IIFL Finance Limited (IIFL) AI Stock Analysis

• Market Cap: ₹275.95B
• Dividend Yield: N/A
• Average Volume (3M): 65.98K
• Price to Earnings (P/E): 32.1
• Beta (1Y): 1.61
• Revenue Growth: 8.01%
• EPS Growth: -20.87%
• Country: IN
• Employees: 14,829
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 8.86
• Shares Outstanding: 425,227,940
• 10 Day Avg. Volume: 103,076
• 30 Day Avg. Volume: 65,980
• PEG Ratio: -0.46
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 1.42
• P/FCF Ratio: -2.91
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹525.00
• Price Target Upside: -19.10% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹584.00 ▼(-10.01% Downside)

IIFL Finance Limited's stock score is primarily influenced by its strong technical momentum, despite being overbought, and its financial performance, which shows growth but also highlights significant risks related to profitability and cash flow management. The high P/E ratio suggests overvaluation, which is a concern given the lack of dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong demand for IIFL's financial services and effective market penetration, supporting long-term business expansion.

Strong Gross Profit Margin

A robust gross profit margin reflects effective cost management and pricing power, which can sustain profitability despite market fluctuations.

Stable Equity Base

A stable and growing equity base signifies financial health and resilience, providing a solid foundation for future investment and growth opportunities.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth or weather economic downturns.

Declining Profitability

Decreasing profitability margins suggest challenges in operational efficiency, which may hinder the company's ability to generate sustainable profits over time.

Negative Cash Flows

Persistent negative cash flows can strain liquidity, limiting the company's ability to fund operations and invest in growth, posing a risk to long-term financial stability.

IIFL Finance Limited Business Overview & Revenue Model

Company Description

IIFL Finance Limited provides various financial products and services in India and internationally. It offers home, personal, and gold loans; business loans, including loans against property, medium and small enterprise financing, micro finance, developer and construction finance, real estate finance, and capital market finance; and digital finance. The company also provides wealth and asset management services; and demat account, futures and options, and commodity trading services. It serves retail and corporate customers. The company was formerly known as IIFL Holdings Limited and changed its name to IIFL Finance Limited in May 2019. IIFL Finance Limited was incorporated in 1995 and is based in Mumbai, India.

How the Company Makes Money

IIFL Finance generates its revenue primarily through interest income from the loans it disburses to customers, which constitutes a significant portion of its earnings. The company makes money by charging interest on personal loans, home loans, and other types of financing, which are offered at competitive rates. Additionally, IIFL earns revenue from fees and commissions related to its investment and insurance products, as well as from asset management services. The company's strategic partnerships with various financial institutions and its robust distribution network contribute to its ability to attract and retain customers, further enhancing its revenue streams. The growth in retail lending and increasing financial inclusion in India also play a crucial role in driving IIFL's earnings.

IIFL Finance Limited Financial Statement Overview

Summary

IIFL Finance Limited demonstrates growth in revenue and a strong gross profit margin, but faces declining profitability and operational efficiency in recent years. The balance sheet shows stability but is pressured by high leverage, posing potential financial risks. Cash flow management remains a critical area for improvement due to persistent negative cash flows. The company should focus on enhancing profitability and liquidity to sustain long-term growth.

Income Statement

IIFL Finance Limited has shown consistent revenue growth over the years, with a revenue increase from previous years. However, there is a notable drop in EBIT and EBITDA margins in the latest year compared to the prior period, indicating a decline in operational efficiency. The net profit margin also decreased, showing reduced profitability. Despite these challenges, the company maintains a strong gross profit margin.

Balance Sheet

The company has a stable equity base with a positive trend in stockholders' equity growth, which signifies financial stability. However, the high debt-to-equity ratio indicates significant leverage, which poses a risk if not managed carefully. The equity ratio remains relatively healthy, suggesting a sound balance between assets and equity.

Cash Flow

IIFL Finance Limited faces challenges with negative operating and free cash flows, indicating potential liquidity issues. While the free cash flow has improved from the previous year, the operating cash flow to net income ratio is unfavorable, suggesting cash flow management concerns. The company needs to enhance cash generation to strengthen its financial position.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	104.24B	99.25B	101.58B	79.13B	70.13B	59.53B
Gross Profit	59.92B	57.55B	62.90B	46.91B	40.22B	33.28B
EBITDA	8.17B	8.96B	27.53B	22.65B	16.58B	11.10B
Net Income	3.24B	3.79B	17.64B	15.00B	11.88B	7.60B
Balance Sheet
Total Assets	718.63B	676.44B	624.04B	514.64B	459.10B	406.67B
Cash, Cash Equivalents and Short-Term Investments	53.62B	22.91B	26.29B	58.03B	81.45B	47.96B
Total Debt	550.27B	515.33B	471.36B	408.45B	368.65B	325.83B
Total Liabilities	-139.55B	536.89B	503.48B	428.01B	394.40B	352.73B
Stockholders Equity	126.59B	124.12B	106.37B	89.92B	64.64B	53.88B
Cash Flow
Free Cash Flow	0.00	-48.42B	-61.16B	-52.02B	16.83B	-36.27B
Operating Cash Flow	0.00	-47.81B	-58.48B	-49.41B	17.84B	-35.91B
Investing Cash Flow	0.00	-11.49B	-13.56B	-27.16B	-9.96B	2.36B
Financing Cash Flow	0.00	55.26B	60.42B	53.61B	27.81B	44.30B

IIFL Finance Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 648.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IIFL, the sentiment is Positive. The current price of 648.95 is above the 20-day moving average (MA) of 600.34, above the 50-day MA of 571.66, and above the 200-day MA of 472.11, indicating a bullish trend. The MACD of 24.96 indicates Negative momentum. The RSI at 69.71 is Neutral, neither overbought nor oversold. The STOCH value of 79.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:IIFL.

IIFL Finance Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FIVESTAR	67 Neutral	₹149.48B	13.49	―	0.36%	20.44%	13.10%
IIFL	66 Neutral	₹275.95B	32.13	―	―	8.01%	-20.87%
CREDITACC	54 Neutral	₹212.73B	159.08	―	0.77%	0.75%	-90.03%
CGCL	52 Neutral	₹176.99B	22.40	―	0.11%	43.41%	109.52%
MANAPPURAM	49 Neutral	₹241.40B	53.75	―	0.80%	-3.68%	-80.12%
IFCI	45 Neutral	₹132.02B	34.88	―	―	-12.62%	175.71%

IIFL Finance Limited Corporate Events

IIFL Finance Raises Rs 900 Crore via Listed NCDs and Perpetual Bonds on Private Placement

IIFL Finance’s finance committee has approved and completed the private placement allotment of a total of 70,100 listed non-convertible debentures (NCDs) in dematerialised form on 30 December 2025, aggregating to Rs 800 crore of subordinated redeemable NCDs and Rs 100 crore of perpetual NCDs. The issue comprises 30,000 subordinated, unsecured, listed, rated, redeemable NCDs of Rs 1 lakh each under Series D35 (Option A-I) with a seven-year tenure and 9.25% annual coupon, 40,000 similar NCDs under Series D35 (Option A-II) with a ten-year tenure and 9.30% coupon, and 100 perpetual, unsecured, listed, rated NCDs of Rs 1 crore each under Series PDI-2 (Option B) carrying a 9.90% coupon and a callable feature after 10 years subject to Reserve Bank of India approval. All three tranches are to be listed on the National Stock Exchange of India, enhancing IIFL Finance’s long-term funding profile and, in the case of perpetual debentures, potentially supporting its regulatory capital structure, while locking in relatively high fixed interest costs in the current rate environment.

IIFL Finance Clears Up to Rs 800 Crore NCD Issue via Private Placement

IIFL Finance Limited’s Finance Committee has approved the issuance of two tranches of listed, rated non-convertible debentures (NCDs) on a private placement basis, comprising unsecured subordinated redeemable NCDs of up to Rs 700 crore and perpetual unsecured NCDs of up to Rs 100 crore, both to be listed on the National Stock Exchange of India. The structure, including base issue sizes with green-shoe options and defined penalties for payment delays, indicates the company’s continued reliance on debt capital markets to diversify its funding profile and potentially strengthen its regulatory capital and long-term funding mix, which is significant for investors tracking its leverage, liquidity, and growth capacity.

IIFL Finance Clears Up to Rs 800-Crore NCD Issue via Private Placement

IIFL Finance has approved the issuance of two tranches of listed, rated non-convertible debentures (NCDs) on a private placement basis, with a total potential fundraise of up to Rs 800 crore. The first tranche comprises unsecured, subordinated, redeemable NCDs of up to Rs 700 crore, while the second comprises perpetual unsecured NCDs of up to Rs 100 crore, both proposed to be listed on the National Stock Exchange of India. The move underscores the company’s continued reliance on capital markets for funding and balance sheet strengthening, providing additional debt capital that can support future lending growth and reinforce its funding diversification strategy, with defined provisions for higher interest in case of payment delays to protect debenture holders.

IIFL Finance Names Former RBI Deputy Governor as Chair, Seeks Sharp Hike in Borrowing Limit

IIFL Finance Limited’s board has appointed former Reserve Bank of India Deputy Governor Bibhu Prasad Kanungo as the non-executive independent Chairperson of its board, effective 19 December 2025, strengthening the company’s governance with deep central banking, regulatory and financial sector expertise. The board also approved a proposal, subject to shareholder approval, to enhance the company’s borrowing and security-creation limit from ₹35,000 crore to ₹60,000 crore, signalling an ambition for larger balance sheet expansion, and disclosed that it has complied with an income-tax notice by filing the required return for a specified block period and paying tax of about ₹1.47 crore, closing a regulatory follow-up from an earlier income tax search.

IIFL Finance Elevates Former RBI Deputy Governor B. P. Kanungo to Board Chair

IIFL Finance Limited has designated former Reserve Bank of India Deputy Governor Bibhu Prasad Kanungo as Chairperson of its Board, effective immediately, following a unanimous decision by the board of directors. Kanungo, who currently serves as a non-executive independent director at IIFL Finance, brings more than four decades of experience in central banking, monetary policy and financial regulation, and his elevation is being framed as a move to strengthen the company’s corporate governance, regulatory discipline and institutional resilience, aligning closely with SEBI’s listing and disclosure requirements and signaling a strong focus on independent oversight for stakeholders.

IIFL Home Finance Secures High Credit Rating for Rs. 3,000 Crore Issue

IIFL Finance Limited announced that its material subsidiary, IIFL Home Finance Limited, has been assigned a credit rating of IVR A1+ by Infomerics Valuation and Rating Limited for its proposed commercial paper issue of Rs. 3,000 crores. This high credit rating reflects positively on IIFL Home Finance’s financial health and could enhance its ability to raise funds, potentially strengthening its market position and benefiting stakeholders.

IIFL Finance Allots Equity Shares Under ESOPs

IIFL Finance Limited has announced the allotment of 125,816 equity shares to its employees under its Employee Stock Option Schemes (ESOPs). This move, approved by the Nomination and Remuneration Committee, is part of the company’s strategy to incentivize and retain talent, potentially enhancing employee engagement and aligning their interests with the company’s growth objectives.

IIFL Finance Approves Rs. 2,000 Crore Debenture Issue

IIFL Finance Limited has announced the approval of a public issue of secured, rated, listed, redeemable non-convertible debentures with a shelf limit of up to Rs. 2,000 Crore. This strategic move is expected to enhance the company’s capital base and support its growth initiatives, subject to necessary regulatory approvals.

IIFL Finance Grants 44,000 Stock Options to Employees

IIFL Finance Limited has announced the grant of 44,000 stock options to selected employees under its Employee Stock Option Scheme 2008. This move, approved by the Nomination and Remuneration Committee, is part of the company’s efforts to incentivize and retain talent, potentially impacting its operational efficiency and market positioning positively.