IIFL Finance Q3 FY26 Earnings Results: Profit Jumps 20% QoQ to ₹501 Crore

IIFL Finance reported a consolidated profit after tax of ₹501 crore for the quarter ended December 31, 2025, marking a 20% rise quarter-on-quarter. This reflects a steady rebound driven by better asset quality and focused lending.

Asset Quality Improves Sharply

The company reported a significant improvement in asset quality, with gross NPAs declining from 2.14% to 1.60%. This improvement came after exiting high-risk segments and refocusing on secured lending. Provision coverage ratio stood strong at 92%.

Gold Loans Drive AUM Growth

IIFL Finance’s consolidated assets under management (AUM) grew 9% quarter-on-quarter to ₹98,336 crore. Gold loans led this growth, becoming the largest contributor to the loan mix after full normalisation post the September 2024 embargo.

Interim Dividend Announced

The Board approved an interim dividend of ₹4 per share, translating to a 200% payout, rewarding shareholders amid improved profitability and balance sheet strength.

Key Financial Metrics At A Glance

The company reported a return on assets (ROA) of 2.1% and return on equity (ROE) of 11.3%. Capital adequacy remained strong with a consolidated CRAR of 27.7%. Liquidity stood healthy at ₹9,433 crore, while PAT for the nine-month period reached ₹1,193 crore.

Business Segment Performance

Gold loan AUM surged 189% year-on-year and 26% quarter-on-quarter to ₹43,432 crore. MSME loans grew 17% YoY to ₹10,081 crore, supported by a shift towards secured lending. Home loan AUM rose 5% YoY to ₹31,893 crore, while microfinance AUM declined due to stress in unsecured lending.

Management Commentary

Founder and MD Mr Nirmal Jain said the quarter marks a shift from stabilisation to sustainable growth, supported by disciplined portfolio restructuring, AI-led risk systems, and strong capital buffers.

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IIFL Finance Share Price Movement

IIFL Finance share price (NSE: IIFL) were trading at ₹573.10 on the NSE at 2:38 pm on January 22, down ₹49.75 or 7.99% for the day. The stock opened sharply lower at ₹633.80, touched an intraday high of ₹637.00, and slipped to a low of ₹566.10. The stock’s 52-week high stands at ₹675.00, while its 52-week low is ₹279.80.

Conclusion

IIFL Finance delivered a strong Q3FY26 with higher profits, improved asset quality, robust gold loan growth, and a shareholder-friendly dividend. With a secured lending focus and positive rating outlook, the company is positioned for stable and scalable growth ahead.

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