IIFL Capital Services Limited has informed the Exchange about Transcript
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IIFL Capital Services reported Q1 FY26 consolidated revenue of Rs.680 crore, up 19% quarter-on-quarter but only 6% year-on-year. Profit after tax rose 37% QoQ to Rs.176 crore, though it declined 4% YoY from Rs.182 crore. Institutional and investment banking revenue nearly doubled sequentially, while retail brokerage fell 28% YoY due to December 2024 regulatory changes reducing weekly expiry dates. The company is actively transforming its legacy retail broking business into a wealth management practice, having added about 50 relationship managers and planning to scale to 75-100 this year. Management indicated cost-to-income ratio on the non-institutional side will stay elevated at around 75% this fiscal, with scale benefits expected only from next year. Investment banking pipeline was described as 'quite strong' with optimism on closures for the full year.
Near-term margins will be under pressure as the company invests in building its wealth management franchise, but the strong investment banking pipeline and growing distribution AUM (Rs.35,700 crore) offer a credible growth path. The YoY decline in retail broking revenue remains a structural headwind, though market share in cash segment held steady at 2.57%.