At a Glance
IIFL Capital posted a Q1 FY26 profit of ₹176 Cr (EPS ₹5.66), with OPM at a solid 36%. Revenue stood at ₹617 Cr, down 3.5% YoY, but still enough to keep the lights on. Stock slid 2.3% to ₹300—probably just investors hitting snooze.
Introduction
Think of IIFL Capital as that overachieving cousin—always diversifying, always making money, but rarely handing out freebies (read: dividends). With ROE at a juicy 33% and ROCE at 35%, it’s flexing harder than your gym trainer, even as promoter holding stays a meek 31%.
Business Model (WTF Do They Even Do?)
IIFL Capital runs the capital market circus—broking, wealth management, financial products, investment banking, and commodities. Add in a sprinkle of PMS (soon in a subsidiary) and IFSC adventures.
Roast: Basically every money game except opening an actual casino.
Financials Overview
- Q1 FY26 Revenue: ₹617 Cr (↓3.5% YoY)
- Net Profit: ₹176 Cr
- OPM: 36%
- ROE: 33.2%
- ROCE: 34.6%
Verdict: Profits healthy, revenue slightly sluggish.
Valuation
- P/E: 13×
- CMP/BV: 3.7×
- Fair Value Range: ₹280–₹340
Cheap on earnings, but watch business growth momentum.
What’s Cooking – News, Triggers, Drama
- Slump sale of PMS business to subsidiary (strategic rejig, minimal impact).
- Two independent directors re-appointed (corporate governance sparkle).
- New IFSC subsidiary incorporated—expansion mode ON.
Balance Sheet
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Assets | 5,237 | 7,875 | 7,956 |
| Liabilities | 5,237 | 7,875 | 7,956 |
| Net Worth | 1,350 | 1,787 | 2,507 |
| Borrowings | 486 | 1,154 | 937 |
Punchline: Leverage is flirting, but not reckless.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | -793 | -118 | 871 |
| Investing | 163 | -74 | -177 |
| Financing | -296 | 430 | -490 |
Snark: Cash flows here play musical chairs—up, down, and unpredictable.
Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE % | 25% | 35% | 33% |
| ROCE % | 23% | 35% | 35% |
| D/E | 0.28 | 0.65 | 0.37 |
Verdict: Returns hotter than chai, leverage under control.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 1,361 | 2,218 | 2,405 |
| Net Profit | 250 | 513 | 713 |
Comment: Double profits in two years—chef’s kiss.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Motilal Oswal | 8,758 | 2,783 | 19× |
| Angel One | 4,973 | 994 | 24× |
| Nuvama Wealth | 4,158 | 985 | 26× |
| IIFL Capital | 2,382 | 706 | 13× |
Humour: The underdog in the broking brawl—cheap and profitable.
Miscellaneous – Shareholding, Promoters
- Promoters: 31% (low but stable)
- FIIs: 17.2% (global money likes it)
- Public: 46.8%
Note: Strong retail base, foreign funds nibbling.
EduInvesting Verdict™
IIFL Capital is delivering profits with consistency and trades at a reasonable valuation. The slump sale and IFSC moves show strategic intent, but promoter holding remains low.
Final Word: Lean, mean, profit machine—just don’t expect fireworks every quarter.
Written by EduInvesting Team | 28 July 2025
SEO Tags: IIFL Capital, Q1 FY26 Results, Broking Business, Wealth Management, Stock Analysis
