IIFL Finance Q2FY27 Net Profit Climbs 93% To ₹805 Crore, AUM Crosses ₹1.24 Lakh Crore

Mumbai: IIFL Finance Ltd. announced on October 15, 2026, that its profit after tax (pre-NCI) surged 93% year-on-year to ₹805 crore for the second quarter of fiscal year 2027. Consolidated AUM grew 38% year-on-year to ₹1,24,268 crore.

Financial Performance

The company's total income for Q2 FY27 increased 23% year-on-year to ₹2,339.6 crore. Pre-provision operating profit rose 31% year-on-year to ₹1,355.1 crore, while profit before tax grew 93% year-on-year to ₹1,073.7 crore.

Asset Quality

Gross Non-Performing Assets (GNPA) stood at 1.5%, a decline of 7 basis points quarter-on-quarter. Net Non-Performing Assets (NNPA) were at 0.9%, an increase of 5 basis points quarter-on-quarter. The provision coverage ratio was 91%.

Business Segments

Gold loan AUM increased 90% year-on-year and 13% quarter-on-quarter to ₹65,729 crore. Home finance AUM reached ₹43,070 crore, up 4% quarter-on-quarter, with GNPA declining to 1.38%. MSME loan AUM grew 11% quarter-on-quarter to ₹11,948 crore, driven by a shift towards secured lending.

Management Commentary

Nirmal Jain, Founder and Managing Director, said Q2 FY27 delivered robust growth with AUM exceeding ₹1.24 lakh crore. He noted that a 90% secured AUM and GNPA of 1.5% reflect strong gold and mortgage franchises, lower credit costs, and improved operating efficiency.

Key Updates

IIFL Finance completed a ₹25 crore tokenised bond transaction, marking it as the first Non-PSU NBFC in India to do so. Fitch Ratings upgraded IIFL Finance's Long-Term Issuer Default Rating (IDR) to 'BB-' from 'B+', with a stable outlook.

Strategic Focus

The company's strategy includes scaling secured lending franchises, expanding co-lending partnerships with banks, and maintaining superior asset quality and capital discipline. IIFL Finance also plans to progress with a proposed equity raise, approved by shareholders in July 2026.

AI Transformation

IIFL Finance is accelerating its AI-led transformation across underwriting, collections, customer engagement, and cross-sell. Voice AI is live in gold-loan sales, AI credit assessment is used for over 85% of SME LAP applications, and AI-powered fraud detection is implemented across all gold-loan branches.

H1 FY27 Performance

Vikas Jain, Chief Financial Officer, said profit after tax (pre-NCI) more than doubled year-on-year to ₹1,518 crore for H1 FY27. This was supported by stronger operating leverage and a 43% reduction in loan losses and provisions year-on-year. The company reported a strong liquidity position of ₹13,805 crore.

Awards and Recognition

IIFL Finance was recognised as an 'ET Iconic Brand of India 2026' and among 'Top 50 India's Best Workplaces for Women 2026'. The IIFL Foundation received the 'Best Innovation in CSR Practices Award' at the 17th Corporate Social Responsibility Summit.

Corporate Governance

IIFL Finance has a Board-level ESG Committee overseeing initiatives, and its Sustainability Report is undergoing external assurance. The company's ESG ratings include CRISIL ESG 66 and S&P Global CSA 46.

Disclaimer: This story is based on company exchange filings and is for informational purposes only. Investors should evaluate risks before making decisions.