IIFL Finance Limited — PPTs, 08-05-2025: Investor Presentation

1. Financial Highlights:

IIFL Finance showed strong recovery with consolidated PAT of ₹251 Cr, up 208% q-o-q but down 42% y-o-y. Loan AUM increased 10% q-o-q to ₹78,341 Cr, down 1% y-o-y. Pre-provision operating profit rose 22% q-o-q to ₹651 Cr but was 35% lower y-o-y. Return on assets improved to 1.6%, ROE reached 7.0%. Asset quality improved with GNPA at 2.2% and NNPA at 1.0%. Liquidity buffer stood at ₹5,216 Cr and capital adequacy ratio was strong at 29.0%. Home loans AUM grew 15% y-o-y; gold loans surged 40% q-o-q post-embargo but declined 10% y-o-y; MSME loans rose 18% y-o-y while microfinance AUM fell 25% y-o-y.

2. Strategic Initiatives & Growth Drivers:

Focus remains on collateral-backed retail lending with MSME loans as the key growth driver, supported by 4,900+ branches and AI-enhanced underwriting. The “phygital” model blends physical presence with digital platforms, boosting efficiency. Capital raising includes $425 million via USD bonds and ₹500 Cr NHB refinance. FY26 targets 15-30% growth across core loan segments, improved ROE (~16%), and sustained margins amid a planned 40% increase in tech spend on AI and digital infrastructure.

3. Business Developments:

No acquisitions announced. Capital position strengthened with a $100 million line from AIIB and proposed credit facilities from NDB and ADB. Compliance focus includes automation of monitoring at branches and new independent board committees. Partnerships with banks and fintechs accelerate MSME lending and customer acquisition.

4. Market Position & Competitive Advantage:

IIFL holds leadership in affordable housing finance with deep reach into semi-urban/rural areas through its extensive branch network. Its integration of AI-powered underwriting and strong physical infrastructure creates scalable growth potential. It benefits from rigorous risk management, robust governance, and stable credit ratings (AA/Stable). The secured retail loan focus and strong balance sheet underpin a solid competitive moat.

5. Investor Implications:

Recovery in earnings and asset quality points to positive growth potential, led by MSME and home loan segments. The scalable phygital model supports cost-efficient expansion with reduced refinancing risk due to strong liquidity and capital. Investors should watch MSME loan growth, gold loan recovery, and execution of tech investments as key return drivers. Maintaining asset quality amid portfolio expansion and tech adoption are execution risks to monitor. Overall, updates suggest improving momentum with measured optimism for FY26.