IIFL Finance Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript IIFL Finance Ltd filed with BSE on 07 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
IIFL Finance reported consolidated Q4 FY26 profit after tax of Rs 623 crore, up 24% quarter-on-quarter, with loan AUM crossing Rs 1 lakh crore and gold loan AUM up 150% year-on-year. Management said gross NPA stood at about 1.5% and net NPA at 0.7%, while housing finance profitability remained subdued due to stress in the legacy micro LAP portfolio. Management also discussed the pending income tax assessment order following a group-wide search operation, and outlined growth guidance for gold, housing and microfinance businesses for FY27.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Consolidated profit after tax before non-controlling interest: INR623 crores (Q4 FY26)
p. 4
“The consolidated profit after tax before non-controlling interest stands at INR623 crores, which is up by 24% on a quarter-on-quarter basis.”
Kapish Jain, page 4 of the filed PDF · View the filing
Pre-provision operating profit: INR1,173 crores (Q4 FY26)
p. 4
“we recorded preprovision operating profit of INR1,173 crores, which is up 80% Y-o-Y and 9% on a quarter-onquarter basis”
Kapish Jain, page 4 of the filed PDF · View the filing
Consolidated loan AUM: INR1,08,180 crores (Q4 FY26)
p. 4
“the consolidated loan AUM grew by 38% on a Y-o-Y basis, and up 10% on a quarter-on-quarter basis to close at INR1,08,180 crores”
Kapish Jain, page 4 of the filed PDF · View the filing
Gold loan AUM: INR52,581 crores (Q4 FY26)
p. 4
“driven by gold, which closed at INR52,581, up by 150% on a Y-o-Y and 11% quarter-on-quarter basis with a healthy tonnage at 62 tons”
Kapish Jain, page 4 of the filed PDF · View the filing
Gross NPA: 1.5% (Q4 FY26)
p. 4
“Our gross NPA stood at around 1.5 and net NPA of 0.7, which is down 77 basis points and 32 basis points”
Kapish Jain, page 4 of the filed PDF · View the filing
Assigned loan book: INR23,704 crores (Q4 FY26)
p. 5
“The assigned loan book, which is coming through our partnership with the bank, has grown out smartly to INR23,704 crores, up 85% on a Y-o-Y, 11% quarter-on-quarter basis.”
Kapish Jain, page 5 of the filed PDF · View the filing
Co-lending asset book: INR14,384 crores (Q4 FY26)
p. 5
“our co-lending asset book stands around INR14,384 crores, which is up 36% Y-o-Y and more importantly, 9% quarter-onquarter because the new regulation came up 1st of January”
Kapish Jain, page 5 of the filed PDF · View the filing
Average cost of borrowing: 9.16% (Q4 FY26)
p. 5
“Our quarterly average cost of borrowing decreased 8 basis points Y-o-Y and 25 basis points on a quarter-on-quarter basis to stand at 9.16%.”
Kapish Jain, page 5 of the filed PDF · View the filing
Annualized ROE: 17.89% (Q4 FY26)
p. 5
“Our healthy trajectory with our annualized ROE for quarter 4 standing at around 17.89%, similar to what we have reported in the previous years and particularly prior to fiscal '24.”
Kapish Jain, page 5 of the filed PDF · View the filing
ROA: 2.97% (Q4 FY26)
p. 5
“the ROA stood at around 2.97% for quarter 4”
Kapish Jain, page 5 of the filed PDF · View the filing
Net gearing: 3.8 (Q4 FY26)
p. 5
“We have a positive ALM, thereby inflows covered at far exceed the expected outflows across all buckets with net gearing standing at around 3.8.”
Kapish Jain, page 5 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Gold loan AUM growth — 20% to 25% · FY27
stated conditionally by Nirmal Jain
p. 6
“So, I think if they remain here, we should see AUM growth of around 20% to 25%.”
Nirmal Jain, page 6 of the filed PDF · View the filing
Credit cost — 1.5% to 1.7% · FY27
stated firmly by Nirmal Jain
p. 8
“Next year, our credit cost on the whole will be around 1.5% to 1.7%.”
Nirmal Jain, page 8 of the filed PDF · View the filing
ROA — 3%, 3.5% · FY27
stated as an aspiration by Nirmal Jain
p. 8
“So that 2.4% ROA should grow by -- I think it should end at 3%, 3.5%”
Nirmal Jain, page 8 of the filed PDF · View the filing
Housing finance loan book growth — 18% to 20% · FY27
stated firmly by Girish Kousgi
p. 11
“we are expecting a book growth of about 18%, 20% in FY '27 and disbursement growth would be about 25% to 27%.”
Girish Kousgi, page 11 of the filed PDF · View the filing
Off-book proportion (DA plus co-lending) — 40%, 45%
stated as an aspiration by Nirmal Jain
p. 10
“Our endeavor will be to take it to 40%, 45%.”
Nirmal Jain, page 10 of the filed PDF · View the filing
Co-lending share of AUM — 20%
stated as an aspiration by Nirmal Jain
p. 10
“and we would like it to grow to 20% or so”
Nirmal Jain, page 10 of the filed PDF · View the filing
Comfortable leverage ratio — 4.5x
stated firmly by Nirmal Jain
p. 12
“4.5x is okay. I don't think up to 4.5x is any challenge.”
Nirmal Jain, page 12 of the filed PDF · View the filing
Housing finance yield — 12% plus · this year
stated firmly by Girish Kousgi
p. 13
“Now we are pivoting towards higher yield, which will be to start with about 12% plus this year.”
Girish Kousgi, page 13 of the filed PDF · View the filing
Samasta AUM growth — around 20%
stated conditionally by Venkatesh
p. 16
“We will be growing overall on around 20% odd.”
Venkatesh, page 16 of the filed PDF · View the filing
Cost of funds reduction from rating upgrade — 100 to 120 basis points
stated conditionally by Nirmal Jain
p. 18
“I believe that our cost of funding can go down easily by 100 to 120 basis points once the rating improves.”
Nirmal Jain, page 18 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Nirmal Jain said the special audit was completed and submitted, and that assessment orders for group companies had started arriving, with IIFL Finance's order expected soon.
Answered by Nirmal Jain
Asked by Yash: What is happening with the income tax special audit and its potential impact?
p. 5
“Special audit got over long back within 60 days of given period. So the special audit report is submitted to tax authorities as an input for the assessment.”
Nirmal Jain, page 5 of the filed PDF · View the filing
Nirmal Jain said a demerger into three entities is an option being considered but no Board decision has been made and no timeline can be given.
Answered by Nirmal Jain
Asked by Yash: Is there any progress on a possible demerger of IIFL Home Finance and Samasta?
p. 7
“No, even Samasta can get separated, so there will be demerger, there will be three entities.”
Nirmal Jain, page 7 of the filed PDF · View the filing
Nirmal Jain guided credit cost down to 1.5-1.7% from 2.7-3% and said ROA should improve as a result.
Answered by Nirmal Jain
Asked by Deepak Poddar: What credit cost and ROA range is expected for FY27 given 20-25% AUM growth?
p. 8
“So, credit cost this year, if you remember, we had given a guidance of 2.7% to 3%. Next year, our credit cost on the whole will be around 1.5% to 1.7%.”
Nirmal Jain, page 8 of the filed PDF · View the filing
Nirmal Jain said the company has set up systems for credit assessment on loans above Rs 2.5 lakh and views the new rules as favorable given its existing processes.
Answered by Nirmal Jain
Asked by Shubhranshu Mishra: How is the company addressing new gold loan regulations effective April 1?
p. 9
“So we have set up our system and detailed credit assessment is done for all the loans above INR2.5 lakh.”
Nirmal Jain, page 9 of the filed PDF · View the filing
Girish Kousgi said the company is targeting book growth of about 18-20% and disbursement growth of 25-27%, with a focus on affordable and emerging segments.
Answered by Girish Kousgi
Asked by Chirag Singhal: What is the growth trajectory expected for the housing finance book in the current financial year?
p. 11
“Now in terms of growth, we are expecting a book growth of about 18%, 20% in FY '27 and disbursement growth would be about 25% to 27%.”
Girish Kousgi, page 11 of the filed PDF · View the filing
Nirmal Jain said leverage up to 4.5x is comfortable and growing co-lending and off-book share will help manage leverage and capital needs.
Answered by Nirmal Jain
Asked by Navneet Bhaiya: What leverage level is the company comfortable with given growth plans?
p. 12
“Typically, you can go up to 6.7x based on the capital adequacy. Actually, the equity requirement is 10%. It can go 10x also, but less than 5 up to 4.5 is good.”
Nirmal Jain, page 12 of the filed PDF · View the filing
Nirmal Jain said tonnage growth depends on customer credit needs rather than gold price and that branch expansion will support continued growth.
Answered by Nirmal Jain
Asked by Pranay Shah: What explains the flattish gold tonnage growth and how will 25% AUM growth be achieved?
p. 13
“So it's not really linked to that. That is one. Two, we'll also be expanding our branch footprint a little.”
Nirmal Jain, page 13 of the filed PDF · View the filing
Nirmal Jain explained that equity raised a few years ago combined with book contraction from discontinued micro LAP lowered leverage and returns, but expects improvement as disbursements grow.
Answered by Nirmal Jain
Asked by Yash: When will IIFL Home Finance ROE and ROA improve given low leverage?
p. 13
“But this year, as we said that as we grow our disbursements and our loan book and loan AUM, then these things will start falling in place.”
Nirmal Jain, page 13 of the filed PDF · View the filing
Girish Kousgi attributed muted growth to exiting micro LAP due to overlap with MFI stress, and said the affordable housing opportunity remains large despite competition.
Answered by Girish Kousgi
Asked by Gaurav Khandelwal: Why was mortgage loan growth muted in FY26 and how is competition in affordable housing viewed?
p. 17
“So last 2 years, since some of the customers, there was an overlap between the MFI business as well as our micro LAP. So we also faced a challenge.”
Girish Kousgi, page 17 of the filed PDF · View the filing
Nirmal Jain said the company has met the size benchmark and needs to focus on capital adequacy, with a potential 100-120 basis point reduction in funding cost upon a rating upgrade.
Answered by Nirmal Jain
Asked by Murli Khandelwal: What is the roadmap for improving the standalone credit rating and reducing cost of funds?
p. 18
“I believe that our cost of funding can go down easily by 100 to 120 basis points once the rating improves.”
Nirmal Jain, page 18 of the filed PDF · View the filing
Risks flagged
Higher-than-expected stress in the legacy micro LAP portfolio affecting housing finance profitability
p. 4
“our AUM have remained flat and profitability remains subdued partly due to higher-than-expected stress in our legacy micro LAP portfolio”
Nirmal Jain, page 4 of the filed PDF · View the filing
Money market rate volatility and liquidity tightness following geopolitical disruption
p. 18
“You know, when the war broke out, the last month, the rates had shot up and liquidity became a little tight, but it's normalizing now very soon.”
Nirmal Jain, page 18 of the filed PDF · View the filing
Overlap between MFI customers and micro LAP contributed to past credit challenges
p. 17
“there was an overlap between the MFI business as well as our micro LAP. So we also faced a challenge.”
Girish Kousgi, page 17 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.