Board approves September-quarter results, NBFC subsidiary and MD succession; auditor review unmodified
Board approved the September-quarter results, a wholly-owned NBFC subsidiary (subject to approvals) and a leadership change: Mr. Vasudev Jagannath as Additional & Whole-time Director for three years, and Managing Director from January 1.
By ScoutQuest · · 3 min read
| Line item | Latest | Year ago | YoY | Prev qtr | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 71,440.08 | 57,208.26 | +24.9% | 63,148.18 | +13.1% |
| Total income | 69,033.23 | 54,741.71 | +26.1% | 72,130.77 | −4.3% |
| Profit before tax | 17,425.77 | 11,989.72 | +45.3% | 23,928.36 | −27.2% |
| Profit after tax | 12,661.21 | 8,514.72 | +48.7% | 18,416.34 | −31.3% |
| Total comprehensive income | 12,644.33 | 8,494.43 | +48.9% | 17,974.10 | −29.7% |
| Basic EPS | 4.07 | 2.72 | +49.6% | 5.92 | −31.2% |
- Profit after tax YoY
- +48.7%
- Period
- Quarter ended Sep 30, 2026
Also decided at the meeting
- Approved incorporation of a Wholly-Owned Subsidiary to undertake NBFC business activities, subject to regulatory and other approvals.
- Appointed Mr. Vasudev Jagannath (DIN: 08611698) as Additional Director and Whole-time Director (KMP) for three years, subject to regulator and shareholder approvals.
- Approved re-designation of Mr. Vasudev as Managing Director with effect from January 1, 2027 for three years; Mr. R. Venkataraman continues as a Board member.
Auditor's review
Conclusion: Unmodified
Notes to the results
- Fairfax (FIH Mauritius Investments Ltd and affiliate) to acquire up to 51% stake via preferential allotment, open offer and promoter arrangements; all regulatory and shareholder approvals received.
- Income-tax search in January 2025: Holding Company and two subsidiaries received demand of 124.37 crores; appeals shared, management expects no material adverse impact.
- IIFL Capital Singapore Pte. Ltd incorporated on July 30, 2026 as a wholly owned subsidiary; yet to commence operations.
Results at a glance
The board approved unaudited standalone and consolidated results for the quarter and half year ended September 30, 2026. On a consolidated basis, Total income was 69,033.23 lakh for the quarter against 54,741.71 lakh in the same quarter last year, and 1,41,164.00 lakh for the half year against 1,22,781.21 lakh.
- Revenue from operations (consolidated, quarter): 71,440.08 lakh versus 57,208.26 lakh a year earlier.
- Other income was a negative (2,406.85) lakh for the quarter, which is why total income comes in below revenue from operations.
- Total expenses: 51,607.46 lakh versus 42,751.99 lakh.
- Profit for the period: 12,661.21 lakh versus 8,514.72 lakh in the September 2025 quarter; 31,077.55 lakh for the half year versus 26,067.80 lakh.
- Basic earnings per share (face value Rs. 2 each): 4.07 versus 2.72; diluted 3.85 versus 2.57.
Balance sheet snapshot (consolidated)
- Total assets: 12,13,076.95 lakh as at September 30, 2026, against 9,55,796.22 lakh as at March 31, 2026.
- Debt securities: 1,49,268.13 lakh versus 61,480.46 lakh.
- Borrowings (other than debt securities): 75,854.76 lakh versus 1,20,608.22 lakh.
- Equity share capital: 6,307.04 lakh versus 6,228.69 lakh.
New NBFC subsidiary
The board approved incorporation of a wholly-owned subsidiary to undertake Non-Banking Financial Company business activities, subject to receipt of regulatory and other approvals as may be applicable.
Leadership succession
- Mr. Vasudev Jagannath (DIN: 08611698) appointed as an Additional Director and Whole-time Director (Key Managerial Personnel) for a period of three years, subject to approvals.
- He is re-designated Managing Director with effect from January 1, 2027, for a period of three years, subject to approvals.
- Mr. R. Venkataraman will continue to serve as a member of the Board.
Auditor's review
V. Sankar Aiyar & Co. issued a limited review report with an unmodified conclusion on the consolidated unaudited results. The report notes that interim results of one wholly-owned subsidiary in India were reviewed by another auditor (total assets 5,690.21 lakh; total revenues 1,294.39 lakh for the quarter and 2,382.85 lakh for the half year; net loss of (55.82) lakh and (384.22) lakh) and that one wholly-owned subsidiary outside India was not reviewed by its auditors (total assets 2,011.74 lakh; total revenues 375.15 lakh for the quarter and 588.04 lakh for the half year). The conclusion is not modified in respect of either matter.
Income-tax matter
- The Income-tax Department conducted a search under Section 132 in January 2025; the Holding Company and two subsidiaries received a demand of 124.37 crores vide orders dated April 22, 2026 and May 7, 2026.
- Appeals have been shared before the relevant appellate authority, and an application seeking stay of the outstanding demand was made.
- A stay of demand has been ordered for IIFL Management Services Ltd and IIFL Capital Services Ltd, subject to conditions; the stay in the case of IIFL Facilities Services is pending.
- Management is of the view that there would not be any material adverse impact on the financial position and that no material adjustments are required.
Fairfax stake
All requisite regulatory and shareholder approvals for the proposed change in control have been received, with FIH Mauritius Investments Ltd and its affiliate acquiring up to 51% stake in the company through a preferential allotment, open offer and arrangements with the existing promoters. The preferential allotment and open offer are under implementation. Shareholder approval has been received for Fairfax's right to nominate up to two directors to the Board.
Also from IIFL Capital Services
SEBI accepts surrender of Investment Adviser registration, effective October 28, 2026
28 Oct 2026
IIFL Capital Services Ltd press release, Q2 FY27
28 Oct 2026
IIFL Capital Q2 FY27 revenue from operations up 22% to ₹7,219 Mn, PAT up 49% YoY
28 Oct 2026
More numbers
- Revenue from operations, consolidated quarter71,440.08 (₹ in Lakhs)
- Total income, consolidated quarter69,033.23 (₹ in Lakhs)
- Total income, consolidated half year1,41,164.00 (₹ in Lakhs)
- Profit for the period, consolidated quarter12,661.21 (₹ in Lakhs)
- Profit for the period, consolidated half year31,077.55 (₹ in Lakhs)
- Income-tax demand on holding company and subsidiaries124.37 crores
- Fairfax proposed stake in the company51%
- Term as Additional & Whole-time Directorthree years
- Total income, latest quarter69,033.23 (₹ in Lakhs)
- Total income, year-ago quarter54,741.71 (₹ in Lakhs)
- Total income, previous quarter72,130.77 (₹ in Lakhs)
- Total comprehensive income, latest quarter12,644.33 (₹ in Lakhs)
- Total comprehensive income, year-ago quarter8,494.43 (₹ in Lakhs)
- Total comprehensive income, previous quarter17,974.10 (₹ in Lakhs)
- Profit after tax, latest quarter12,661.21 (₹ in Lakhs)
- Profit after tax, year-ago quarter8,514.72 (₹ in Lakhs)
- Profit after tax, previous quarter18,416.34 (₹ in Lakhs)
- Revenue from operations, latest quarter71,440.08 (₹ in Lakhs)
- Revenue from operations, year-ago quarter57,208.26 (₹ in Lakhs)
- Revenue from operations, previous quarter63,148.18 (₹ in Lakhs)
- Profit before tax, latest quarter17,425.77 (₹ in Lakhs)
- Profit before tax, year-ago quarter11,989.72 (₹ in Lakhs)
- Profit before tax, previous quarter23,928.36 (₹ in Lakhs)
- income_tax_demand124.37 crores
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