IIFL Finance Reports Strong Q2 FY26 Results, New Home Finance CEO Appointed, Fitch Outlook Positive
IIFL Finance reported strong Q2 FY26 results, 52% PAT growth, 35% AUM increase, led by gold loans. New Home Finance CEO appointed, Fitch outlook positive. Management addressed asset quality and growth plans.
The announcement provides comprehensive quarterly financial results, outlines future guidance, addresses asset quality challenges, and highlights a significant management change in a key subsidiary. These factors are crucial for investor decision-making and have a high impact on the company's future outlook.
The company reported strong Q2 FY26 financial performance, including significant PAT and AUM growth, especially in gold loans. Key positive developments include a new CEO for Home Finance, a positive rating outlook change from Fitch, and management's proactive addressing of asset quality concerns and future growth strategies.
IIFL Finance Limited announced its earnings conference call transcript for the quarter ended September 30, 2025, which was held on October 31, 2025. Key highlights include: * Profit after tax (before non-controlling interest) for Q2 FY26 was ₹418 crore, a 52% increase quarter-on-quarter. * Pre-provision operating profit stood at ₹1,033 crore, up 38% year-on-year and 23% quarter-on-quarter. * Consolidated AUM grew by 35% year-on-year to ₹90,122 crore, with a 7% quarter-on-quarter growth. * Gold loan business reached a record AUM of ₹34,577 crore. Home loans and gold loans now constitute 74% of the total AUM. * Gross NPA improved to 2.1% and Net NPA to 1.0%, down by 21 basis points and 11 basis points respectively quarter-on-quarter. * The assigned loan book reached ₹18,607 crore, comprising 34% of the overall AUM, growing 33% year-on-year. * Co-lending book improved sharply to ₹11,848 crore, up 40% year-on-year. * Liquidity for the group was above ₹8,000 crore, with net gearing at 3.6x and a provision coverage ratio of 90%. * The company's capital adequacy stood at 18.6% for NBFC, 46.2% for HFC, and 33.4% for Samasta. * Mr. Girish Kousgi has been appointed as the new MD and CEO for IIFL Home Finance. * Fitch upgraded the rating outlook for IIFL Finance's international rating from stable to positive.
Management commentary: * Gold loan momentum is strong. Home loan AUM growth is targeted at 15%-18% in the second half of the fiscal year. * The company expects lower loan losses and provisions in the second half, with full-year loan losses and provisions projected to be between 2.8%-3%. Discontinued businesses like micro-LAP and unsecured digital loans, which were impacting loan losses, are now contained. * MFI business is showing signs of improvement, with collection percentage in Bihar at approximately 99% and arrears around 6%. * The slowdown in co-lending is attributed to new guidelines and banks preparing systems, with momentum expected from January 1, 2026. * Overall loan growth target is 15%-20% over the medium term, with ROA expected to be around 2.5%-2.8% for the full year. * Operating expenses saw an increase primarily due to higher incentives and bonuses for gold loan employees.
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IIFL Finance Limited filed this with the NSE as a statutory disclosure, categorised under concall transcript released. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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