IIFL Finance Limited has informed the Exchange regarding a press release dated May 08, 2025, titled "Press Release on Audited Financial Results for the quarter and year ended March 31, 2025".
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Awaiting price reaction for this filing.
IIFL Finance reported a strong sequential recovery in Q4FY25 with consolidated profit after tax of ₹251 Cr, up 208% quarter-on-quarter, though still down 42% year-on-year, reflecting the aftermath of the RBI gold loan embargo. Loan assets under management rose 10% QoQ to ₹78,341 Cr, supported by a 40% QoQ rebound in gold loan AUM to ₹21,022 Cr after the embargo was lifted in September 2024, along with steady growth in home loans (₹31,588 Cr, +15% YoY) and MSME loans (₹14,185 Cr, +18% YoY). Asset quality improved with gross NPAs falling to 2.2% (down 19 bps QoQ) and net NPAs stable at 1.0%. For full year FY25, consolidated PAT stood at ₹378.8 Cr (post-NCI), sharply lower than ₹1,763.5 Cr in FY24 due to a one-time exceptional provision of ₹586.5 Cr linked to the embargo and standalone losses of ₹410 Cr. The company maintained a strong capital adequacy of 29%, a ₹5,216 Cr liquidity buffer, and raised $425 million via a dollar bond alongside ₹1,500 Cr in domestic NCDs to support growth.
The strong QoQ turnaround in profits and improving asset quality signal that IIFL Finance is firmly past the worst of the gold loan embargo crisis, while FY26 guidance of 25-30% growth in gold and MSME loans and an ROE target of ~16% points to meaningful earnings recovery ahead, which should be positive for the stock.