IIFL Finance Reports Strong Q1 FY27 Performance: Net Profit Surges 160% to ₹713 Crore

IIFL Finance Limited, one of India's leading non-banking financial companies (NBFCs), announced its unaudited consolidated financial results for the first quarter ended June 30, 2026. Demonstrating solid top-line momentum and expanding operational profitability, the company recorded a robust performance for the period, driven by a sharp rise in core interest income and controlled asset quality metrics.

Executive Financial Summary

Total Revenue from Operations: Rose 32.7% year-on-year (YoY) to ₹3,919.15 crore in Q1 FY27, compared to ₹2,952.83 crore reported in Q1 FY26 (CPLY). Revenue grew 6.1% sequentially over ₹3,692.50 crore in Q4 FY26.

Total Income: Stood at ₹3,921.88 crore for the quarter under review, up 32.5% YoY from ₹2,959.30 crore in Q1 FY26 and 6.0% sequentially from ₹3,699.67 crore in Q4 FY26.

Total Expenses: Stood at ₹2,993.24 crore in Q1 FY27, up 15.0% from ₹2,602.99 crore in Q1 FY26 and 4.4% from ₹2,867.01 crore in Q4 FY26.

Profit Before Tax (PBT): Climbed 160.6% YoY to ₹928.64 crore in Q1 FY27, compared to ₹356.31 crore in Q1 FY26. Sequentially, PBT rose 11.5% from ₹832.66 crore in Q4 FY26.

Net Profit After Tax (PAT): Surged 160.1% YoY to ₹713.13 crore in Q1 FY27, up from ₹274.17 crore in Q1 FY26. On a quarter-on-quarter basis, PAT grew 14.4% compared to ₹623.26 crore in Q4 FY26.

Profit Attributable to Owners: Stood at ₹675.07 crore for Q1 FY27, compared to ₹233.35 crore in Q1 FY26 and ₹586.84 crore in Q4 FY26. Profit attributable to non-controlling interests was ₹38.06 crore.

Detailed Revenue & Expense Breakdown

Income Drivers

Interest Income: Maintained strong momentum as the primary revenue stream, coming in at ₹3,723.37 crore in Q1 FY27. This represents a 44.1% increase compared to ₹2,583.49 crore in Q1 FY26 and an 11.8% sequential rise from ₹3,330.04 crore in Q4 FY26.

Fees and Commission Income: Reached ₹120.86 crore, up 12.4% from ₹107.50 crore in CPLY, though moderating sequentially from ₹157.08 crore in Q4 FY26.

Net Gain on Derecognition of Financial Instruments (FVTOCI): Stood at ₹74.92 crore in Q1 FY27, down from ₹229.19 crore in Q1 FY26 and ₹205.38 crore in Q4 FY26.

Operational Costs & Provisions

Finance Cost: Increased to ₹1,719.47 crore during the quarter, compared to ₹1,288.80 crore in Q1 FY26 and ₹1,609.63 crore in Q4 FY26.

Impairment on Financial Instruments: Reduced sharply to ₹294.19 crore in Q1 FY27, down 42.6% YoY from ₹512.46 crore in Q1 FY26 and down 9.7% sequentially from ₹325.71 crore in Q4 FY26.

Employee Benefits Expenses: Stood at ₹599.44 crore for the quarter under review, compared to ₹495.51 crore in CPLY and ₹542.04 crore in Q4 FY26.

Depreciation, Amortisation and Impairment: Came in at ₹62.90 crore during the quarter.

Other Expenses: Totaled ₹287.65 crore in Q1 FY27, compared to ₹259.21 crore in Q1 FY26 and ₹311.69 crore in Q4 FY26.

Key Ratios & Asset Quality Indicators

IIFL Finance maintained stable asset quality and healthy margin profile during the quarter:

Gross NPA (GNPA): Stood at 1.55% as of June 30, 2026.

Net NPA (NNPA): Maintained at a low level of 0.82% as of June 30, 2026.

Specific Provision Coverage Ratio: Stood at 47.30%.

Operating Margin: Reported at 31.20% for Q1 FY27.

Net Profit Margin: Stood at 18.18% for the quarter.

Debt to Equity Ratio: Stood at 4.52 as of June 30, 2026.

Total Debt to Total Asset Ratio: Stood at 0.80.

Net Worth: Reached ₹14,200.45 crore as of June 30, 2026.

Comprehensive Income & EPS

Total Comprehensive Income: Totaled ₹724.98 crore for Q1 FY27, up from ₹264.57 crore in Q1 FY26 and ₹648.98 crore in Q4 FY26. This includes total other comprehensive income of ₹11.85 crore.

Earnings Per Share (EPS): Basic EPS for Q1 FY27 jumped to ₹15.87 per share (face value ₹2 each), compared to ₹5.49 in Q1 FY26 and ₹13.80 in Q4 FY26. Diluted EPS stood at ₹15.78 per share compared to ₹5.45 in Q1 FY26 and ₹13.72 in Q4 FY26.

Paid-up Equity Share Capital: Stood at ₹85.06 crore as of June 30, 2026.

Shares of IIFL Finance Limited was last trading in BSE at Rs. 572.10 as compared to the previous close of Rs. 557.40. The total number of shares traded during the day was 87616 in over 1969 trades.

The stock hit an intraday high of Rs. 577.70 and intraday low of 556.95. The net turnover during the day was Rs. 50004034.00.

Source : Equity Bulls

Keywords

IIFLFinance INE530B01024 Q1FY27 Q1FY2027 ResultUpdate