IIFL Finance Limited has informed the Exchange regarding a press release dated July 30, 2025, titled "IIFL Finance Q1FY26 Results update".
IIFL · price
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Awaiting price reaction for this filing.
IIFL Finance reported a consolidated profit after tax of Rs 274 Cr for Q1FY26, up 9% quarter-on-quarter, driven by a strong recovery in its gold loan business. Loan assets under management rose 7% QoQ and 21% YoY to Rs 83,889 Cr, while pre-provision operating profit jumped 28% QoQ to Rs 836 Cr. Gold loan AUM surged 85% YoY and 30% QoQ to Rs 27,274 Cr, surpassing the peak seen before the RBI embargo in March 2024. Microfinance continued to face headwinds, with AUM falling 26% YoY to Rs 8,916 Cr, and MSME loans slipped 2% QoQ as the company recalibrated toward lower-risk secured lending. Asset quality remained broadly stable with GNPA at 2.3% and NNPA at 1.1%, while cost-to-income ratio improved sharply by 900 basis points QoQ to 48%. The company also received RBI approval to open 510 new branches (500 pan-India and 10 in Jammu & Kashmir) and added former RBI Deputy Governor B.P. Kanungo to its board.
Positive for the stock — gold loan recovery is now complete and is the key growth driver, supported by improved margins and a sharp drop in cost-to-income. Microfinance and unsecured MSME remain under stress, but management's conservative provisioning (91% PCR) and product recalibration limit downside risk. Branch expansion approval and a stronger board add to the positive medium-term outlook.