Q1 2026 IIFL Capital Services Ltd Earnings Call Transcript
Key Points
- Revenue for the quarter increased by 19% quarter on quarter and 6% year on year, indicating strong financial performance.
- Institutional and Investment Banking revenue nearly doubled from the previous quarter, showcasing significant growth in this segment.
- Other income increased by 73%, primarily due to mark-to-market gains on investments, particularly BSE shares.
- The company is transforming its Retail Broking segment into a full wealth management and financial planning practice, leveraging its pan-India distribution reach and technology.
- The company has added about 50 Relationship Managers (RMs) for its wealth management business, focusing on both HNI and ultra-HNI clients, indicating a strategic expansion in this area.
- Distribution income decreased by 24% due to the insurance effect, which typically spikes in the last quarter of the year.
- Retail brokerage revenue declined by 28% year on year, primarily due to regulatory changes affecting the number of expiry dates.
- Employee costs increased by 36% year on year, driven by headcount growth and provisions for variable pay, impacting overall profitability.
- Depreciation increased by 40% due to investments in technology and office infrastructure, adding to the cost burden.
- The cost-to-income ratio for the retail or non-institutional business is expected to remain elevated at around 75% this year, affecting margins.
Ladies and gentlemen, good day, and welcome to IIFL Capital Services Limited Q1 FY26 earnings conference call. (Operator Instructions) Please note that this call is being recorded.
With this, I now hand the conference over to Mr. R. Venkatraman, Managing Director, IIFL Capital Services. Thank you, and over to you, sir.
Thank you, and good afternoon, everyone. Welcome to the Q1 FY26 analyst call of IIFL Capital. I'm accompanied with Ronak Gandhi, who is our CFO.
India's macroeconomic outlook remains strong which is supported by easing inflation, which has linked -- resulted in a lower interest rate scenario, healthy monsoon, and benign oil prices. Our economy is showing signs of improving consumption once the interest rate benefits start trickling down. As you might be aware, we have two broad segments, Institutional Equities and Investment Banking and the legacy Retail Broking segment. We are trying and transforming our Retail Broking segment into a full wealth management
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