IIFL Finance Q2FY27 Net Profit Climbs 93% To ₹805 Crore, AUM Crosses ₹1.24 Lakh Crore

IIFL Finance reported a substantial increase in net profit for the second quarter of fiscal year 2027, with profit after tax rising 93% year-on-year to ₹805 crore. The company's consolidated assets under management grew 38% year-on-year to ₹1,24,268 crore, driven by robust performance across its loan segments. Gold loan assets surged 90% year-on-year and 13% quarter-on-quarter to ₹65,729 crore, while home finance assets reached ₹43,070 crore, up 4% quarter-on-quarter.

The net non-performing assets ratio increased slightly to 0.9%, but the provision coverage ratio remained solid at 91%. IIFL Finance's founder and managing director, Nirmal Jain, highlighted the company's strong gold and mortgage franchises, lower credit costs, and improved operating efficiency as key contributors to the robust growth.

The company also secured an upgrade from Fitch Ratings, with its Long-Term Issuer Default Rating raised to BB- from B+, reflecting the company's improved credit profile. Additionally, IIFL Finance is accelerating its AI-led transformation across various functions, including underwriting, collections, customer engagement, and cross-selling, with voice AI already in use for gold loan sales and AI credit assessment for over 85% of SME LAP applications.