IIFL Finance announced robust financial results for the second quarter of FY27, with consolidated profit after tax reaching ₹805 crore, crossing the ₹800 crore milestone for the first time. Assets Under Management (AUM) grew by 38% year-on-year to ₹1.24 lakh crore. The company also highlighted improved asset quality and a strong liquidity position of ₹13,805 crore.
IIFL Finance Reports Record Q2 FY27 Performance
IIFL Finance Limited has declared its financial results for the second quarter and half year ended September 30, 2026, showcasing significant growth and profitability. The company’s consolidated profit after tax (PAT) reached an all-time high of ₹805 crore for the quarter, marking a 13% sequential growth and an impressive 93% year-on-year increase. This milestone signifies the company’s robust financial performance and strategic execution.
Key Financial Highlights
Assets Under Management (AUM) Surge
The consolidated loan Assets Under Management (AUM) for IIFL Finance crossed the landmark figure of ₹1.24 lakh crore. This represents a substantial year-on-year growth of 38% and a sequential growth of 8% quarter-on-quarter. The core businesses, including Gold Loans, Home Loans, MSME Loans, and Microfinance, now constitute approximately 97% of the total portfolio and have seen a collective growth of 43% year-on-year.
Profitability and Asset Quality
Consolidated profit after tax (PAT) on a basis including non-controlling interest stood at ₹805 crore, demonstrating a healthy 13% quarter-on-quarter increase. For the half year, the PAT aggregated to approximately ₹1,518 crore. The company maintained a strong focus on asset quality, with Gross Non-Performing Assets (NPAs) improving to around 1.5%. Return on Equity (ROE) on a consolidated basis has exceeded the target of 20%.
Liquidity and Capital Adequacy
IIFL Finance maintained a strong liquidity position, with cash and undrawn credit lines totaling ₹13,805 crore, providing adequate coverage for near-term liabilities and supporting future growth. The consolidated capital adequacy ratio stood robust at 23.5%.
Strategic Pillars for Growth
The company’s strategy remains focused on resilient, capital-efficient growth, underpinned by six key pillars:
- Secured Lending: Now accounts for 90% of the total AUM.
- Capital-Light Growth: Off-book AUM represents 34% of total loan assets, supported by 18 banking partners.
- Funding and Liquidity: Fitch upgraded the rating to BB-, and the company raised $300 million via a social bond. Liquidity is at an all-time high of over ₹13,000 crore.
- Artificial Intelligence (AI): Advanced projects in audit and collection are yielding significant productivity improvements.
- Branch-Led Distribution: Over 5,000 branches primarily serve underserved customers.
- Credit and Cost Discipline: Focus on reducing credit and operating costs relative to loan assets.
Segment Performance
IIFL Finance Standalone
The standalone loan AUM grew by 11% quarter-on-quarter to ₹70,382 crore, with 97% secured. Net interest income saw a healthy 21% sequential increase, and profit after tax rose by 17% to ₹548.5 crore. Standalone Gross NPA stood at 1.3%, with a capital adequacy ratio of 17.03%.
IIFL Home Finance
The AUM increased by 4% sequentially to ₹43,070 crore. Disbursements grew by 10% to ₹3,498 crore. Profit after tax was stable at ₹188.7 crore, and Gross NPA improved to 1.38%.
Samasta Finance
AUM remained stable at ₹10,816 crore. Gross NPA improved by 46 basis points to 2.82%, and PAT increased by 13% sequentially to ₹69 crore.
Outlook
IIFL Finance expressed confidence in maintaining its growth momentum through FY27, with a continued focus on asset quality and capital efficiency. The company expects to continue its trajectory of resilient growth, supported by its strategic initiatives and strong market positioning.
Source: BSE
