Q2 2026 IIFL Finance Ltd Earnings Call Transcript
Key Points
- IIFL Finance Ltd (BOM:532636) reported a 52% increase in profit after tax before noncontrolling interest, reaching INR418 crore, driven by strong growth in the gold finance business.
- The company's pre-provision operating profit rose by 38% year-over-year and 23% quarter-on-quarter, totaling INR1,033 crore.
- Consolidated Assets Under Management (AUM) grew by 35% year-over-year, reaching INR90,122 crore, with gold loans hitting a historical high of INR34,577 crore.
- The company's capital adequacy is strong at 28.2%, with liquidity above INR8,000 crore, positioning it well for sustainable growth.
- IIFL Finance Ltd (BOM:532636) received a positive rating outlook change from Fitch for its international rating, indicating improved financial stability.
- The company faces challenges in its microfinance and MSME segments, with a cautious focus on recovery and collection due to asset quality concerns.
- Loan losses and provisions are expected to remain high, with guidance indicating a full-year provision of 2.8% to 3%, driven by discontinued micro LAP and unsecured digital loans.
- The asset quality in the unsecured business loans and LAP segments continues to deteriorate, raising concerns about bad origination and industry-wide challenges.
- The microfinance segment is still experiencing pain, with loan losses and provisions expected to be around 8% for the year.
- The company's standalone capital adequacy is being closely monitored, with potential concerns about maintaining target levels amid robust growth.
Ladies and gentlemen, good day, and welcome to IIFL Financial Limited Q2 FY26 earnings conference call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Kapish Jain, MD, IIFL Financial Limited. Thank you, and over to you, Mr. Jain.
Hi. This is Kapish Jain. I'm the Group CFO at IIFL Finance. Ladies and gentlemen, thank you very much for joining this call. This is about the quarter two results for fiscal [FY22 and '26].
On the call, I'm joined by Mr. Nirmal Jain, our Founder and Promoter and MD for the group and the company. I'm very happy to also introduce Mr. Girish Kousgi, who joins us as the MD and CEO for IIFL Housing Finance.
We also have Venkatesh on the call. Venkatesh, as you know, is our CEO for the Samasta Microfinance Company. So on this call, we will talk to you about our results for quarter two. And before I talk into detail on the numbers, I hand over to Nirmal to just give you a quick update on our business
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