IIFL Finance Limited has informed the Exchange about Transcript
IIFL · price
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IIFL Finance reported a consolidated Q1 FY26 PAT of Rs.274 crore, up 9% QoQ but down 19% YoY due to base effect from last year's gold loan embargo. Pre-provision operating profit rose 28% QoQ to Rs.836 crore. Loan AUM grew 21% YoY to Rs.83,889 crore, led by gold loans reaching an all-time high of Rs.27,274 crore (up 85% YoY), surpassing pre-embargo levels. Gross NPA stood at 2.3% and net NPA at 1.1%, with stress concentrated in microfinance and unsecured MSME segments, particularly in Andhra Pradesh and Maharashtra. Management has discontinued new disbursements in unsecured MSME and micro-LAP (~5% of book) and guided for full-year credit cost of ~3% (vs earlier 2.5%-2.7%), ROA around 3%, and consolidated AUM growth of ~20%. Consolidated capital adequacy remains strong at 28.4%, with net gearing at 3.4x and Rs.7,367 crore in cash.
Mixed signals for shareholders: strong recovery in gold loans and stable margins in core segments are positives, but elevated credit costs from MSME and microfinance stress, along with QoQ margin compression from interest reversals, may keep near-term profitability under pressure. The reaffirmed ROA and AUM growth guidance, plus the target to bring GNPA below 2% by year-end, suggest confidence in a H2 recovery.