Leading non-bank lender IIFL Finance Ltd delivered exceptional first-quarter results with consolidated net profit surging 189.3% year-on-year to ₹675.1 crore, compared with ₹233.4 crore in the corresponding period last year. According to reports from CNBC TV18, the company's net interest income (NII) increased 54.8% to ₹2,003.9 crore from ₹1,294.7 crore a year earlier, while provisions declined significantly to ₹294.2 crore from ₹512.5 crore. On a pre-non-controlling interest basis, profit after tax stood at ₹713.1 crore, up 160% year-on-year and 14% quarter-on-quarter. The company's total income for Q1FY27 stood at ₹2,202.4 crore, up 34% year-on-year, driven by a 34% increase in net interest income to ₹1,310.5 crore. Pre-provision operating profit increased 50% YoY to ₹1,252.4 crore, with profit before tax climbing 161% to ₹928.6 crore. Latest data from Business Standard confirms sales rose 32.73% to ₹3,919.15 crore in the quarter ended June 2026, compared to ₹2,952.83 crore in the previous year, with operating profit margin improving to 69.1% from 57.09%.
The company's assets under management (AUM) reached ₹1,15,523 crore, rising 38% year-on-year and 7% quarter-on-quarter, demonstrating robust business expansion. As reported by CNBC TV18, gross non-performing assets (GNPA) stood at 1.55%, up 9 basis points sequentially from 1.46%, while net non-performing assets (NNPA) were 0.82%, also up 9 basis points quarter-on-quarter from 0.73%. The provision coverage ratio improved to 94%, indicating strengthened risk management. Book value stood at ₹333.9, while return on assets (RoA) was 3.1% and return on equity (RoE) came in at 19.5%. The capital to risk-weighted assets ratio (CRAR) remained healthy at 24.3%, providing strong capital adequacy. Latest financial metrics show PBDT increased 146% to ₹991.54 crore and PBT climbed 161% to ₹928.64 crore in the June 2026 quarter.
The gold loan portfolio emerged as the biggest growth driver, with AUM rising 114% year-on-year and 11% quarter-on-quarter to ₹58,406 crore, according to CNBC TV18. Gross non-performing assets in the segment stood at 0.61%, reflecting strong asset quality. The home finance AUM increased 4% sequentially to ₹41,540 crore, with gross non-performing assets at 1.46%. The MSME loan portfolio grew 9% quarter-on-quarter to ₹10,808 crore as the company continued its shift toward secured MSME lending while reducing unsecured exposure. The standalone net profit reached ₹467.1 crore for Q1FY27, up from ₹132.8 crore in the year-ago period, with standalone total income recorded at ₹1,307.8 crore.
The company reported a liquidity position of ₹7,148 crore and a consolidated capital to risk-weighted assets ratio (CRAR) of 24.3%, as reported by CNBC TV18. The microfinance portfolio stood at ₹9,473 crore, up 4% quarter-on-quarter, with the company reporting continued portfolio stabilisation and improving asset quality. Looking ahead, IIFL Finance is targeting around 25% AUM growth in FY27, return on assets of 3.1%-3.3%, return on equity of 16%-20%, and an off-book mix of 35%-40%. The company's focus areas include scaling secured lending businesses, expanding co-lending partnerships with banks, and maintaining asset quality and capital discipline. Mr. Vikas Jain joined as Chief Financial Officer, bringing over two decades of experience, and the board approved an enabling resolution for shareholders to raise equity capital.
Shares of IIFL Finance Ltd ended at ₹566.55, down by ₹5.55, or 0.97%, on the BSE, according to CNBC TV18. The company reported cumulative direct assignment and co-lending originations reached ₹1.55 lakh crore since FY14 through Q4FY26, with zero losses reported in co-lent portfolios. The company raised US$500 million through Social Bonds issuance and received a Ba3 issuer rating from Moody's with a stable outlook. The Joint Statutory Auditors, Sharp & Tannan Associates and G. M. Kapadia & Co., carried out a limited review of the results. Historical stock returns show 117.31% gains over one year and 6.32% returns over six months, indicating strong investor confidence despite recent quarterly performance.
