IIFL Finance Q4FY26: PAT jumps 148%, AUM up 38%

Stock moves as results land

IIFL Finance shares rallied sharply on Wednesday after the non-banking finance company reported stronger results for the March 2026 quarter (Q4FY26). The stock rose nearly 6% to an intraday high of ₹473 on the NSE. Around 12:20 PM, it was trading about 3% higher at ₹460 versus the previous close of ₹447.

The broader market was weak during the same window, with the NSE Nifty50 quoted at 23,891.25, down 286 points or 1.18%. IIFL Finance’s market capitalisation was reported at ₹19,578 crore.

Price context: 52-week low and YTD performance

The report also flagged the stock’s mixed performance across timeframes. It said the share price has surged around 40% from its 52-week low of ₹473 touched on May 7, 2025. On a year-to-date basis, the stock price has declined nearly 27%, compared to a 7% decline in the Nifty50.

These moves mattered because the Q4 print arrived at a time when investors are closely tracking asset quality and growth for NBFCs, especially those with significant secured lending exposure.

AUM growth stays strong

For Q4FY26, IIFL Finance reported consolidated assets under management (AUM) of ₹1,08,180 crore. That was up 10% quarter-on-quarter and 38% year-on-year, according to the disclosure.

Management commentary pointed to secured lending as a key driver, with specific mention of strong growth in gold loans and stable performance in mortgages. The company also highlighted capital efficiency as a focus area.

Profit jumps; sequential momentum continues

Profit after tax (pre-minority interest) stood at ₹623.2 crore in Q4FY26. This was up 148% year-on-year from ₹251.4 crore in the year-ago period and up 24% from ₹501.4 crore in the previous quarter.

A separate brokerage note included in the provided material reported PAT (post NCI) at about ₹590 crore in Q4FY26, and FY26 PAT (post NCI) at about ₹1,660 crore (versus about ₹380 crore in FY25). The same note also stated FY26 PAT (pre NCI) at ₹2,408.6 crore, up 241% year-on-year.

Asset quality and balance-sheet metrics

The company reported improving asset quality in Q4FY26. Gross non-performing assets (GNPA) declined to 1.5%, down 14 basis points from Q3FY26. Net non-performing assets (NNPA) came in at 0.7%, down 2 bps from 0.8% in Q3FY26.

Provision coverage ratio (PCR) strengthened to 93%. Return on assets (RoA) and return on equity (RoE) were reported at 2.4% and 13.1%, respectively.

Liquidity remained a highlighted comfort point, with a strong liquidity position of ₹6,638 crore and a consolidated capital adequacy ratio (CRAR) of 25.3%.

What the detailed quarterly financials show

Additional line items in the material offered a closer look at operating performance in Q4FY26. Consolidated interest income was ₹2,773.4 crore (up 9% QoQ), while net interest income was ₹1,163.8 crore.

The brokerage note stated net interest income (NII) grew 31% YoY to about ₹1,720 crore, while other income was about ₹370 crore (and compared it with ₹410 crore in Q3FY26). It also reported net total income at about ₹2,090 crore, operating expenses at about ₹930 crore, and a cost-to-income ratio at about 45% (versus 47% in the prior quarter and 53% in the year-ago quarter). Pre-provision operating profit (PPoP) was reported at about ₹1,160 crore.

Motilal Oswal: Buy intact, target ₹600

Motilal Oswal Financial Services (MOFSL) said the quarter was healthy, led by strong momentum in gold loans, supported by robust demand and favourable gold prices. It also said the microfinance (MFI) business showed signs of recovery with improving growth and better asset quality.

MOFSL noted that IIFL’s exit from riskier segments such as micro-LAP and personal loans helped reduce credit costs sequentially. The brokerage raised its FY27 EPS estimate by around 6%, citing higher other income from assignments and co-lending, along with slightly stronger AUM growth.

MOFSL maintained a Buy rating and a target price of ₹600, based on a sum-of-the-parts valuation. It added that the stock trades at 1.2x FY27E price-to-book and around 8x price-to-earnings, with an estimated RoA of 2.7% and RoE of 18% in FY28.

Management commentary: secured lending, AI, co-lending

Nirmal Jain, founder and managing director at IIFL Finance, said the Q4FY26 performance reflects the strength of the company’s strategic direction and disciplined execution. He pointed to the focus on secured lending, portfolio quality, and capital efficiency.

He also said the company has strengthened its balance sheet, improved asset quality, and built a scalable operating model anchored in AI and co-lending partnerships. Jain added that the company is positioned to deliver sustainable, high-quality growth as it moves into FY27 while serving underserved segments.

Dividend and full-year numbers

The company said an interim dividend of ₹4 per equity share declared in January 2026 was considered final for FY 2025-26.

For FY26, consolidated revenue from operations was ₹13,350.8 crore, up from ₹10,210.9 crore in FY25. Consolidated net profit after tax for FY26 was ₹1,816.7 crore, compared with ₹578.2 crore in FY25. It also reported FY26 PPOP of ₹4,303.8 crore, up 8% YoY, and book value per share of ₹318.8, up 11% YoY.

Key figures at a glance

Why the Q4FY26 update matters

The quarter reinforced two themes investors have been tracking for IIFL Finance: the ability to scale secured products such as gold loans and mortgages, and the pace of improvement in asset quality. The data points on GNPA, NNPA, and PCR, along with liquidity and capital adequacy, were central to the market’s reaction.

The disclosures and brokerage commentary also kept attention on the mix shift away from riskier products and toward assignments and co-lending as drivers of fee and other income. For investors, the next set of updates will likely focus on whether the AUM growth pace sustains into FY27, and whether profitability metrics remain aligned with the company’s stated approach.

Conclusion

IIFL Finance’s Q4FY26 results showed strong profit growth, expanding AUM, and improved reported asset quality, supporting a sharp move in the share price even as the broader market traded lower. Motilal Oswal retained its Buy rating with a ₹600 target, while management reiterated its focus on secured lending, portfolio quality, AI-led operating improvements, and co-lending partnerships.