IIFL Finance Q3FY26: PAT Rs. 501 Cr (up 20% q-o-q), interim dividend of Rs. 4/share declared
IIFL Finance reported Q3FY26 consolidated PAT of ₹501 Cr, up 20% QoQ. AUM grew 9% QoQ to ₹98,336 Cr, driven by gold loans. The company declared an interim dividend of ₹4 per share. Asset quality improved with GNPA at 1.60%. S&P revised outlook to Positive.
The results show significant improvement in key financial metrics, a strategic shift towards less risky segments, and a positive rating outlook, which are material events for investors and the company's future prospects.
The company reported strong growth in profit and AUM, improved asset quality, and a positive outlook revision from S&P. The declaration of an interim dividend also contributes to the positive sentiment.
IIFL Finance Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025. The company reported a consolidated profit after tax of ₹501 Cr for the quarter, marking a 20% increase quarter-on-quarter. Consolidated Assets Under Management (AUM) grew by 9% QoQ to ₹98,336 Cr, driven by strong momentum in the gold loans business.
The company also declared an interim dividend of ₹4 per share (200%).
Key highlights from the quarter include a significant improvement in asset quality, with Gross Non-Performing Assets (GNPA) decreasing to 1.60% from 2.14% in the previous quarter. IIFL Finance has strategically exited high-risk segments such as digital unsecured MSME, micro-LAP from HFC, and high-risk MFI geographies, focusing instead on collateral-backed retail lending, particularly gold loans and mortgages.
In terms of business segment performance, Gold Loans AUM surged by 189% YoY and 26% QoQ to ₹43,432 Cr. MSME Loans AUM grew 17% YoY and 4% QoQ to ₹10,081 Cr, with a strategic recalibration towards low-risk secured lending. Home Loans AUM grew 5% YoY to ₹31,893 Cr, while Microfinance AUM stood at ₹8,360 Cr, down 19% YoY.
S&P Global Ratings revised the outlook on IIFL Finance’s Long-Term Issuer Default Rating from Stable to Positive and affirmed its rating at ‘B+’. The company reported a Return on Assets (ROA) of 2.1% and Return on Equity (ROE) of 11.3% for the nine months ended December 31, 2025. Liquidity stood at ₹9,433 Cr.
Mr. Nirmal Jain, Founder & Managing Director, stated that the quarter reflects a consolidation of the company's transformation, with a clear shift towards sustainable operating momentum. He highlighted robust loan growth led by gold loans, improved asset quality, and strong capital and liquidity buffers.
Mr. Kapish Jain, Group Chief Financial Officer, emphasized the benefits of portfolio rebalancing and tighter execution, noting that cost of funds is trending down and provisioning is well above regulatory requirements, leading to steady improvement in returns.
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