IIFL Finance Q2 FY27 Results (NSE: IIFL)
Signal: Earnings grew
The read
The recovery is broadening: Q2FY27 total income reached ₹4,248.21 crore, up 28.4% YoY and 8.3% QoQ, while PAT rose 92.6% to ₹805.01 crore as impairment fell 43.9% to ₹280.81 crore; the key risk is the ₹1,438.95 crore aggregate tax demand under appeal, despite management stating no material adjustment is required.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,248.21 Cr | +28.4% | +8.3% |
| Net profit | ₹805.01 Cr | +92.6% | |
| EPS | ₹18 | +103.2% | |
| EBIT margin | 0 |
P&L walk
Consolidated total income rose 28.4% YoY to ₹4,248.21 crore, led by 44.3% growth in interest income, while impairment fell 43.9% to ₹280.81 crore and PAT increased 92.6% to ₹805.01 crore.
Key positives
- Interest income rose 44.3% YoY to ₹4,069.38 crore, outpacing total income growth of 28.4%.
- Impairment on financial instruments fell 43.9% YoY to ₹280.81 crore, improving profit conversion alongside PAT growth of 92.6%.
- Employee benefits expense rose only 13.0% YoY to ₹573.75 crore, materially slower than total income growth of 28.4%.
- Loans increased to ₹84,173.26 crore from ₹70,911.07 crore at March 31, 2026, while cash and cash equivalents rose to ₹5,379.84 crore from ₹3,328.23 crore.
Key concerns
- The ₹1,438.95 crore combined tax demand comprises ₹475.56 crore for the holding company and ₹963.39 crore for the subsidiary; both matters are under appeal and subject to pending proceedings.
- H1FY27 net cash used in operating activities was ₹12,444.11 crore, driven by net loan disbursements of ₹13,436.16 crore, versus ₹4,480.70 crore used in H1FY26.
- Finance cost rose 38.1% YoY to ₹1,908.64 crore, remaining a major sensitivity for earnings as the loan book expands.
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