1. Opening HookWhile the world argues about whether AI can replace humans, IIFL’s gold loan division quietly replaced their last year’s gloom with glitter. Post the RBI embargo era, the company’s vaults seem shinier than Diwali lights. But as every Gita verse reminds us—“Karmanye vadhikaraste, ma phaleshu kadachana”—do your duty, not chase results. Well, IIFL clearly chased both. 😏Read on—because the numbers are as heavy as their gold collateral.
2. At a Glance
- AUM up 35%:Gold is literally back in fashion—record ₹90,122 crore.
- PAT ₹418 crore (+52% QoQ):Embargo who? Momentum’s back.
- Pre-Provision Profit ₹1,033 crore (+38% YoY):Minted more than just coins.
- GNPA at 2.1%:Shaved 21 bps; not bad for a melting pot of loans.
- Capital adequacy 28.2%:They’ve got more cushion than a wedding pandal.
- Net gearing 3.6x:Leverage in moderation—just like masala in biryani.
- Liquidity ₹8,000+ crore:Dry powder? Nope. Liquid gold.
3. Management’s Key Commentary
“India continues to stand out with strong domestic demand.”(Translation: While the world sweats, we’re sunbathing in demand.)☀️
“Gold loan business has fully normalized post-embargo.”(Translation: RBI said ‘you may proceed,’ and the vaults exploded.)
“AI-driven underwriting is scaling well.”(Translation: Robots are now deciding who gets your home loan.)🤖
“Loan losses to decline to 2.2–2.4% in H2.”(Translation: Our mistakes are now statistically acceptable.)
“Co-lending book up 40% YoY.”(Translation: We’re best friends with banks again—until guidelines confuse everyone.)
“Welcome Girish Kousgi as CEO of IIFL Home Finance.”(Translation: New captain on deck—let’s hope this ship stays golden.)
“Fitch upgraded our outlook to Positive.”(Translation: Someone abroad finally noticed we’re not dying.)😎
4. Numbers Decoded
| Metric | Q2 FY26 | QoQ / YoY | Commentary |
|---|---|---|---|
| AUM | ₹90,122 Cr | +7% QoQ / +35% YoY | Driven by gold & home loans |
| Gold Loan AUM | ₹34,577 Cr | Record high | Shines brighter post-embargo |
| Gross NPA | 2.1% | ↓21 bps QoQ | Cleaner than last quarter |
| Net NPA | 1.0% | ↓11 bps QoQ | Credit filters working |
| Pre-Provision Profit | ₹1,033 Cr | +23% QoQ | Fat margins despite cost |
| PAT | ₹418 Cr | +52% QoQ | Profit found its rhythm |
| Liquidity | ₹8,174 Cr | Stable | Fully loaded |
| ROE | 11.9% | + | Decent for an NBFC reborn |
Off-book loans now form 34% of AUM—translation: half the fun, half the balance sheet risk.
5. Analyst Questions
Q:Gold loan outlook?A:Momentum strong, maybe taper—but we’re glowing.(Translation: Depends on gold prices and luck.)
Q:LAP asset quality falling?A:Legacy cleanup; small base looks ugly.(Translation: We stopped new disbursement, now only ghosts remain.)
Q:Co-lending slowdown?A:Blame the new RBI guidelines; banks rebooting systems.(Translation: Bureaucracy strikes again.)
Q:Any ARC transactions?A:Just a small one. Maybe more next quarter.(Translation: Still window-shopping for ARCs.)
6. Guidance & OutlookManagement expects loan losses to moderate to2.2–2.4% in H2, with the
