IIFL Capital Q2 FY27 Results (NSE: IIFLCAPS)
Signal: Growth reaccelerated
The read
The operating rebound is concentrated in capital markets: segment PBT rose 51.4% YoY and total revenue rose 26.1%, but the trajectory is not yet clean because PAT fell 31.2% QoQ, finance cost rose 40.3% YoY and other income swung to a 2406.85 lakh loss.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹690.33 Cr | +26.1% | -4.3% |
| Net profit | ₹126.61 Cr | +48.7% | |
| EPS | ₹4.07 | +49.6% | |
| EBIT margin | 31% |
P&L walk
Total revenue increased to 69033.23 lakh, +26.1% YoY but -4.3% QoQ, led by fees and commission income; operating margin was reported at 31%, while PAT rose 48.7% YoY but fell 31.2% QoQ as other income swung from 8982.59 lakh to -2406.85 lakh.
Segments
Capital market activity drove the group, with revenue of 61829.10 lakh, +30.5% YoY, and segment PBT of 16877.19 lakh, +51.4%; insurance broking dragged with a 335.46 lakh loss versus 490.02 lakh profit YoY, while facilities PBT rose to 884.04 lakh from 360.79 lakh.
Key positives
- Capital market activity revenue rose to 61829.10 lakh, +30.5% YoY, and segment PBT rose to 16877.19 lakh, +51.4% YoY, making it the clear earnings engine.
- Total revenue increased to 69033.23 lakh, +26.1% YoY, while total expenses rose 20.7% YoY, supporting the reported 31% operating margin.
- Basic EPS rose 49.6% YoY to 4.07 INR, broadly matching the 48.7% increase in PAT to 12661.21 lakh.
- Facilities and ancillary segment PBT increased to 884.04 lakh from 360.79 lakh YoY.
Key concerns
- PAT declined 31.2% QoQ to 12661.21 lakh despite total revenue of 69033.23 lakh, reflecting the reversal of other income from 8982.59 lakh to -2406.85 lakh.
- Finance cost increased 40.3% YoY to 7476.35 lakh and 24.9% QoQ, outpacing revenue growth.
- Insurance broking and ancillary moved to a 335.46 lakh segment loss from a 490.02 lakh profit YoY, indicating weakness outside the core capital-markets franchise.
- Operating cash flow was negative at 19501.99 lakh in H1FY27 despite 31077.55 lakh H1 profit, with working capital and financial-asset movements absorbing cash.
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