IIFL Capital Services Limited has disseminated the transcript for its Q3 FY ’26 Earnings Conference Call held on February 11, 2026. Management detailed a challenging but resilient macroeconomic environment in India, noting the economy’s durability despite global uncertainties. Key financial highlights showed consolidated operational revenues flat at INR 586 crores QoQ. The company also provided updates on employee costs, taxation matters, and wealth management business projections.
Q3 FY ’26 Performance Overview
IIFL Capital Services Limited presented its performance for the third quarter of the financial year 2026, noting that the Indian economy remains resilient, supported by coordinated fiscal and monetary policies. Management reported consolidated operational revenues of INR 586 crores for the quarter, described as virtually flat both quarter-on-quarter (QoQ) and year-on-year (YoY).
Segmental Revenue Details (QoQ)
Drilling down into segment performance on a QoQ basis:
- Retail Broking income rose by 6% to INR 288 crores, driven by increased volumes.
- Institutional and investment banking revenues saw a 14% decrease to INR 160 crores (down from INR 186 crores in Q2 FY ’26).
- Financial product distribution income grew by 3% to INR 134 crores (up from INR 130 crores).
Expense Movement and Profitability
Expenses saw notable increases:
- Employee cost increased to INR 175 crores from INR 154 crores in the previous quarter, attributed to variable pay provisioning and a one-time INR 7 crore charge related to labor law changes.
- Depreciation rose by 13% due to branch investments.
- Fees and commissioning expenses increased by 10% due to higher payouts, reaching INR 130 crores.
- Operational profit before tax (PBT) was INR 119 crores, marking a 27% decline QoQ, primarily due to rising expenses.
However, the operational PBT was significantly bolstered by Other Income of INR 135 crores, which included an approximate INR 90 crore gain from the sale of real estate property and mark-to-market gains on BSE shares.
YoY Comparisons and Turnover Metrics
Comparing to Q3 FY ’25:
- Retail Equities volume was down 3%.
- FPD income increased by 25%.
- Employee costs were up 17% YoY, reaching INR 175 crores.
- Operational PBT (before mark-to-market) declined by almost 36% YoY due to increased expenses.
Average daily turnover for the quarter stood at INR 3,14,660 crores in Futures & Options (F&O) and cash segments combined.
Wealth Management and Taxation Updates
Regarding the wealth management practice, management indicated that while the business is currently loss-making, they expect to be closer to break-even by next year. The firm noted challenges in recruitment, currently maintaining about 470 RMs across combined wealth and Private Client Groups, with plans to add 10-15 more RMs in the near term.
Concerning tax matters stemming from the January 2025 search proceedings, the company has paid an ad hoc tax of approximately INR 27 crores this quarter as a prior year adjustment. Management believes, based on current facts, there is no material adverse effect on the financial position requiring further material adjustments.
Source: BSE
