IIFL Finance Limited hereby submits Transcript of Earnings Call for the quarter and financial year ended March 31, 2025 held on May 09, 2025.
Awaiting price reaction for this filing.
IIFL Finance reported a strong recovery in Q4 FY25 after the RBI gold loan embargo impact, with consolidated PAT of INR 251 crores (up 208% QoQ but down 42% YoY). Loan AUM stood at INR 78,341 crores, up 10% sequentially, with gold loans growing 40% QoQ and MSME loans up 18% YoY. Asset quality improved with GNPA falling to 2.2% from 2.4%, and consolidated capital adequacy remained strong at 29%. The company raised INR 8,500 crores during the quarter including a USD 425 million dollar bond. Management guided for FY26 with ROA around 3%, interest spreads improving to 6.9–7% (from 6.7% in FY25), credit cost of 2.5–2.7%, MSME growth of 25–30%, and co-lending/DA returning to 40% of AUM by end of FY26. MFI credit cost is guided at ~5% for FY26.
Positive for shareholders — clear guidance on margin improvement, return to pre-embargo growth trajectory, and stronger asset quality signals a turnaround story. However, Tier 1 capital at the parent level is depleting with growth, raising potential equity raise concerns, and MFI segment still carries some residual stress.