IIFL Finance Reports Strong Profit Turnaround; IIFL Home Finance Appoints New MD

IIFL Finance Ltd announced a substantial turnaround in its financial performance for the September quarter (Q2). The company posted a net profit of ₹376.3 crore, a remarkable improvement compared to a net loss of ₹157 crore reported during the same period last year. This recovery was primarily driven by reduced provisioning expenses and consistent loan growth.

The Net Interest Income (NII), a key measure of a lender's profitability, saw a year-on-year increase of 6.1%, rising to ₹1,439 crore from ₹1,355 crore. This growth reflects the company's expanding lending operations.

The strong performance is underpinned by robust demand in its key business segments, particularly retail and gold-backed loans, which continue to constitute a substantial portion of IIFL Finance's overall loan portfolio.

In a separate development, IIFL Home Finance Ltd, a subsidiary of IIFL Finance, has appointed Girish Kousgi as its new Managing Director and Chief Executive Officer. His tenure officially begins on October 30, 2025. Kousgi is a seasoned professional with nearly three decades of experience in the banking and financial services sector, having previously led entities like PNB Housing Finance and Can Fin Homes.

Kousgi's appointment is strategically aimed at bolstering IIFL's leadership in the affordable housing finance sector. His expertise is expected to accelerate growth across home loans, Micro, Small and Medium Enterprises (MSME) financing, and construction finance segments.

IIFL Finance, along with its subsidiaries, serves a vast customer base of over 8 million individuals through an extensive network of more than 4,900 branches spread across India.

Impact: This news is significant for investors as it signals a strong recovery in IIFL Finance's profitability and strategic expansion plans under new leadership within its housing finance arm. The improved financial health and focus on growth segments can positively influence investor sentiment and stock performance. Rating: 7/10

Definitions: Net Profit: The profit remaining after all expenses, taxes, and costs have been deducted from total revenue. Net Interest Income (NII): The difference between the interest income generated by a bank or financial institution and the interest it pays out to its lenders. Provisions: Funds set aside by a company to cover potential future losses or expenses, such as loan defaults. Lower provisions mean less money is being set aside, indicating improved confidence or reduced risk. Loan Growth: The increase in the total amount of money lent out by a financial institution over a specific period. Subsidiary: A company that is owned or controlled by another company, known as the parent company. Managing Director (MD) and Chief Executive Officer (CEO): Top executive roles responsible for managing the company's overall operations and strategic direction. Affordable Housing: Housing that is considered affordable to households with low to moderate incomes. MSME: Micro, Small and Medium Enterprises - businesses that fall within specific thresholds for investment and annual turnover. Construction Finance: Loans provided to developers or builders to finance construction projects.