200% Dividend Announced: IIFL Finance Q3FY26 Results Update

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200% Dividend Announced: IIFL Finance Q3FY26 Results Update

In light of these robust earnings, the Board has declared and approved an interim dividend of Rs 4 per share (200 per cent), signalling a shift from stabilisation to sustainable operating momentum.

IIFL Finance reported a strong rebound for the third quarter of fiscal year 2026, with consolidated profit after Tax (PAT) reaching Rs 501 crore, a 20 per cent increase on a quarter-on-quarter basis. This performance was largely driven by a significant surge in the gold loan business, where assets under management (AUM) grew 189 per cent year-on-year and 26 per cent sequentially to reach Rs 43,432 crore. Overall consolidated AUM rose to Rs 98,336 crore, reflecting a 9 per cent quarterly growth. In light of these robust earnings, the Board has declared and approved an interim dividend of Rs 4 per share (200 per cent), signalling a shift from stabilisation to sustainable operating momentum.

The company has successfully executed a strategic portfolio reset, focusing on collateral-backed retail lending while exiting high-risk segments such as digital unsecured MSME and micro-LAP. This disciplined approach led to a marked improvement in asset quality, with the Gross Non-Performing Assets (GNPA) ratio declining from 2.14 per cent to 1.60 per cent and a high Provision Coverage Ratio (PCR) of 92 per cent. While the gold loan segment led the growth, the home loan AUM remained steady at Rs 31,893 crore, and the MSME segment grew 17 per cent year-on-year following a recalibration toward secured lending. Conversely, the microfinance AUM decreased 19 per cent year-on-year as the firm navigated macroeconomic pressures in unsecured lending.

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Financial stability remains a core highlight, with a Capital Adequacy Ratio (CRAR) of 27.7 per cent and a liquidity buffer of Rs 9,433 crore. These strengthening fundamentals prompted S&P Global Ratings to revise IIFL Finance’s long-term issuer credit rating outlook from Stable to Positive, affirming its 'B+' rating. Moving forward, the company intends to leverage its "phygital" reach of approximately 4,800 branches and an AI-led risk and governance framework to maintain this growth trajectory. With risks contained and cost of funds trending downward, the firm is positioned for scalable, high-quality growth and long-term value creation.

About IIFL Finance

IIFL Finance Limited, along with its subsidiaries IIFL Home Finance and IIFL Samasta Finance, is a leading retail-focused NBFC offering diversified loan products, including home, gold, MSME, microfinance, and capital market finance. With a network of 4,761 branches and a customer base of over 4.6 million, IIFL leverages a robust phygital model to serve underserved segments across India.

Disclaimer: The article is for informational purposes only and not investment advice.