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IIFL Finance Overview

1. Business Overview

IIFL Finance Ltd. is a leading Indian Non-Banking Financial Company (NBFC) engaged in providing a diverse range of financial products and services. Its core business model revolves around offering credit solutions to various customer segments, including retail, micro, small and medium enterprises (MSMEs), and corporations. The company primarily makes money through interest income generated from its loan portfolio, along with fees and other charges for financial services rendered.

2. Key Segments / Revenue Mix

IIFL Finance operates across several key lending segments. Its major revenue contributors typically include:

Gold Loans: Short-term loans against physical gold collateral, known for quick disbursal.

Home Loans: Primarily focused on affordable housing finance, catering to first-time homebuyers and lower to middle-income groups.

Business Loans (SME Loans): Credit facilities for small and medium enterprises to meet their working capital and growth requirements.

Microfinance: Small-ticket loans to underserved populations, often through a group lending model.

Digital Lending: Increasingly leveraging technology for faster loan processing and wider reach, particularly for personal loans and small business loans.

While precise percentage contributions vary, these segments form the bulk of its Asset Under Management (AUM) and interest income.

3. Industry & Positioning

The Indian NBFC sector is dynamic, highly competitive, and plays a crucial role in financial inclusion by complementing traditional banks. It is characterized by diverse players, including large diversified NBFCs, specialized lenders, and smaller regional entities. IIFL Finance is a well-established and diversified player within this landscape. It holds a significant market share in specific niches, particularly in the gold loan segment, and has a growing presence in affordable housing and SME financing. It positions itself as a customer-centric financial services provider, leveraging a wide branch network and increasing digital capabilities.

4. Competitive Advantage (Moat)

IIFL Finance possesses several competitive advantages:

Brand Recognition: A well-known and trusted brand name in the Indian financial services market, built over decades.

Extensive Network: A wide physical branch presence, particularly crucial for segments like gold loans, enabling deep penetration into semi-urban and rural areas.

Diversified Portfolio: A balanced loan book across multiple asset classes (gold, home, SME, microfinance) reduces concentration risk and provides resilience.

Risk Management Expertise: Experience in navigating various credit cycles in India, with established underwriting processes and collection mechanisms.

Technology Adoption: Increasing focus on digital platforms for customer acquisition, loan processing, and servicing, enhancing efficiency and reach.

5. Growth Drivers

Key factors that can drive IIFL Finance's growth over the next 3-5 years include:

Under-penetration of Credit: India's vast population, especially in semi-urban and rural areas, still has significant unmet credit demand.

Economic Growth: A growing Indian economy fuels demand for retail, SME, and housing credit.

Digitalization: Continued adoption of digital lending platforms and analytics can expand reach, reduce costs, and improve efficiency.

Financial Inclusion Initiatives: Government and regulatory pushes for financial inclusion benefit NBFCs that cater to underserved segments.

Formalization of Economy: Shift from informal lending to formal credit channels as businesses and individuals seek structured financial products.

Affordable Housing Demand: Ongoing strong demand for affordable housing, supported by government schemes.

6. Risks

IIFL Finance, like any NBFC, faces several inherent risks:

Asset Quality Risks: Deterioration in credit quality leading to higher Non-Performing Assets (NPAs), especially during economic downturns or due to concentration in specific segments.

Funding & Liquidity Risks: Dependence on wholesale funding (banks, capital markets); potential for Asset-Liability Mismatch (ALM); sensitivity to interest rate changes affecting borrowing costs.

Regulatory Risks: Changes in RBI regulations for NBFCs, such as capital adequacy norms, lending standards, or fair practices code, could impact operations and profitability.

Competition: Intense competition from banks, other large NBFCs, and emerging FinTech players, potentially leading to margin pressure.

Economic Slowdown: A significant slowdown in the Indian economy could reduce credit demand and increase default rates across all loan segments.

Operational Risks: Risks associated with data security, fraud, and maintaining a vast branch network efficiently.

7. Management & Ownership

IIFL Finance is promoted by Mr. Nirmal Jain, who has a strong track record in the Indian financial services sector. The company has an experienced management team with domain expertise across its various lending segments, having successfully navigated different economic and regulatory environments. As a publicly listed company, ownership is diversified, with the promoter group holding a significant stake, alongside a mix of institutional investors (domestic and foreign) and retail shareholders.

8. Outlook

IIFL Finance is well-positioned to capitalize on India's long-term credit growth story, driven by an expanding economy, increasing financialization, and the ongoing shift towards formal credit. Its diversified portfolio, established brand, and extensive network provide a solid foundation for sustained Asset Under Management (AUM) growth. However, the company faces the inherent risks of the NBFC sector, including potential asset quality challenges, rising funding costs in a high-interest rate environment, and intense competition. Its ability to maintain strong asset quality, effectively manage its cost of funds, and continue leveraging technology for efficiency and risk management will be critical for its profitability and long-term success.

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IIFL Finance Key Financials

Market Cap ₹19387 Cr.

Stock P/E 33.5

P/B 1.4

Current Price ₹455.9

Book Value ₹ 327.3

Face Value 2

52W High ₹675

Dividend Yield 0.88%

52W Low ₹ 401.6

IIFL Finance Share Price

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Volume
Price

IIFL Finance Quarterly Price

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IIFL Finance Peer Comparison

IIFL Finance Quarterly Results

#(Fig in Cr.) Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026
Operating Revenue 2649 2854 2621 2556 2443 2591 2953 3305 3427 3693
Other Income 46 68 12 5 6 3 6 4 5 7
Total Income 2694 2922 2633 2561 2449 2594 2959 3309 3433 3700
Total Expenditure 948 1255 1109 1105 1307 1065 1267 1323 1280 1194
Operating Profit 1746 1667 1524 1456 1142 1530 1692 1986 2153 2506
Interest Expense 985 1063 1042 963 996 1169 1289 1382 1437 1610
Depreciation 45 51 46 46 46 51 47 47 53 64
Profit Before Tax 716 554 436 -140 101 309 356 557 663 833
Provision for Tax 171 123 98 -47 19 58 82 139 162 209
Profit After Tax 545 431 338 -93 82 251 274 418 501 623
Adjustments -55 -57 -50 -65 -41 -44 -41 -42 -37 -36
Profit After Adjustments 490 373 288 -158 41 208 233 376 464 587
Adjusted Earnings Per Share 12.5 9.5 6.8 -3.7 1 4.9 5.5 8.9 10.9 13.8

IIFL Finance Profit & Loss

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 TTM
Operating Revenue 3551 3952 3138 6321 4978 4844 5840 6855 8270 10250 10211 13378
Other Income 13 11 29 187 176 94 150 178 264 256 48 22
Total Income 3564 3963 3167 6508 5154 4938 5990 7033 8533 10505 10259 13401
Total Expenditure 1336 1364 691 2257 1503 1694 2241 2364 3023 3857 4580 5064
Operating Profit 2228 2599 2475 4251 3650 3244 3749 4669 5510 6648 5678 8337
Interest Expense 1445 1690 1786 2730 2593 2413 2638 3011 3245 3896 4196 5718
Depreciation 59 66 16 67 32 106 106 122 153 181 189 211
Profit Before Tax 724 843 674 1448 1130 725 1005 1536 2113 2572 707 2409
Provision for Tax 247 288 226 427 334 222 244 348 505 598 129 592
Profit After Tax 476 555 448 1021 796 503 761 1188 1608 1974 578 1816
Adjustments -29 -44 238 -226 -1 -2 -1 -0 -107 -211 -199 -156
Profit After Adjustments 447 511 686 795 795 502 760 1188 1500 1764 379 1660
Adjusted Earnings Per Share 13.9 14.8 20.9 23.8 24.2 12.9 19.5 30.4 38.3 44.9 8.9 39.1

Growth Rates

# 1 Year 3 Year 5 Year 10 Year
Sales CAGR -0% 14% 16% 11%
Operating Profit CAGR -15% 7% 12% 10%
PAT CAGR -71% -21% 3% 2%
# 1 Year 3 Year 5 Year 10 Year
Share Price CAGR 10% 1% 12% 9%
ROE Average 5% 15% 16% 17%
ROCE Average 8% 11% 11% 11%

IIFL Finance Balance Sheet

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Shareholder's Funds 2558 3352 4382 4743 4354 4760 5388 6464 8992 10637 12412
Minority's Interest 264 744 1255 1500 4 6 6 6 1210 1419 1543
Borrowings 9471 9020 12801 17360 20507 24833 27699 32944 38189 31628 34579
Current Liability 7283 9997 15589 20886 8373 4526 7296 6206 4284 18293 18643
Other Liabilities & Provisions 645 863 1196 -385 -295 6 -33 5 205 275 82
Total Liabilities 20221 23975 35223 44104 32944 34130 40356 45625 52880 62253 67259
Loans 5056 9007 13640 0 0 0 0 0 0 50952 55364
Investments 571 579 1328 1565 212 248 32 1192 3159 3674 3750
Fixed Assets 500 533 605 620 105 393 404 480 566 609 616
Other Loans 971 1206 1365 358 202 272 348 322 317 175 212
Other Non Current Assets 29 17 137 119 8 342 623 1048 1436 1100 954
Current Assets 13095 12633 18147 41191 32152 32662 38664 42270 47098 5447 5491
Total Assets 20221 23975 35223 44104 32944 34130 40356 45625 52880 62253 67259

IIFL Finance Cash Flow

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Opening Cash & Cash Equivalents 1412 1829 1629 3763 272 1275 1566 2643 6212 3630 2470
Cash Flow from Operating Activities -2126 -54 -4329 -10483 422 1101 -3587 1784 -5225 -8716 -4781
Cash Flow from Investing Activities -361 -671 -4165 -374 408 -919 236 -996 -2716 468 -1149
Cash Flow from Financing Activities 2904 525 9094 8468 20 109 4428 2781 5361 7088 5526
Net Cash Inflow / Outflow 417 -200 599 -2389 850 290 1077 3569 -2580 -1160 -403
Closing Cash & Cash Equivalent 1829 1629 2228 1374 1275 1566 2643 6212 3632 2470 2067

IIFL Finance Ratios

# Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Earnings Per Share (Rs) 13.89 14.85 20.9 23.84 24.18 12.88 19.49 30.39 38.3 44.89 8.92
CEPS(Rs) 16.77 19.07 14.16 33.12 25.18 15.64 22.22 33.52 44.94 54.86 18.06
DPS(Rs) 2.91 4.13 4.37 4.85 4.85 2.18 2.91 3.4 3.88 3.88 0
Book NAV/Share(Rs) 79.77 102.66 133.71 143.96 131.85 121.75 137.72 165.03 229.32 269.1 288.46
Net Profit Margin 13.41 14.05 14.27 16.15 15.99 10.39 13.03 17.33 19.44 19.26 5.66
Operating Margin 61.07 64.09 78.39 66.09 74.79 64.78 62.38 66.34 64.79 63.1 48.02
PBT Margin 20.38 21.33 21.47 22.91 22.7 14.97 17.21 22.41 25.55 25.09 6.92
ROA(%) 2.68 2.51 1.51 2.57 2.07 1.5 2.04 2.76 3.26 3.43 0.89
ROE(%) 20.38 18.84 11.6 22.42 17.56 11.1 15.04 20.1 20.83 20.19 5.07
ROCE(%) 14.54 13.89 10.25 12.33 10.65 9.91 10.39 11.39 11.8 12.21 8.12
Price/Earnings(x) 12.5 13.5 18.57 28.67 17.37 5.61 14 9.11 12.38 7.36 36.68
Price/Book(x) 2.18 1.95 2.9 4.75 3.19 0.59 1.98 1.68 2.07 1.23 1.13
Dividend Yield(%) 1.68 2.06 1.13 0.71 1.16 3.02 1.07 1.23 0.82 1.18 0
EV/Net Sales(x) 5.17 5.28 10.59 8.49 7.59 5.64 6.53 5.6 6.33 5.4 5.95
EV/Core EBITDA(x) 8.24 8.02 13.43 12.62 10.35 8.42 10.17 8.22 9.5 8.33 10.7
Interest Earned Growth(%) 25.84 11.29 -20.6 101.45 -21.25 -2.68 20.55 17.38 20.64 23.94 -0.38
Net Profit Growth 63.48 16.56 -19.36 127.95 -22.04 -36.73 51.11 56.18 35.29 22.81 -70.71
EPS Growth(%) 52.35 6.88 40.75 14.06 1.44 -46.72 51.27 55.96 26.02 17.21 -80.12
Interest Coverage(x) % 1.5 1.5 1.38 1.53 1.44 1.3 1.38 1.51 1.65 1.66 1.17

IIFL Finance Shareholding Pattern

# Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026
Promoter 24.79 24.78 24.91 24.91 24.9 24.89 24.87 24.87 24.85 24.85
FII 31.27 29.13 30.31 29.64 27.79 28.03 26.62 26.76 27.76 28.16
DII 8.27 8.6 7.43 6.24 4.48 5.53 8.09 9.13 9.17 7.09
Public 35.67 37.48 37.35 39.2 42.83 41.54 40.42 39.24 38.21 39.9
Others 0 0 0 0 0 0 0 0 0 0
Total 100 100 100 100 100 100 100 100 100 100

IIFL Finance News

IIFL Finance Pros & Cons

Pros

Cons

  • Promoter holding is low: 24.85%.
  • The company has delivered a poor profit growth of 2% over past five years.
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