IIFL Finance Limited has reported a strong performance for Q4, with profit after tax (pre-NCI) rising 24 per cent quarter-on-quarter to Rs 623 crore.
The company’s assets under management (AUM) crossed Rs 1.08 lakh crore, reflecting sustained growth momentum driven by its focus on secured lending and operational efficiency.
Total income for the quarter stood at Rs 2,090 crore, marking a 51 per cent year-on-year increase, while pre-provision operating profit rose 80 per cent year-on-year to Rs 1,173 crore. Profit before tax increased 169 per cent year-on-year to Rs 833 crore, supported by strong operating leverage and improving asset quality. For the full financial year FY26, PAT (pre-NCI) stood at Rs 1,817 crore, registering a growth of 214 per cent year-on-year.
Asset quality improved during the quarter, with gross non-performing assets declining to 1.5 per cent and net non-performing assets easing to 0.7 per cent. The provision coverage ratio strengthened to 93 per cent, while return on assets stood at 2.4 per cent and return on equity at 13.1 per cent.
The company’s growth was led by its gold loans business, with AUM surging to Rs 52,581 crore, up 150 per cent year-on-year and 21 per cent sequentially. The home finance segment remained stable, with AUM at Rs 40,075 crore and improved asset quality. The MSME portfolio continued to shift towards secured lending, while the microfinance segment showed signs of stabilisation.
Commenting on the performance, Nirmal Jain, Founder and Managing Director, IIFL Finance, said, “The performance in Q4FY26 reflects the strength of our strategic direction and disciplined execution. Our focus on secured lending, portfolio quality and capital efficiency is delivering consistent results, with strong growth in gold loans and stable performance in mortgages. We have strengthened our balance sheet, improved asset quality and built a scalable operating model anchored in AI and co-lending partnerships.”
The company continues to advance its AI-led transformation across underwriting, collections and customer engagement. Its AI-driven lead generation engine is contributing a monthly pipeline of around Rs 1,000 crore, supported by multilingual customer interfaces and productivity tools.
Kapish Jain, Chief Financial Officer, IIFL Finance, added, “Fiscal 2026 has been a milestone year for the company, as we have strengthened our position as a retail-focused franchise led by gold loans and mortgage assets. Growth has been supported by strong partnerships with banks for direct assignment and co-lending, which together account for around 36 per cent of our AUM.”
With a strong balance sheet, improving asset quality and continued investment in technology, IIFL Finance enters FY27 with a clear focus on scaling secured lending, expanding co-lending partnerships and driving sustainable, capital-efficient growth across its portfolio.
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