IIFL Finance Q1 FY27 Results (NSE: IIFL)
Signal: Earnings grew
The read
Strong operational quarter with PAT of ₹713 Cr (pre-NCI) surpassing pre-embargo highs; gold loan AUM more than doubled, secured lending now ~89% of AUM; operating leverage and lower credit costs drove a 50% PPOP growth; slight QoQ uptick in GNPA warrants monitoring.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,919.15 Cr | 34% | 6% |
| EBIT | ₹2,648.11 Cr | 61% | |
| Net profit | ₹675.05 Cr | 189.3% | |
| EPS | ₹15.87 | 189.1% | |
| EBIT margin | 69.2% |
P&L walk
Operating leverage evident: total income +34% YoY while opex rose only +18%; credit costs down 43% YoY; PAT up 160% YoY.
Segments
Gold loan AUM more than doubled YoY to ₹58,406 Cr, driving overall AUM growth of 38% YoY; MSME secured and home finance grew 9% and 3% QoQ respectively.
Key positives
- PAT up 160% YoY to ₹713 Cr (pre-NCI), exceeding pre-embargo levels and marking third consecutive quarter of recovery.
- Gold loan AUM surged 114% YoY to ₹58,406 Cr, now 51% of total AUM, driving overall AUM growth of 38% YoY.
- Asset quality improved: GNPA down 79bps YoY to 1.6%, PCR at 94%; credit costs down 43% YoY.
Key concerns
- GNPA up 9bps QoQ to 1.6%, with gold loan GNPA rising to 0.61% from 0.35% QoQ.
- Standalone PAT fell 8% QoQ due to absence of ₹122 Cr dividend income; core PBT grew 16% QoQ.
- CRAR declined to 24.3% from 25.3% QoQ; equity raise needed to sustain growth trajectory.
Research and educational content only. Not investment advice.