INR 2.08 billion in the year ago period. This was higher than the INR 5.34 billion net profit projected by Motilal Oswal Financial Services Ltd. Sequentially, the company's bottom line rose over 26%.

The company reported a consolidated total income of INR almost 37 billion for the March quarter, up nearly 43% on year. Its revenue from operations rose 36.93 billion, up 42.5% on year. This figure included a contribution of INR 2.05 billion of net gain on de-recognition on financial instruments under fair value through other comprehensive income category.  

The company's total expenses rose more than 25% on year and 3.5% on quarter to INR 28.67 billion. Expenses classified under 'other expenses' rose 42.5% on year to INR 3.12 billion. Employee benefits expenses rose to INR 5.42 billion, up a little over 16% on year. The company's high tax outgo in the quarter also weighed on its profitability. It reported a tax expense of INR 2.09 billion, up almost four-fold on year and nearly 30% sequentially. 

The company reported a net interest income of INR 11.64 billion on a consolidated basis, up 13% on year. This figure was supported by a 26% on-year growth in interest income to INR 27.73 billion, but a 38% jump in interest expense to INR 16.10 billion limited the company's interest income growth. 

IIFL Finance's consolidated assets under management rose 38% on year and 10% on quarter to INR 1.08 trillion. On a standalone basis, IIFL Finance's AUM was 576.04 billion on a standalone basis and IIFL Home Finance contributed 400.75 billion to the consolidated AUM. IIFL Samasta, a microfinance entity, reported an AUM of 105.1 billion. Gold loans were the most popular loans in the March quarter, rising 150% on year and 21% sequentially to contribute INR 525.81 billion to the total loan AUM.

The company's asset quality showed signs of improvement, with its gross non-performing assets declining 14 basis points on quarter to 1.46% and its net NPA improving 2 bps sequentially to 0.73%. Its provision coverage ratio was 93% as of Mar. 31 and the company had a liquidity position of INR 66.38 billion. 

For 2025-26 (Apr-Mar), the company reported a net profit of INR 16.61 billion, up four-fold on year. Its revenue rose to INR 133.51 billion, up 30.8% on year. On Wednesday, shares of the company ended over 2% higher at INR 447.05 on the National Stock Exchange.  End

Edited by Akul Nishant Akhoury

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