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IIFL Finance Q1 net profit drops 19% on higher impairment provisions
Its net interest income (NII) shrank by 3 per cent Y-o-Y to Rs 976.5 crore in Q1FY26 from Rs 1,005 crore in Q1FY25. However, non-fund-based income grew by 74 per cent Y-o-Y to Rs 661.4 crore.
Loan losses and provisions — impairment on financial instruments — more than doubled to Rs 512.46 crore. Gross non-performing assets (NPAs) inched up to 2.3 per cent at the end of June 2025, from 2.2 per cent a year ago. Net NPAs rose to 1.1 per cent from 1.0 per cent in the same period.
IIFL said in a statement that its consolidated loan book grew by 21 per cent Y-o-Y to Rs 83,889 crore. The home loan book rose 14 per cent Y-o-Y to Rs 32,017 crore. The gold loan book expanded by 85 per cent to Rs 27,274 crore, reflecting continued recovery momentum post the Reserve Bank of India (RBI) embargo.
The micro, small and medium enterprises (MSME) loan book expanded by 13 per cent Y-o-Y to Rs 13,939 crore as of June 2025. However, the microfinance book shrank by 26 per cent Y-o-Y to Rs 8,916 crore, impacted by macroeconomic pressures in unsecured lending.
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