Record PAT, strong AUM growth offset by home finance yield pressure

Revenue grew 28.5% YoY and 8.4% QoQ; PAT 92.6% YoY, 12.9% QoQ

Home loan AUM grew 4% QoQ (implied ~16% annualized at best); yield down 10bps QoQ

Q2 PAT INR805 crores; calls this 'first time crossing on quarterly basis'

Provision declined 5% sequentially to INR281 crores; NPA at 1.48% gross

Board/shareholder approval received; 'talking to various investors'; no closure announced

FY27 target 17-18% vs Q2 4% QoQ growth; yield down 10bps to 11.81% due to LAP mix shift; management signals 'slower' near-term.

Samasta AUM stable at INR10.8Cr; management says 'growth will pick up a little but will be cautious.' ROA 2.5-3% target by year-end not re-confirmed.

NPA 1.48% (down 7bps QoQ); provision coverage 91%; credit cost declining vs 1.5-1.7% guidance, supporting profit expansion.

Capital raise commitment firm but 'hopefully this quarter' vague; prior guidance: 'multiple options post-AGM.' No size committed.

Gold prices were lower at quarter-end vs start; small customers unable to pay temporarily. Historically, these normalize. LTVs close to 85% for affected cohort. Minimal ultimate losses due to collateral.

Board and shareholder approval obtained last quarter. Talking to various investors. No answer on QIP vs private equity yet. 'Hopefully this quarter we close something.' Dilution will be 10-20%.

Disbursements growing 10% QoQ. AUM growth slower because LAP segment (lower yields) gaining share. 'In second half, we should see accelerated growth' as branches ramp. ROE target 16-18% for home next year.

Stand-alone IIFL: negligible. Samasta (HFC): INR78Cr. HFC: INR160Cr at group. Commission declines from 14% to 2.5-5% under new regime. Minimally dilutive on consolidated.

Management cautions growth will 'pick up a little' but focuses on quality. No explicit ROA reconfirm. Q2 ROA improving, but growth muted.

Market expanding fast; we've set up new branches (38 added). Competitive intensity real but market growing. We focus on customer experience, transparent pricing. Second half looks good.

Co-lending grows due to capital efficiency. Almost 40% of our assignment/co-lending gold book is monthly repayment (not bullet). RBI allows no priority sector benefit, but income amortizes over time.

Moving toward superior quality borrowers = lower yield, lower credit cost. New MSME business at 12.5-13.5% yield with superior quality. Opportunity cost trade-off accepted strategically.

On pace (38% YoY to date) but home finance slowing to 4% QoQ; overall growth momentum strong but driven by gold, not guided home segment.

NPA declining, provision down 5% sequentially; on track. Cost of borrowing up 3bps to 9.08%, spread narrowed 6bps to 7.42%; compression ongoing.

Branch expansion ongoing (38 added); capital raise pending closure; equity dilution 10-20% expected. Timing vague ('hopefully this quarter').

FY27 target 17-18% home loan growth; Q2 momentum only 4% QoQ. Yield compression (10bps QoQ to 11.81%) due to LAP share gain pressures margins. Management confident H2 will accelerate but unproven.

Capital raise committed but not closed; management says 'hopefully this quarter.' No size or structure (QIP vs strategic) confirmed. Equity dilution 10-20% if completed, impacting ROE and per-share growth.

Home loan yield -10bps QoQ to 11.81% (LAP-driven); MSME yield -98bps YoY (quality trade-off); net interest spread narrowed 6bps QoQ to 7.42%. Cost of borrowing up 3bps to 9.08%. Blended yield declining across segments.

Gold loan 1-30 DPD bucket increased 30bps QoQ to ~7% (1-30 DPD for gold loans); gold prices lower at quarter-end vs start. While management expects normalization, if gold prices correct further, NPA escalation risk. Gold loans 53% of total AUM.

IRDAI insurance commission rules effective soon; commission declines from 14% to 2.5-5%. INR250Cr group exposure (INR78Cr Samasta, INR160Cr HFC); stand-alone IIFL negligible. 4.5-5% of group revenue at risk. Regulatory arbitrage for bundled products ending.

Samasta Finance AUM stable at INR10.8Cr QoQ; management signals cautious growth approach, quality-focused. ROA target 2.5-3% by year-end not explicitly reaffirmed. Microfinance growth slower than broader portfolio momentum.