IIFL Finance Limited Earnings Summary — Q4 FY2026
IIFL Finance Stages Strong Recovery with Record Quarterly Revenue and Robust Asset Quality
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 7 consecutive quarters.
- Revenue of ₹3,919 Cr is 32.7% higher year-on-year.
- Revenue has compounded at 15.1% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹675 Cr is 189.3% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 34.5% annualised across the period.
- Operating margin stands at 69.1% in Q1 FY2027.
- Operating margin expanded by 1201 bps year-on-year.
- Over the last two years operating margin has expanded by 1142 bps.
- PBT margin is 23.7%.
- Expense growth of -4.4% remained below revenue growth of 32.7%.
- Operating profit of ₹2,708 Cr is 60.7% higher year-on-year.
- Operating leverage continues to improve.
- 5 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 85/100 (Excellent) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 3,919 | 3,693 | 3,427 | 3,305 | 2,953 | 2,591 | 2,443 | 2,556 | 2,621 | 2,854 |
| Expenses | Stable | 1,211 | 1,194 | 1,280 | 1,323 | 1,267 | 1,065 | 1,307 | 1,105 | 1,109 | 1,255 |
| Operating Profit | Improving | 2,708 | 2,499 | 2,147 | 1,982 | 1,686 | 1,526 | 1,136 | 1,451 | 1,512 | 1,599 |
| Operating Margin | Stable | 69.1% | 67.7% | 62.6% | 60.0% | 57.1% | 58.9% | 46.5% | 56.8% | 57.7% | 56.0% |
| Other Income | Volatile | 3 | 7 | 5 | 4 | 6 | 3 | 6 | -582 | 12 | 68 |
| Interest | Improving | 1,719 | 1,610 | 1,437 | 1,382 | 1,289 | 1,169 | 996 | 963 | 1,042 | 1,063 |
| Depreciation | Stable | 63 | 64 | 53 | 47 | 47 | 51 | 46 | 46 | 46 | 51 |
| Profit Before Tax | Volatile | 929 | 833 | 663 | 557 | 356 | 309 | 101 | -140 | 436 | 554 |
| Tax | Volatile | 216 | 209 | 162 | 139 | 82 | 58 | 19 | -47 | 98 | 123 |
| Net Profit | Volatile | 675 | 587 | 464 | 376 | 233 | 208 | 41 | -158 | 288 | 373 |
| Net Margin | Volatile | 17.2% | 15.9% | 13.6% | 11.4% | 7.9% | 8.0% | 1.7% | -6.2% | 11.0% | 13.1% |
Key Takeaways
- Delivered record quarterly revenue of ₹3,692 Cr, up 42% YoY, supported by expansion in retail asset books.
- Profitability rebounded sharply with Net Profit growing 148% YoY to ₹623 Cr after a volatile FY25.
- Asset quality showed significant improvement with Gross NPA falling to 1.46% from 2.23% YoY.
- Financing Margin recovered to 24%, nearing historical peaks and indicating stabilized credit costs.
- Net NPA reached a low of 0.73%, demonstrating disciplined collections and high-quality underwriting.
- Borrowings increased to ₹69,698 Cr by FY26 end, reflecting aggressive leverage to fund AUM growth.
- Earnings Per Share (EPS) for the quarter stood at ₹13.80, a substantial increase from ₹4.89 YoY.
Management Guidance
Management is pivoting toward a retail-first strategy focusing on ticket sizes under ₹1 Crore, which now constitutes 98% of the AUM. The outlook emphasizes digital transformation through fintech acquisitions to lower the high fixed-cost base of their branch network.
Sentiment Shift
Improving
The company has successfully moved past the regulatory and margin pressures of FY25, showing four consecutive quarters of profit and margin expansion.
Outlook
IIFL Finance is positioned as an 'Emerging Compounder' with a projected recovery in ROE to 13% in FY26. While the business model remains operationally intensive, the diversification into Gold and MSME loans provides a resilient yield profile despite regulatory sensitivities.
From the Annual Report (Key Quotes)
“Strategic flexibility demonstrated by pivoting business model from brokerage to lending.”
“The balance sheet exhibits high leverage typical of NBFCs, but the recent recovery in ROE highlights improved execution.”
“Maintaining high transparency through frequent earning calls and detailed investor presentations.”
Official Quarterly Documents
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This summary is AI-generated from IIFL Finance Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.