IIFL Finance Ltd. reported a sharp rise in earnings for the quarter ended June 30, 2026 (Q1 FY27), with consolidated net profit nearly tripling year-on-year as higher net interest income, lower provisions and robust growth in its gold loan business boosted performance.
The non-banking financial company (NBFC) posted a 189.3% year-on-year increase in consolidated net profit to ₹675.1 crore, compared with ₹233.4 crore in the corresponding quarter last year. Investors tracking IIFL Finance shares in their demat account will also note the company's optimistic growth outlook for FY27.
IIFL Finance's Net Interest Income (NII) rose 54.8% YoY to ₹2,003.9 crore, up from ₹1,294.7 crore a year earlier.
The company's profitability was supported by a sharp decline in provisions, which fell to ₹294.2 crore from ₹512.5 crore in the year-ago period.
Other key highlights from the quarter include:
On a pre-non-controlling interest basis, profit after tax stood at ₹713.1 crore, rising 160% year-on-year.
IIFL Finance's Assets Under Management (AUM) grew 38% YoY to ₹1.16 lakh crore, led by strong momentum in the gold loan segment.
The gold loan portfolio expanded 114% year-on-year to ₹58,406 crore, making it the company's fastest-growing business. The segment also maintained healthy asset quality, with gross NPAs at 0.61%.
Meanwhile, the home finance portfolio rose to ₹41,540 crore, while the MSME loan book increased to ₹10,808 crore as the company continued to focus on secured lending.
Overall Gross NPA stood at 1.6%, while the Provision Coverage Ratio (PCR) improved to 94%.
Looking ahead, IIFL Finance is targeting around 25% AUM growth in FY27, with a Return on Assets (RoA) of 3.1%-3.3% and Return on Equity (RoE) of 16%-20%.
The company plans to strengthen its secured lending portfolio, expand co-lending partnerships with banks, maintain asset quality and pursue a proposed equity raise to support future growth.
Read more: IndusInd Bank Q1 Results: Net Profit Jumps 47% to ₹1,003 Crore.
IIFL Finance delivered a strong start to FY27, driven by robust earnings growth, expanding lending operations and continued strength in its gold loan business. While asset quality remained largely stable, the company's growth guidance and focus on secured lending will be closely watched by investors holding the stock in their demat account as the financial year progresses.
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Published on: Jul 22, 2026, 5:11 PM IST
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