IIFL Finance Loan Portfolio Rises 38% to 124,268 Crore Rupees in Second Quarter
Key Facts
IIFL Finance’s managed loan portfolio stood at about 124,268 crore rupees in the second quarter of fiscal 2027, up 38% year over year and 8% from the previous quarter, according to company data. The figure puts growth in the quarter ended in September and does not describe a separate growth rate for the entire first half. Chairman and Managing Director Nirmal Jain said assets under management exceeded 1.24 lakh crore, with gross non-performing assets at 1.5%. The company also said secured loans accounted for 90% of its managed loan portfolio. Together, these indicators show portfolio expansion alongside information on its composition and asset quality.
The company’s net revenue was 2,340 crore rupees in the second quarter of fiscal 2027, while profit after tax, before minority interest, came to 805 crore rupees. Profit rose 13% from the previous quarter, according to the company’s quarterly results. For the first half, earnings per share were 33.80 rupees, a figure that is not annualized. Return on equity, annualized for the first half, was 20.1%, while annualized return on assets was 3.1%. These figures present quarterly results alongside profitability indicators for the first half, each covering a different time frame.
The company attributed return on equity above 20% to the strength of its gold loan and housing finance businesses, lower credit costs and improved operating efficiency. It linked the performance of these two businesses to the return metric, alongside the effect of credit costs and efficiency, without attributing a specific result to any single factor. In its presentation, it said, "Return on equity above 20% reflects the strength of the gold and housing finance businesses, lower credit costs and improved operating efficiency." The explanation comes in the context of a portfolio dominated by secured lending, which accounted for 90% of managed loan assets in the second quarter. Jain also said gross non-performing assets stood at 1.5% in the same period.
On the distribution of growth across products, the company said gold loan growth is expected to moderate, while housing loans and secured lending to small and medium-sized businesses are expected to gain momentum. Jain said, "As gold loan growth moderates, we expect housing loans and secured lending to small and medium-sized businesses to gain momentum." The outlook points to an expected shift in products’ contributions as gold growth slows, according to the company’s management. The statement did not specify a separate timing for this shift within the fiscal year. The company expects to continue delivering resilient, capital-efficient growth in fiscal 2027.