IIFL Finance Q4 profit falls YoY, but witnesses sequential rebound

IIFL Finance reported a consolidated net profit of ₹38.4 crore for the fourth quarter ended March 31, 2025, down sharply by 76.7% from ₹165 crore in the same period last year, as per the company’s standalone financial results. The year-on-year decline comes against the backdrop of regulatory challenges earlier in the financial year, including a temporary embargo on its gold loan business.

Net interest income (NII), a key indicator of lending profitability, also fell by 40% to ₹546.6 crore in Q4FY25 from ₹913 crore in Q4FY24. The drop in NII was attributed to lower income from off-book assets and a reduction in other income streams. Total income for the quarter declined by 36% year-on-year to ₹546.5 crore, despite sequential recovery.

However, the quarter showed signs of recovery on a quarter-on-quarter basis. Profit after tax surged 141% compared to the previous quarter’s ₹16 crore, aided by a 28% rise in assets under management (AUM) and a 325% jump in pre-provision operating profit. The company’s gold loan business rebounded with a 40% sequential growth in gold loan AUM, reaching ₹21,022 crore.

For the full financial year FY25, IIFL Finance reported a net loss of ₹409.6 crore compared to a profit of ₹584.8 crore in FY24. The loss was largely driven by the one-time exceptional provisions and disruption in key business segments during the first half of the year. The company maintains a capital adequacy ratio (CRAR) of 18.5% on a standalone basis and a liquidity buffer of ₹5,216 crore across the group.

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