IIFL Finance Q2 FY27: consolidated PAT up 93% YoY to ₹805 Cr as credit costs ease

IIFL Finance's consolidated Q2 FY27 PAT came in at ₹805.01 Cr, up 93% year-on-year from ₹417.94 Cr and 13% sequentially from ₹713.13 Cr, on revenue from operations of ₹4,246.45 Cr (+28.5% YoY, +8.4% QoQ). Consolidated NPM expanded sharply to 18.95% from 12.63% a year ago and 18.18% last quarter. Standalone (parent-only) PAT was ₹548.53 Cr. No exceptional or one-off items appear in either period's statement, so this is read as organic, reported growth rather than one needing adjustment.

The margin expansion traces to easing credit costs: consolidated impairment/provisioning fell to ₹280.81 Cr in Q2 from ₹500.34 Cr in Q1, and H1 impairment of ₹575.00 Cr annualizes to roughly 1.48% of average loans — inside management's FY27 credit-cost guidance band of 1.5-1.7% given on the last call (Q1 actual was 1.6%). Asset quality held steady, with consolidated GNPA at 1.48% and NNPA at 0.87% (specific provision coverage 41.28%); standalone GNPA was 1.30% and NNPA 0.88%. The company gives no formal revenue or PAT guidance, so this credit-cost trend is the clearest guidance checkpoint available, and it is tracking on-plan.

The stock went into the print at ₹598, up 2.9% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 5 consecutive quarters; revenue is at a 6-quarter high.

Against our pre-result preview, which had pegged PAT at roughly ₹500-550 Cr, standalone profit landed almost exactly in-range at ₹548.53 Cr while consolidated profit far exceeded it at ₹805 Cr, powered by subsidiary contributions (IIFL Home Finance, IIFL Samasta Finance) beyond the standalone book. The Street's Buy consensus (e.g., Motilal Oswal's ₹700 target) had hinged on NIM stabilization alongside AUM growth; this quarter's NPM expansion is consistent with that thesis, though the filing does not break out net interest margin directly. Separately, IIFL Home Finance's income-tax dispute escalated with a fresh ₹963.39 Cr demand under Section 158BC block-assessment proceedings (on top of the holding company's own ₹475.56 Cr demand, both under appeal), and management states it sees no material adverse impact on either entity's financial position. The board also priced USD 300 million of 7.60% senior secured notes due 2030 in July 2026 and approved R Venkataraman's re-designation from Joint Managing Director to Non-Executive Director. No management press release commentary was available in this filing to cross-check against the numbers.