IIFL Finance Q2 profit nearly doubles to Rs 805 crore; AUM rises 38%
AgenciesAssets under management rose 38% year-on-year to Rs 1.24 lakh crore, driven largely by strong growth in gold loans.
Gold loans remained the main growth engine. Gold-loan AUM surged 90% year-on-year and 13% sequentially to Rs 65,729 crore, with gross NPA at 0.90%. Home-finance AUM stood at Rs 43,070 crore, up 11% quarter-on-quarter to Rs 11,948 crore. Microfinance AUM was broadly flat sequentially at Rs 9,489 crore.
"We expect profitability and growth momentum to continue and remain strong given the positive credit environment and operating leverage from our network,” said Vikas Jain, CFO, IIFL Finance. "Largely yield is flattish but lower credit cost and efficiency thru lower opex to AUM has helped to rise in net profit," he added.
For the first half of FY27, profit after tax before non-controlling interest more than doubled year-on-year to Rs 1,518 crore, supported by a 43% decline in loan losses and provisions. The company had liquidity of Rs 13,805 crore and a consolidated capital adequacy ratio of 23.5%.
During the quarter, IIFL Finance also completed a Rs 25-crore tokenised bond transaction, which it said made it the first non-PSU NBFC in India to undertake such a transaction.