IIFL Finance Limited (IIFL) reported consolidated Q4FY26 and full year FY26 results that showed continued growth in loans and improvement in asset quality. Consolidated loan assets under management rose to Rs 1,081.8 bn while consolidated capital to risk weighted assets ratio stood at 25.3 per cent. The company reported profit after tax before non-controlling interest of Rs 6.232 bn in the quarter and pre provision operating profit of Rs 11.73 bn. Liquidity was Rs 66.38 bn and net gearing was 3.8x.

Growth was driven by gold loans and mortgages, with gold loan AUM at Rs 525.81 bn and home loan AUM at Rs 321.25 bn, reflecting sequential expansion and a portfolio mix dominated by secured lending. Total consolidated AUM rose 10 per cent quarter on quarter and 38 per cent year on year, supported by a branch network of 4,829 outlets. Off-book assets contributed materially, with off-book AUM of Rs 380.88 bn accounting for 35 per cent of consolidated AUM. Co-lending and direct assignment continued to support capital efficient scale.

Asset quality improved, with consolidated gross non performing assets at 1.5 per cent and net non performing assets at 0.7 per cent, and provision coverage at 93 per cent as at March 31, 2026. The company maintained loan loss provisions well above regulatory requirements and reported total assets of Rs 890.59 bn on a consolidated basis. Yield on the core portfolio remained around 16.29 per cent and interest spread improved sequentially, supporting stronger operating performance. Cost to income trends reflected continued efficiency gains.

The board reiterated a strategy focused on secured priority sector lending, bank partnerships and co-lending to drive capital efficient growth and deeper reach into non-metro and Bharat markets. The company highlighted digital and AI initiatives that are aimed at improving lead conversion, collections and cross-sell, and noted planned rollouts and testing phases during FY27. Management emphasised capital efficiency and branch-led distribution as pillars for sustained growth and maintained disciplined liquidity management. Active partnerships included 12 bank partners for co-lending as the programme scaled.