IIFL Finance Limited (IIFL)
Small CapFinancial Services stocks · Small cap · NSE
IIFL Finance Limited, a leading retail-focused NBFC, offers diversified loan products including home, gold, MSME, microfinance, and capital market finance through its subsidiaries. With 4,937 branches, it leverages a phygital model to serve underserved segments across India.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, while price trend supports entry. This looks more like momentum/speculation than a clean fundamental investment setup.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Excellent · 85/100Rev +33% YoY · PAT +160% YoY · +6% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,919 Cr | +32.7% | +6.2% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹713 Cr | +160.2% | +14.4% |
| PAT margin | 18.2% | +891 bps | +132 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
IIFL Finance reports strong Q1FY27 with PAT (pre-NCI) up 160% YoY to 713.1 Cr and AUM growing 38% YoY to 1,15,523 Cr, driven by secured lending focus. PPOP rose 50% YoY, reflecting operating leverage and improved asset quality.
Strong Q1FY27 performance with robust AUM and PAT growth, driven by secured lending and improved operating efficiency. Management's strategic focus on capital-light growth via co-lending and AI-led operations supports future targets. Asset quality metrics show a slight QoQ uptick but are significantly better YoY.
AUM Mix by Product (Q1FY27)
Latest issuer-disclosed distribution across 5 reported categories.
Gold Loans
Gold loans have powered growth and remain a core engine, with AUM surging 114% YoY and 11% QoQ to 58,406 Cr.
Mortgages (Home Finance)
Mortgages are expected to gain momentum, aligning with the strategic focus on secured lending.
Secured MSME Lending
Continued shift towards secured MSME lending, with MSME AUM growing 9% QoQ to 10,808 Cr, improving risk profile.
Co-lending Partnerships
Co-lending partnerships enable capital-light growth, with 1.55 lakh Cr cumulative DA + co-lending originations since FY14 and zero losses reported.
New Branch Openings
IIFL Finance Standalone opened 113 new branches in Q1FY27.
Strategic Focus on Secured Lending
Company delivered robust growth driven by a strategic focus on secured lending and disciplined portfolio rebalancing.
AI-Led Operating Model
AI-led operating model is driving productivity and risk management across underwriting, collections, and customer engagement.
Deepening Bank Partnerships
Deepening bank partnerships support resilient, capital-efficient growth, with 15 active co-lending partners and 14,630 Cr sanctioned limits.
Strong Liquidity Position
Company maintains a strong liquidity position of 7,148 Cr and successfully raised US$500 mn through Social Bonds issuance.
Asset Quality Trends
Gross NPA and Net NPA both increased by 9 bps QoQ, indicating a need for continued monitoring despite YoY improvements.
Execution of AI Transformation
Ambitious targets for AI projects over 2-3 years, aiming for 15-25% people productivity and 10-40% loss prevention, carry execution risk.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
For NBFCs, both sequential (QoQ) and annual (YoY) comparisons are crucial. QoQ shows immediate momentum in disbursements, asset quality trends, and operational efficiency, while YoY provides a broader view of growth and profitability trends, especially for a business with potential seasonality or longer-term strategic shifts.
Consolidated AUM Growth
Consolidated AUM grew to 1,15,523 Cr, up 7% QoQ and 38% YoY.
Gold Loans AUM Growth
Gold loan AUM surged to 58,406 Cr, up 11% QoQ and 114% YoY, emerging as the primary growth driver.
Consolidated Interest Spread
Interest Spread at 7.48% in Q1FY27, up from 7.32% QoQ and 6.66% YoY.
Consolidated Cost of Borrowing
Total Cost of Borrowing was 9.05% in Q1FY27, up from 8.97% QoQ but down from 9.50% YoY.
Transformation Showing Results
Mr. Nirmal Jain states Q1FY27 demonstrates the company's transformation is now showing results, with a decisive return to best-in-class profitability.
Confidence in FY27 Growth
Mr. Nirmal Jain expresses confidence in delivering resilient, capital-efficient growth through FY27, leveraging a robust balance sheet, AI-led model, and bank partnerships.
Disciplined Cost Management
Mr. Vikas Jain (CFO) highlights disciplined cost management and improving operating leverage, even while investing in growth.
Focus on Capital Planning
Mr. Vikas Jain (CFO) looks forward to bringing continued rigor to cost discipline and capital planning through FY27.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Consolidated AUM Growth | 7% QoQ, 38% YoY ( 1,15,523 Cr) | Achievement of ~25% AUM growth target for FY27. |
| Consolidated Asset Quality (GNPA/NNPA) | GNPA 1.6% (up 9 bps QoQ), NNPA 0.8% (up 9 bps QoQ) | Stabilization or improvement in QoQ asset quality trends, particularly in Gold and Home Loans. |
| Off-Book Loan Assets Mix | 35% of AUM | Progress towards the 35-40% off-book mix target for FY27, indicating capital-light growth. |
| Return on Assets (ROA) / Return on Equity (ROE) | ROA 3.1%, ROE 19.5% | Sustaining ROA of 3.1-3.3% and ROE of 16-20% for FY27. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
77Bullishfull bull SMA stack · SMA20 +10.8% / mo · MACD −
Technical chart
IIFLdaily · 1Y · AUTO+32.5%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 57. Wait for confirmation.
- Price > SMA20 > SMA50 > SMA200 — full bullish stack.
- SMA20 rising (~9.7% over last month) — short-term momentum positive.
- RSI(14) at 57 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 8% off 52W high · 59% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 25.9% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +2.0%.
- Both 3-month and 6-month returns are positive.
Valuation & score drivers
U-Score 32 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 32 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 52.5%.
- Valuation contributes 16/30 to the score.
- Growth contributes 10/25 to the score.
Main drags
- Altman Z is 0.5, in distress territory.
- Balance sheet is weaker at 0/15; verify the latest quarterly trend.
- Quality is weaker at 3/20; verify the latest quarterly trend.
NBFC valuation: P/B, ROA, borrowing cost, and asset quality
Lenders can look optically cheap before credit losses emerge, so valuation is tied to book quality.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +4 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Weak Trust: Claim history is still being built. It ranks around the 10th percentile of the scored universe and 15th percentile within Financial Services. Main check: balance sheet trust is weak at 22/100.
Mixed Trust Lite: Promoter pledge is zero. Key concern: Operating cash flow is negative at ₹-13976 Cr.
Management or financial behaviour needs caution. Demand stronger valuation compensation.
overall median 67 · Financial Services: 15th pctile, median 62 · Small: 12th pctile, median 66
137 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Weak Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸3/4 latest quarters had positive YoY PAT growth.
- ▸Latest 3 quarters had positive YoY PAT growth.
Trust risks
- ▸Operating cash flow is negative at ₹-13976 Cr.
- ▸Debt/equity is 4.97.
- ▸Altman Z is 0.50.
- ▸Promoter holding is only 24.8%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 13.20
- P/B
- 1.99
- EV/EBITDA
- 428.65
- Market Cap
- 27699.00Cr
Profitability
- ROE
- 12.60%
- ROCE
- 10.90%
- ROA
- 2.54%
- Dividend Y
- 0.61%
Growth (CAGR)
- Revenue 5Y
- 18.00%
- EPS 5Y
- 17.00%
- Revenue 3Y
- 17.00%
- EPS 3Y
- 3.00%
Balance Sheet
- Debt/Equity
- 4.97
- Interest Coverage
- —
- Altman Z
- 0.50
- Book Value
- 327.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 3/5
- OCF
- -13976.00 Cr
- EPS TTM
- 49.45
Shareholding
- Promoter Hold
- 24.84%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 82%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
Business-comparable names in Financial Services, ranked by similarity
Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.