IIFL Capital Services Q2FY26 Concall Decoded: “Broking Blues, Wealth Dreams & the 2bps Panic” 📉💼

1. Opening Hook

When SEBI floated the 2bps brokerage proposal, the entire broking world nearly fainted. But IIFL’s management calmly said, “Let’s not panic—yet.” With flat profits, falling fees, and an expanding army of RMs trying to become wealth whisperers, the quarter was less “bull market” and more “bullish patience.”

The CFO blamed MTM losses, the MD invoked India’s $8-trillion future, and both prayed that F&O traders never find other hobbies. Read on—because the fun begins when brokerage caps meet brokerage dreams. 🐂

2. At a Glance

• Revenue ₹592 cr, down 8% YoY: F&O traders blinked; revenue vanished.
• Retail Equities ₹271 cr: Up 3% QoQ, down 24% YoY — regulators took the remote.
• Institutional Income ₹186 cr: Flat party, no confetti.
• Distribution Income ₹130 cr: Down 10% QoQ — festive season skipped this one.
• Employee Cost ₹154 cr: Variable pay took a vacation.
• Operational PBT ₹164 cr: Flat on QoQ, flatter on enthusiasm.
• Market share 0.64%: Still holding, despite louder competitors.

3. Management’s Key Commentary

“India’s economy has shown resilience despite global trade tensions.”
(Translation: Everyone’s worried about China; we’re worried about brokerage caps.) 😏

“Consolidated revenue fell 8%, mainly due to regulatory norms on F&O.”
(Translation: Thanks, SEBI, for making us all introverts.)

“Employee cost dropped due to lower variable pay.”
(Translation: The bonus pool met Gandhian austerity.)

“We have 55 wealth RMs and 450 retail RMs upgrading skills.”
(Translation: Everyone’s learning to sell PMS instead of panic.)

“Cross-sell AUM is ₹44,000 crores – 60% ARR, 40% non-ARR.”
(Translation: Half recurring, half recurring headaches.)

“Our tech is 80% ready; the rest is on Excel and hope.”
(Translation: Engineers are still debugging dreams.) 🧠

4. Numbers Decoded