1. At a Glance

Once upon a Dalal Street dream, there wasIIFL Securities Limited— a hustler broking arm that wanted to look less like a trader and more like a capital market Brahma. So, in November 2024, it pulled a filmi rebrand —IIFL Capital Services Ltd. Same DNA, same desks, but with a sleeker name that sounds like it runs hedge funds out of Singapore.

At ₹338 a share (as of November 7, 2025), with a market cap of ₹10,483 crore, this old IIFL warrior is showing off its 33.3% ROCE and 31.6% ROE, like a mutual fund influencer flaunting CAGR screenshots. Sales in Q2 FY26 were ₹592 crore, down from ₹645 crore last year (YoY -8.2%), while PAT slipped to ₹85 crore from ₹205 crore last year — a 58% knockout punch.

Still, for a company that has lived through SEBI raids, tax notices, and F&O penalties, it’s strutting around with a P/E of 17.9 — eerily close to the industry’s 17.4 — saying, “Main toh consistent hoon.”

The broking margins remain elite, with an OPM of 37.5% and a Dividend Yield of 0.89%. Over 5 years, profits grew at a stunning 34.7% CAGR. But the latest quarter screams a reminder: even the market’s brokers can get margin-called by volatility.

2. Introduction – When Brokers Start Needing Therapy

If the broking industry were a Bollywood family, IIFL Capital would be that cousin who made it big early, diversified everywhere, and now wants to sound more serious than his younger tech-driven rival Angel One. Founded in 1996, this is the OG broking child of the IIFL Group — the same family that spawned 5paisa, IIFL Finance, and enough subsidiaries to confuse even SEBI interns.

The name change fromIIFL SecuritiestoIIFL Capital Servicesin November 2024 wasn’t just rebranding — it was symbolic. The company wanted to move away from being seen as a basic equity broker to becoming a diversified financial ecosystem. After all, when your clients are managing crores, “Capital Services” sounds classier than “Securities Limited,” right?

Yet, FY25 was not all smooth. From NSE penalties (₹5 lakh here, ₹2.59 lakh there) to aSearch and Seizure Operationby the Income Tax Department in January 2025, this company’s year could be a Netflix financial thriller. Add in a leadership shake-up — the resignation of the MD in March 2025 and new appointments — and you get boardroom masala served hot.

But drama aside, the core engine — its retail and institutional broking — continues to hum. Despite a 9% fall in stock price over the past year, the firm’s 69% gain over 3 years shows resilience. It’s like a broker saying, “Bhai, short-term pain for long-term compounding.”

3. Business Model – WTF Do They Even Do?

Let’s decode this labyrinth.

IIFL Capital runs five key verticals, each trying to look more sophisticated than the last:

1. Retail Broking (29% of FY24 revenue):The bread and butter. It serves retail and HNI clients trading equities, derivatives, currencies, and commodities. Retail brokerage income grew 57% from FY22 to FY24. Margin funding? Oh, that grew too — MTF book ballooned from ₹5.4 bn to ₹12.6 bn.Translation: Indian traders are borrowing more to lose faster, and IIFL is happy to lend them the bullets.
2. Financial Product Distribution (17%):Mutual funds, PMS, AIFs, insurance — basically every commission-bearing instrument known to mankind. Revenue grew a whopping 83% in two years. MF AUM shot from ₹71 bn in FY22 to ₹155 bn in H1 FY25.
3. Institutional Broking (17%):Serves 930+ clients globally, including funds from Singapore, London, and New York. With 43 analysts tracking 281 stocks, they cover 71% of India’s market cap. Translation: They know everything except when their own stock will fall.
4. Investment Banking (10%):The cool kid. FY24 saw 59 transactions, including biggies like Bajaj Housing Finance’s ₹6,560 crore IPO and PNB’s ₹500 crore QIP. That’s a 49% growth in revenue since FY22. Even Q2 FY25 had 13 deals — the hustle is real.
5. Other Businesses (27%):Includes subsidiaries dabbling in insurance and real estate broking. You know, because no one wants to leave any financial stone unturned.

AUM across all verticals now sits at ₹2,463 bn