1. Opening Hook
After spending most of FY25 apologising to regulators, IIFL Finance walked into Q3FY26 like nothing ever happened. Gold loans didn’t just recover—they kicked the door down. Asset quality cleaned up faster than a politician’s affidavit before elections. Management says this is “sustainable momentum,” markets say “finally.”
From embargo scars to dividend flexing in under five quarters, this concall felt less like damage control and more like victory laps. The unsecured hangover is gone, the balance sheet is on protein shakes, and gold is now the favourite child again.
But before you pop the champagne, remember—this is still an NBFC that recently learned humility the hard way. Read on, because the confidence sounds great… and that’s exactly when investors should start listening carefully.
2. At a Glance
- PAT ₹501 Cr (+20% QoQ) – Profits bounced harder than a gold price rally.
- AUM ₹98,336 Cr (+9% QoQ) – Growth is back, and it brought collateral along.
- Gold loan AUM +26% QoQ – Turns out shiny things still work in India.
- GNPA down to 1.6% – Bad loans quietly shown the exit door.
- ROA 2.5%, ROE 14.3% – Respectable numbers, not influencer-level yet.
- Interim dividend ₹4/share – Management celebrating before dessert.
3. Management’s Key Commentary
“The quarter marks a shift from stabilisation to sustainable operating momentum.”
(Translation: We survived. Now please forget
FY25 ever happened.) 😏
“Gold loans are fully normalised post-embargo.”
(Translation: RBI stopped glaring, so we’re back to business.)
“We exited high-risk unsecured MSME and micro-LAP segments.”
(Translation: YOLO lending is officially cancelled.)
“Asset quality improvement is broad-based across portfolios.”
(Translation: NPAs are finally behaving like disciplined children.)
“Provision coverage stands at 92%.”
(Translation: We are over-prepared because trauma stays.)
“AI-led risk and governance systems are central to our strategy.”
(Translation: If anything goes wrong, blame the algorithm.) 🤖
“Ratings outlook revised to Positive by S&P.”
(Translation: Global investors are slowly forgiving us.)
4. Numbers Decoded
Metric Q3FY26 QoQ Trend
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Loan AUM ₹98,336 Cr +9%
Gold Loan AUM ₹43,432 Cr +26%
PAT (Pre-NCI) ₹501 Cr +20%
GNPA 1.6% ↓54 bps
NNPA 0.8% ↓27 bps
Cost-to-Income 46.4% ↑126 bps
CRAR (Consolidated) 27.7% Fortress mode
Liquidity ₹9,433 Cr No stress
- Growth is real, but gold is doing the heavy
