IIFL Capital Q2 FY27: consol PAT +49% YoY to ₹127 Cr, misses ₹175-190 Cr pre-result band

IIFL Capital Services (formerly IIFL Securities) posted consolidated PAT of ₹126.61 Cr for Q2 FY27, up 48.7% YoY from ₹85.15 Cr but down 31.3% QoQ from ₹184.16 Cr. Consolidated revenue from operations was ₹714.40 Cr, up 24.9% YoY and 13.1% QoQ. Basic EPS was ₹4.07 versus ₹2.72 a year ago and ₹5.92 last quarter. Standalone PAT was ₹122.12 Cr, up 33.7% YoY — a materially slower rate than the consolidated 48.7%, so the two bases tell a somewhat different growth story this quarter, with subsidiaries (facilities and insurance-broking segments) adding the incremental gain at the group level.

The YoY-vs-QoQ split is explained almost entirely by the "other income" line, not the core franchise: fee & commission income and interest income both grew comfortably sequentially, but other income flipped from a ₹89.83 Cr gain in Q1 FY27 to a ₹24.07 Cr loss this quarter — a roughly ₹114 Cr swing that pulled PBT down from ₹239.28 Cr to ₹174.26 Cr QoQ. Strip that volatility out and profitability actually improved YoY: net margin (PAT/total income) expanded to 18.3% from 15.6% a year ago, and PBT/revenue-from-operations rose to 24.4% from 21.0%, even though both are well below last quarter's other-income-inflated 25.5%/37.9%.

The stock went into the print at ₹346, down 0.3% over the past month of trading.

Against our pre-result preview (consolidated revenue ~₹620-650 Cr, net profit ~₹175-190 Cr), the quarter beat on revenue (₹714 Cr) but missed meaningfully on profit (₹126.6 Cr) — no independent Q2 FY27 consensus estimate for this company turned up in search, so the preview band is the best available yardstick, and the shortfall traces to the other-income reversal rather than the broking/wealth business. Management gave no quantitative FY27 guidance on the last call, only a multi-year "~20% growth" aspiration that this quarter's 24.9% YoY revenue growth is tracking at or above. The bigger guidance item — Fairfax's regulatory approval, targeted "within 2-3 months" of the July 30, 2026 call — has now been met: the filing confirms all requisite regulatory and shareholder approvals for FIH Mauritius/Fairfax's up to 51% stake have been received, with the preferential allotment and open offer under implementation (the ~₹2,000 Cr at ₹350/share has not yet landed). This resolves the CCI-approval watch item flagged in our pre-result preview. The quarter also carried a cluster of regulatory penalties (SEBI twice for ₹2 lakh each, MCX ₹28.1 lakh and ₹2.05 lakh, BSE ₹51.26 lakh — about ₹85 lakh combined) and the Chief Risk Officer's October 15 resignation; both are financially immaterial against ₹126.6 Cr PAT but are governance datapoints alongside the parallel Board move to re-designate Vasudev Jagannath as Managing Director effective January 1, 2027. No management press release was available for this filing, so framing rests on the results statement and notes alone.