IIFL Finance's Q1 FY 2025-26 Quarterly Results

Result Summary

• IIFL Finance Ltd reported a 1.3% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 12.7%.
• Its expenses for the quarter were down by 2.0% QoQ and up 7.9% YoY.
• The net profit decreased 36.3% QoQ and decreased 18.9% YoY.
• The earnings per share (EPS) of IIFL Finance Ltd stood at 5.5 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

IIFL Finance Ltd is a prominent non-banking financial company (NBFC) in India, providing a diverse range of financial services. The company is known for its offerings in loans, wealth management, and financial advisory services. Its portfolio includes products such as home loans, gold loans, business loans, and microfinancing, catering to a wide range of customers from individuals to small and medium enterprises. The company operates in a highly competitive and regulated industry, which has experienced significant changes due to technological advancements and evolving regulatory requirements. As of now, there are no recent major developments publicly known that have been included in this analysis.

Revenue

In the first quarter of the fiscal year 2026 (Q1FY26), IIFL Finance Ltd reported a total income of ₹2,959.30 crores. This marks an increase of 1.3% from the previous quarter (Q4FY25), where the total income was ₹2,922.12 crores. Year-over-year (YoY), the company experienced a significant rise in total income by 12.7% compared to Q1FY25, which recorded ₹2,625.39 crores. The growth in revenue reflects the company's ability to generate higher income over both the short term and long term, indicating its capacity to sustain its operations and possibly expand its reach within the financial services sector.

Profitability

For Q1FY26, IIFL Finance Ltd's profit before tax was ₹356.31 crores, showing a decline of 35.6% quarter-over-quarter (QoQ) from ₹553.69 crores in Q4FY25. Compared to the same quarter in the previous year (Q1FY25), when the profit before tax was ₹436.16 crores, there is an 18.3% decrease year-over-year (YoY). The tax expense for Q1FY26 was ₹82.14 crores, which is lower by 33.3% QoQ and 16.2% YoY. Consequently, the profit after tax stood at ₹274.17 crores, marking a decline of 36.3% QoQ from ₹430.63 crores and an 18.9% decrease YoY from ₹338.16 crores. Earnings per share for the quarter were ₹5.50, down 43.3% QoQ and 21.4% YoY, indicating a substantial reduction in profitability for the period.

Operating Metrics

In Q1FY26, IIFL Finance Ltd managed to reduce its total expenses to ₹2,090.53 crores, a decrease of 2.0% from ₹2,132.83 crores in the previous quarter (Q4FY25). Compared to the same quarter last year (Q1FY25), total expenses increased by 7.9% from ₹1,937.66 crores. The decrease in expenses QoQ alongside the increase in total income suggests a positive operational efficiency over the short term. However, the increased expenses YoY, despite higher revenue generation, highlight the challenges faced in managing operational costs effectively over the longer term. These operating metrics provide insights into the company's cost management strategies and their impact on overall financial health.