Stock Report

IIFL Capital Services Reports Record Q1 FY27 Net Profit of ₹184.16 Crore; PBT Surges 55% Sequentially to ₹239.28 Crore

Posted On : 2026-07-24 10:50:22( TIMEZONE : IST )

Financial services major IIFL Capital Services Limited (formerly known as IIFL Securities Limited; CIN: L99999MH1996PLC132983) announced its unaudited consolidated financial results for the first quarter ended June 30, 2026 (Q1 FY27). Supported by substantial expansion in its primary capital market activities and robust growth in non-operating other income, the company registered a consolidated Profit After Tax (PAT) of ₹18,416.34 lakh (₹184.16 crore), marking a 60.0% sequential jump compared to ₹11,511.23 lakh in Q4 FY26 and a 4.9% year-on-year growth over ₹17,553.08 lakh in Q1 FY26.

Core Financial Performance Breakdown

IIFL Capital Services demonstrated notable operational strength across key income streams and expense metrics during the quarter:

Top-Line Dynamics

Revenue from Operations: Consolidated operational revenue reached ₹63,148.18 lakh (₹631.48 crore) for Q1 FY27. This was powered by fees and commission income of ₹51,084.59 lakh, interest income of ₹11,839.84 lakh, and rental income of ₹223.75 lakh. Revenue grew 2.3% YoY from ₹61,736.67 lakh in Q1 FY26.

Other Income Expansion: Non-operational other income jumped significantly to ₹8,982.59 lakh in Q1 FY27 from ₹1,049.00 lakh in Q4 FY26 and ₹6,302.83 lakh in Q1 FY26.

Total Income: Combined total revenue for the quarter rose to ₹72,130.77 lakh (₹721.31 crore), delivering a 10.2% sequential surge over ₹65,478.64 lakh in Q4 FY26 and a 6.0% YoY increase compared to ₹68,039.50 lakh in Q1 FY26.

Expenditure Profile

Total Operating Expenses: Consolidated expenses contracted 3.6% sequentially to ₹48,202.41 lakh in Q1 FY27, down from ₹50,017.51 lakh in Q4 FY26, though up 6.4% YoY against ₹45,285.10 lakh in Q1 FY26.

Cost Composition: Key expense drivers included fees and commission expenses of ₹13,884.48 lakh, employee benefits expense of ₹17,881.31 lakh, administrative and other expenses of ₹8,797.55 lakh, finance costs of ₹5,986.30 lakh, and depreciation and amortization expense of ₹1,652.77 lakh.

Profitability & Returns

Profit Before Tax (PBT): Surged 54.8% sequentially to ₹23,928.36 lakh (₹239.28 crore) in Q1 FY27, compared to ₹15,461.13 lakh in Q4 FY26 and ₹22,754.40 lakh in Q1 FY26.

Tax Provision: Total tax expenses for the period stood at ₹5,512.02 lakh (comprising current tax of ₹4,516.38 lakh and deferred tax of ₹995.64 lakh).

Comprehensive Income: After adjusting for Other Comprehensive Income (OCI) losses of ₹442.24 lakh (attributable to remeasurements of defined benefit plans net of tax), Total Comprehensive Income for Q1 FY27 closed at ₹17,974.10 lakh, compared to ₹11,525.78 lakh in Q4 FY26 and ₹17,450.32 lakh in Q1 FY26.

Earnings Per Share (EPS): Basic EPS rose to ₹5.92 per share (face value ₹2/- each) for the quarter, up from ₹3.69 in Q4 FY26 and ₹5.67 in Q1 FY26. Diluted EPS stood at ₹5.60 per share.

Operating Segment Performance

The company reports its operating performance across three dedicated business divisions:

1. Capital Market Activity

Core Offerings: Equity, currency, and commodity broking, depository participant services, merchant banking, wealth management, and third-party financial product distribution.

Segment Revenue: Expanded 16.4% sequentially and 7.1% YoY to ₹65,840.78 lakh in Q1 FY27, up from ₹56,550.51 lakh in Q4 FY26 and ₹61,456.95 lakh in Q1 FY26.

Segment Results (PBT): Surged 68.2% sequentially to ₹23,655.06 lakh, compared to ₹14,067.79 lakh in Q4 FY26 and ₹22,310.18 lakh in Q1 FY26.

Segment Assets & Liabilities: Segment assets grew to ₹10,31,721.44 lakh (₹10,317.21 crore) as of June 30, 2026, while segment liabilities stood at ₹7,28,410.43 lakh, yielding a capital employed of ₹3,03,311.01 lakh.

2. Insurance Broking and Ancillary

Core Offerings: Insurance broking and wellness services.

Segment Revenue: Stood at ₹5,662.15 lakh for Q1 FY27, compared to ₹8,554.22 lakh in Q4 FY26 and ₹5,881.15 lakh in Q1 FY26.

Segment Results: Posted a loss of ₹256.12 lakh for the quarter, against a profit of ₹1,025.92 lakh in Q4 FY26 and ₹300.48 lakh in Q1 FY26.

3. Facilities and Ancillary

Core Offerings: Property rental income and supporting services.

Segment Revenue: Recorded ₹1,167.47 lakh in Q1 FY27, reflecting an increase from ₹1,020.94 lakh in Q4 FY26.

Segment Results: Increased 44.1% sequentially to ₹529.42 lakh, compared to ₹367.42 lakh in Q4 FY26 and ₹143.74 lakh in Q1 FY26.

Assets Under Management & Key Financial Ratios

Total Assets Under Management (AUM) held by IIFL Capital Services stood at ₹2,57,095 crore as of June 30, 2026. This comprises ₹1,99,731 crore in custody assets and ₹57,364 crore in distribution assets.

Key balance sheet and operational ratios for the quarter ended June 30, 2026 include:

Net Worth: ₹3,31,396 lakh (₹3,313.96 crore), up from ₹3,07,107.20 lakh as of March 31, 2026.

Debt to Equity Ratio: Balanced at 0.76 Times.

Interest & Debt Service Coverage: Interest Service Coverage Ratio stood at 5.24 Times, while the Debt Service Coverage Ratio came in at 4.50 Times.

Margins: Operating margin reached 38%, while net profit margin stood at 29%.

Other Balance Sheet Metrics: Total debt to total assets ratio stood at 0.23 Times, current ratio at 1.45 Times, and debtors turnover ratio at 4.38 Times.

Paid-up equity share capital stood at ₹6,269.01 lakh (comprising equity shares of face value ₹2/- each), while capital redemption reserve stood at ₹340 lakh. Total consolidated assets of the company reached ₹10,80,765.19 lakh (₹10,807.65 crore) as of June 30, 2026.

Mr. R. Venkataraman, Managing Director said, "In Q1FY27, we delivered a steady performance, driven by resilient investment banking and institutional equities businesses and continued traction across our wealth and asset management platforms."

Non-Institutional Business

IIFL Capital is a key player of the capital market with over 2,600+ partners and 100+ branches across India to service clients.

For the quarter, the average daily market turnover (including F&O) for the broking business was ₹3,15,780 Crores (BSE + NSE), down 2% Q-o-Q and up 41% Y-o-Y.

Financial Product Distribution AUM stood at ₹57,364 crores up 10% Q-o-Q.

Investment Banking

Investment banking division completed 11 deals across capital markets and private placement/advisory in Q1FY27. Select transactions completed includes IPO for Bagmane Prime Office REIT, QIP for Acme Solar Holdings, Krishna Institute of Medical Sciences, KRN Heat Exchanger, private placement for Yes Madam Technologies, SSF Plastics India and other advisory transactions. The deal pipeline remains robust and there are multiple transactions which are at various stages of execution.

Fairfax Investment

During the quarter, Fairfax India Holdings Corporation, through FIH Mauritius Investments Ltd. and its affiliate ("Fairfax"), has proposed to increase its shareholding in the Company to at least 51% through a combination of transactions, including a preferential issue of equity shares aggregating ~₹2,000 crores @ ₹350 per share, an open offer, and arrangements with the existing promoters, subject to receipt of customary regulatory and other approvals. The shareholders approved the preferential issue of equity shares at the Extraordinary General Meeting held on June 01, 2026.

Upon completion of the proposed transaction, Fairfax will become part of the Promoter Group alongside the existing Promoters and will have the right to nominate two directors to the Board. The investment is expected to strengthen the Company's capital base, support growth across its capital markets, wealth management, asset management, institutional equities, and investment banking businesses, and further enhance the Company's institutional credibility through Fairfax's long-term partnership, financial strength, and global network.

Shares of IIFL Capital Services Limited was last trading in BSE at Rs. 339.20 as compared to the previous close of Rs. 342.75. The total number of shares traded during the day was 11525 in over 182 trades.

The stock hit an intraday high of Rs. 347.55 and intraday low of 338.15. The net turnover during the day was Rs. 3920602.00.