IFL Finance Limited (NSE: 1225IFL27, 1225IFL28, 1175IFL28, 1180IFL28, 1180IFL28A, 1175IFL28A, 1180IFL28B) – Quarterly Update (Q2 FY 2026)

Date of announcement: 29 July 2026

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Introduction

IFL Finance Limited (formerly IFL Housing Finance Ltd.) submitted its unaudited standalone financial results for the quarter ended 30 June 2026 to the National Stock Exchange of India (NSE). The filing includes a limited‑review report from its statutory auditors, Ajay Rattan & Co., and a series of regulatory disclosures required under SEBI Listing Regulations.

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1. Board Meeting & Regulatory Compliance

• Meeting date & time: 29 July 2026, 13:00 hrs – 22:30 hrs.
• Key approvals:
  • Acceptance of unaudited financial results (limited review, unmodified opinion).
  • Submission of Annexure A (financial ratios), Annexure B (utilisation of NCD proceeds), and Annexure C (security‑cover certificate).
• Compliance: All disclosures made in accordance with SEBI Listing Regulations (51, 52, 54, 52(4), 52(7) & 52(7A)).

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2. Unaudited Financial Results (Quarter ended 30 June 2026)

Item	Amount (₹ Lakhs)
Total Revenue from Operations	2,854.34
– Interest Income	2,762.92
– Fee & Commission Income	86.74
– Other Operating Income	4.68
Other Income	74.46
Total Income	2,928.80
Total Expenses	1,979.27
– Finance Costs	1,306.56
– Employee Benefits	412.53
– Impairment of Financial Instruments	59.72
– Depreciation & Amortisation	76.57
– Other Expenses	123.89
Profit before Tax	949.52
Tax Expense	253.56
Profit after Tax	695.96
Earnings per Share (Basic & Diluted)	₹ 0.82

All figures are unaudited and have been reviewed by the Audit Committee before Board approval.

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3. Key Financial Ratios (Annexure A)

• Debt‑Equity Ratio: 2.29
• Net Worth: ₹ 18,693.15 Lakhs
• Total Debt to Total Assets: 66.71 %
• Net Profit Margin: 24.38 %
• Outstanding Debt: ₹ 41,714.23 Lakhs
• Provision Coverage Ratio: 21.77 %
• Capital Adequacy Ratio (RBI): 32.11 %

These ratios indicate a higher leverage position compared with the prior quarter (Debt‑Equity 2.14, Debt‑to‑Assets 65.91 %) but an improvement in capital adequacy.

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4. Capital Structure & Debt Instruments

4.1 Non‑Convertible Debentures (NCDs)

ISIN	Issue Date	Interest Rate	Issue Amount (₹ Lakhs)
INE01XO07017	18‑Nov‑2025	12.25 %	1,998.00
INE01XO07025	14‑Jan‑2026	12.25 %	1,600.00
INE01XO07033	28‑Jan‑2026	11.75 %	3,000.00
INE01XO07041	23‑Feb‑2026	11.80 %	4,000.00
INE01XO07058	10‑Mar‑2026	11.80 %	4,000.00
INE01XO07066	14‑May‑2026	11.75 %	5,000.00

• Total NCD issue: ₹ 18,645.17 Lakhs, fully secured by a charge over book‑debts/receivables.
• Security cover: ≥ 1.10 times as required by the Debenture Trust Deed.

4.2 Authorized Share Capital

• Increased from ₹ 100 crore to ₹ 12,500 Lakhs (₹ 125 crore) following shareholder approval at the Extraordinary General Meeting on 25 April 2026.

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5. Corporate Actions

• Initial Public Offering (IPO): Shareholders approved the IPO proposal on 25 April 2026. The Draft Red Herring Prospectus (DRHP) was filed with regulators on 22 July 2026.
• No loan‑exposure transfers were undertaken during the quarter, in line with RBI guidelines.

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6. Utilisation of NCD Proceeds

• The proceeds from the May 2026 NCD issue (₹ 50 crore) have been fully utilised for the purposes disclosed in the offer document.
• No deviation or variation in the use of funds was identified, and no additional approvals are required.

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7. Auditor’s Statement

• Statutory auditors (Ajay Rattan & Co.) issued a limited review report with an unmodified opinion on the unaudited standalone results for Q2 FY 2026.
• Management confirms that the results present a true and fair view of the company’s affairs.

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8. Summary for Investors

• Profitability: Net profit after tax of ₹ 695.96 Lakhs and EPS of ₹ 0.82, reflecting a solid margin (24.38 %).
• Leverage: Debt‑Equity at 2.29 and debt‑to‑assets at 66.71 %, supported by a 1.10‑times security cover on NCDs.
• Capital Strength: Capital Adequacy Ratio of 32.11 %, comfortably above regulatory minimums.
• Strategic Moves: Completion of a ₹ 5,000 Lakhs NCD issuance, increase in authorized share capital, and filing of the IPO prospectus, indicating a focus on capital expansion and market listing.
• Regulatory Compliance: All disclosures made per SEBI Listing Regulations; no material deviations in use of funds.

Investors should monitor the upcoming IPO process, the company’s ability to manage its leverage, and the performance of the newly issued NCDs as the fiscal year progresses.