IIFL Finance LimitedQ2 FY27 Results & Financial Update
IIFL Finance Limited: Q2 FY27 consolidated results and company financials – revenue ₹4,246.45 Cr, PAT ₹805.01 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Chart · Market context
IIFL Finance price & chart
Quarter overview
Quarterly earnings analysis
Management highlighted that assets under management crossed the ₹1,24,268 crore milestone during the quarter, representing a 38% year-on-year expansion. The secured portion of the asset book remained robust at 90%, supported by core franchises in gold and housing finance.
Operational efficiency and lower credit costs contributed to annualized return on equity exceeding 20% for the first half of FY27, alongside an annualized return on assets of 3.1%. The gross non-performing asset ratio stood at 1.5%.
Strategic adjustments during the period included moderating gold loan growth while anticipating stronger momentum in home loans and secured MSME lending. Leadership also emphasized ongoing risk framework enhancements, audit deepening, and compliance integration using advanced technologies.
On the expenditure side, finance costs stood at a significant INR 1,908.64 crore, reflecting the capital-intensive nature of wholesale borrowing required to sustain and expand the underlying retail lending portfolio. Depreciation and amortisation expenses for the quarter were reported at INR 63.36 crore.
01 · Business model
What does IIFL Finance do?
IIFL Finance Limited is a prominent retail-focused non-banking financial company (NBFC) in India that provides a comprehensive suite of financial products to underserved and unbanked customer segments. Its core lending portfolio encompasses gold loans, home loans, secured micro-small-and-medium-enterprise (MSME) financing, and microfinance through specialised subsidiaries.
The company operates an extensive distribution network across India, connecting semi-urban and rural borrowers to institutional credit channels. Its operating model heavily emphasizes secured retail lending, which constitutes the vast majority of its overall asset portfolio.
Revenue generation centers on interest income derived from its diversified retail loan book, supplemented by fee-based services and co-lending arrangements with major banking partners. The firm targets capital-efficient growth while maintaining strict risk controls and deep digital integration across its lending verticals.
02 · Historical context
What shaped the business before this quarter
Assets under management expanded to cross ₹1,24,268 crore by Q2 FY27, reflecting sustained prior multi-quarter growth across retail verticals.
The company built a secured lending mix accounting for 90% of total assets prior to and during the reporting periods.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q2 FY27 |
|---|---|
| Total income | ₹4,248.21 Cr |
| Interest income | ₹4,069.38 Cr |
| Other income | ₹1.76 Cr |
| Provisions | ₹181.62 Cr |
| Profit before tax | ₹1,073.67 Cr |
| Profit after tax | ₹805.01 Cr |
| EPS | ₹18.00 |
04 · Earnings & margin drivers
What drove earnings and margins
What drove net interest income and earnings
Interest income reached ₹4,069.38 crore for the quarter, forming the primary engine of top-line revenue.
Interest income served as the primary top-line driver, generating INR 4,069.38 crore during the quarter from the company's diversified loan book.
Other income contributed a minor INR 1.76 crore, keeping the revenue mix heavily weighted toward core lending yields.
NIM, spread, funding cost and credit cost
Finance costs absorbed ₹1,908.64 crore during the quarter to support ongoing borrowings and liquidity requirements.
Provisions were maintained at ₹181.62 crore, reflecting disciplined asset quality provisioning relative to the expanding loan book.
Finance costs reached INR 1,908.64 crore, representing the largest operational outgo and reflecting the cost of debt funding required to support loan disbursements.
Provisions of INR 181.62 crore impacted intermediate earnings, balancing credit risk protection against net profitability.
05 · Loan growth, sanctions & disbursements
How the lending book is moving
Total assets under management expanded to ₹1,24,268 crore, marking a 38% increase compared to the corresponding period of the previous year.
06 · Portfolio mix & lending exposure
Where the loan book is concentrated
Segments and products
Secured loans represented 90% of the total asset portfolio, anchored by core strengths in gold loans, home loans, and secured MSME financing.
Geography and market mix
The distribution footprint serves customers across urban, semi-urban, and rural areas throughout India, focusing on financially underserved populations.
07 · Strategy & portfolio evolution
How the lending mix and strategic agenda are changing
The board approved a Social Financing Framework backed by a 'Good' second-party opinion from Sustainable Fitch, bolstering sustainable capital initiatives.
The company is actively deploying AI-driven tools to strengthen risk management, internal audits, compliance protocols, and customer service delivery.
08 · Reported developments
What changed operationally
Management highlighted that recent rating adjustments by Fitch underscore growing external confidence in the company's credit profile and balance sheet.
Annualized return on equity exceeded 20% and return on assets stood at 3.1% for the first half of FY27.
09 · Items worth noticing
The line items that can distort a quick read
The company booked INR 181.62 crore in provisions during the quarter to maintain adequate coverage against credit risks.
10 · Funding & balance sheet
How funding, liquidity and capital support the loan book
Capital allocation & funding
The lender is deepening strategic co-lending and financing partnerships with major commercial banks to diversify its funding mix and support loan book expansion.
The company maintained substantial wholesale debt obligations to fund asset expansion, resulting in a quarterly finance cost of INR 1,908.64 crore.
11 · Management guidance & targets
What management is targeting from here
Management stated an expectation to sustain resilient, capital-efficient growth through the remainder of FY27 while continuing to serve underserved segments in India.
12 · Beyond the numbers
What changed beyond the numbers
Consolidated Reporting Scope
Financial results are reported on a consolidated basis, incorporating the parent NBFC and its operational subsidiaries as per regulatory reporting standards.
13 · Key Q&A
The quarter, answered directly
What does IIFL Finance do?
IIFL Finance Limited is a prominent retail-focused non-banking financial company (NBFC) in India that provides a comprehensive suite of financial products to underserved and unbanked customer segments. Its core lending portfolio encompasses gold loans, home loans, secured micro-small-and-medium-enterprise (MSME) financing, and microfinance through specialised subsidiaries.
What is the clearest takeaway from Q2 FY27?
Management highlighted that assets under management crossed the ₹1,24,268 crore milestone during the quarter, representing a 38% year-on-year expansion. The secured portion of the asset book remained robust at 90%, supported by core franchises in gold and housing finance.
What drove earnings or loan-book movement?
Interest income reached ₹4,069.38 crore for the quarter, forming the primary engine of top-line revenue.
What mattered most for margins, funding or credit cost?
Finance costs absorbed ₹1,908.64 crore during the quarter to support ongoing borrowings and liquidity requirements.
What changed operationally beyond the headline numbers?
The board approved a Social Financing Framework backed by a 'Good' second-party opinion from Sustainable Fitch, bolstering sustainable capital initiatives.
What is management guiding or targeting from here?
Management stated an expectation to sustain resilient, capital-efficient growth through the remainder of FY27 while continuing to serve underserved segments in India.
14 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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15 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Asset Quality Tracking: Monitor gross non-performing asset levels against the reported 1.5% baseline and track provision coverage trends.
- 02
Capital and Return Metrics: Track the sustainability of return on equity above 20% and return on assets around 3.1% through subsequent quarters of FY27.
- 03
Asset Quality and Provisioning Trends: Track future changes in provisioning levels relative to loan book expansion and macroeconomic credit cycles.
- 04
Borrowing Cost Trajectory: Monitor finance cost trends against prevailing systemic interest rates to evaluate debt-servicing efficiency.
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