1. At a Glance
Once the darling of India’s lending boom, IIFL is now a highly-leveraged NBFC juggling NCDs, tax raids, and falling profits. FY25 profit slumped 70%, but hey, they’ve got 80 lakh customers and just opened branches in J&K!
2. Introduction with Hook
If Bajaj Finance is the Salman Khan of NBFCs—flashy, dominant, and in-your-face—IIFL is that underdog cousin with debt problems and a big heart.
- AUM doubled in 4 years: ₹76,700 Cr in FY24 from ₹37,900 Cr in FY20
- Net Profit FY25: ₹578 Cr (down from ₹1,974 Cr in FY24!)
- Stock P/E: 40.4 — for a company whose profits just faceplanted
Is this a mispriced value trap or a deep turnaround play waiting to be rediscovered?
3. Business Model (WTF Do They Even Do?)
IIFL is a diversified NBFC that lends money like a startup spends VC funds—fast, wide, and sometimes reckless.
Loan Types:
- Gold Loans
- Home Loans
- Microfinance
- Developer Finance
- Capital Market Lending
- Business Loans
Branches? 4,800+
Customers? 80 lakh
Recent Stunt? All-women “Shakti” branches. Cute branding, serious scale.
4. Financials Overview
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 8,444 | 10,472 | 10,234 |
| Net Profit (₹ Cr) | 1,608 | 1,974 | 578 |
| EPS (₹) | 35.49 | 41.60 | 8.92 |
| ROE (%) | 19% | 18% | 5% |
| Financing Margin (%) | 27% | 26% | 14% |
| AUM (₹ Cr) | ~62,000 | ~76,700 | ~79,000* |
From a profit-making machine to a sobbing mess in one year flat. What’s cooking?
5. Valuation
Let’s slap some valuation math.
- EPS: ₹8.92
- P/E: 40.4
- Market Cap: ₹22,789 Cr
- Book Value: ₹292 → P/B = 1.8x
Fair Value Band (assuming recovery to ₹1,200 Cr PAT):
- Conservative: 15x = ₹18,000 Cr → ₹420/share
- Optimistic: 25x = ₹30,000 Cr → ₹700/share
EduFair Range: ₹420 – ₹700
Current Price: ₹536 = Meh. Middling zone.
6. What’s Cooking – News, Triggers, Drama
- May 2025: Approved for branch expansion in Jammu & Kashmir (yay vikas!)
- Apr 2025: NCD Issue oversubscribed 4.75x
- Jan 2025: Income Tax raid on IIFL offices (hello volatility!)
- Q4 FY25: EPS tanks, profitability plunges
- Ongoing: Moody’s, Fitch, S&P rating rollercoaster
- Buzzword Bingo: “Global Medium Term Notes” + “Shakti Branches” + “Allotments” = Confused investors
7. Balance Sheet
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital (₹ Cr) | 76 | 76 | 85 |
| Reserves (₹ Cr) | 8,916 | 10,561 | 12,327 |
| Borrowings (₹ Cr) | 40,017 | 47,136 | 51,533 |
| Total Liabilities (₹ Cr) | 53,002 | 62,403 | 67,644 |
Key Points:
- Debt heavy!
- Borrowings make up ~76% of balance sheet
- Little wiggle room for another bad year
8. Cash Flow – Sab Number Game Hai
| FY | Operating CF (₹ Cr) | Investing CF (₹ Cr) | Financing CF (₹ Cr) | Net CF (₹ Cr) |
|---|---|---|---|---|
| 2023 | -5,225 | -2,716 | +5,361 | -2,580 |
| 2024 | -8,716 | +468 | +7,088 | -1,160 |
| 2025 | -4,781 | -1,149 | +5,526 | -403 |
They’ve been borrowing to survive, not thrive. No positive free cash flow = no champagne yet.
9. Ratios – Sexy or Stressy?
| Ratio | FY24 | FY25 |
|---|---|---|
| ROE (%) | 18% | 5% |
| ROA (%) | 3.5% | 1.2% |
| Gross NPA (%) | 2.25% | 2.23% |
| Net NPA (%) | 1.11% | 1.05% |
| Interest Coverage | Low | Lower |
The only thing not slipping? NPAs. Otherwise, this is a big “Red Flag Ragini” moment for efficiency.
10. P&L Breakdown – Show Me the Money
| Quarter | Revenue (₹ Cr) | PAT (₹ Cr) | EPS (₹) | Financing Margin % |
|---|---|---|---|---|
| Mar ’24 | 2,854 | 431 | 8.81 | 19% |
| Jun ’24 | 2,613 | 338 | 6.79 | 18% |
| Sep ’24 | 2,556 | -93 | -3.72 | 19% |
| Dec ’24 | 2,443 | 82 | 0.96 | 6% |
| Mar ’25 | 2,591 | 251 | 4.89 | 14% |
Cratered in Q3 FY25. Recovered a bit in Q4, but margins took a punch.
11. Peer Comparison
| Company | ROE (%) | P/E | AUM (₹ Cr) | GNPA (%) | PAT (₹ Cr) |
|---|---|---|---|---|---|
| Bajaj Finance | 19.2 | 35.4 | 3,00,000+ | 0.9 | 16,663 |
| Shriram Finance | 15.6 | 15 | 1,50,000+ | 6.4 | 8,208 |
| Muthoot Finance | 19.6 | 20.2 | 60,000+ | 1.3 | 5,332 |
| IIFL Finance | 4.9 | 40.4 | 76,700 | 2.23 | 578 |
You’re paying Bajaj prices for Muthoot performance with IIFL risk.
12. Miscellaneous – Shareholding, Promoters
| Stakeholder | Jun ’24 | Mar ’25 | Note |
|---|---|---|---|
| Promoters | 24.92% | 24.87% | Flat like soda left open |
| FIIs | 30.31% | 26.62% | They’re exiting. Uh oh. |
| DIIs | 7.43% | 8.09% | Trying to catch falling knife? |
| Public | 37.35% | 40.42% | Retail janta trapped again? |
13. EduInvesting Verdict™
IIFL is a classic NBFC that tried to be everywhere, from NCDs to “Shakti” branding to dollar bonds. Now it’s tripping on its own debt.
Pros:
- Nationwide reach
- Low NPA (so far)
- Diversified loans
Cons:
- ROE collapse
- Profit slump
- High P/E for current fundamentals
- Cash burn and tax raids
Final Word:
This is not a story of collapse, but it screams caution. If FY26 bounces back, IIFL might have a second act. If not… well, hope you like fixed income.
Metadata
– Written by EduInvesting Team | 21 July 2025
– Tags: NBFC, IIFL Finance, Loans, Gold Lending, Microfinance, Moody’s Warning, NCD Jungle, India Financial Stocks
