IIFL Finance Reports Robust FY26 Results and Major Fundraising Plan

IIFL Finance's consolidated profit after tax (PAT) for FY26 surged by 64.5% to ₹623.26 crore, up from ₹378.77 crore in the previous fiscal. Consolidated profit before tax stood at ₹832.66 crore.

Strong Financial Performance in FY26

The company's Board of Directors met on April 29, 2026, to approve the audited financial results for the fiscal year ended March 31, 2026. IIFL Finance posted a consolidated profit after tax (PAT) of ₹623.26 crore, a substantial rise from ₹378.77 crore in FY25. Standalone PAT reached ₹508.90 crore.

Plans for Growth and Funding

To fuel expansion, IIFL Finance plans to raise up to ₹10,000 crore in FY2026-27 by issuing Non-Convertible Securities on a private placement basis, pending shareholder approval.

Governance and Leadership Updates

The board also approved the appointment of Shah Gupta & Co. as a Joint Statutory Auditor for a three-year term, serving alongside the existing auditors. Mr. Vinay Agrawal was appointed as the new Business Head for the Loan Against Property vertical.

Strategic Significance of Moves

The significant PAT growth highlights strong operational performance and effective strategy execution. The planned ₹10,000 crore fundraise is a key step for the non-banking financial company (NBFC) to support ongoing asset growth and expansion. Appointing a joint auditor and a new leader for a key segment signals a focus on strengthening governance, compliance, and strategic business verticals, especially while tax assessments are ongoing.

Company Context and Tax Scrutiny

IIFL Finance is a leading NBFC active in gold loans, housing finance, microfinance, and commercial finance. The company has historically used various funding sources, including public NCD issuances, to expand its balance sheet and maintain capital adequacy.

In January 2025, the Income-tax Department conducted searches across several IIFL Group locations, reportedly investigating potential tax evasion. IIFL Finance has stated its full cooperation with authorities and believes the proceedings will not materially affect its operations.

Future Outlook and Risks

Shareholders can expect a substantially stronger capital base for the company in the coming fiscal year, which will support further growth in assets under management (AUM). The dual audit structure is expected to improve transparency and strengthen oversight of financial reporting and internal controls. Leadership expansion in the Loan Against Property vertical is anticipated to drive focused growth and operational efficiency.

The ongoing assessment proceedings by the Income-tax Department represent a potential risk. However, management has indicated they do not expect a material adverse impact.

Peer Performance Comparison

While IIFL Finance's FY26 PAT of ₹623.26 crore represents strong percentage growth, it is smaller in absolute terms compared to major industry players. For FY26, Bajaj Finance reported a PAT of approximately ₹11,100 crore, and Shriram Finance recorded around ₹4,800 crore. This comparison positions IIFL Finance as a growing player striving for greater scale.

Key Financials and Next Steps

Key metrics for FY26 include a 64.5% increase in Consolidated Profit After Tax (PAT) and a 17.8% rise in Consolidated Profit Before Tax (PBT) compared to FY25. Investors will be watching for shareholder approval of the ₹10,000 crore Non-Convertible Securities issuance, the outcome of the ongoing Income-tax assessment proceedings, performance updates from the Loan Against Property segment under new leadership, and the effectiveness of the joint audit structure.