IL&FS Investment Managers Ltd. (IVC) AI Stock Analysis

• Market Cap: ₹2.26B
• Dividend Yield: 9.62%
• Average Volume (3M): 37.55K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 1.21
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 17
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Conglomerates
• EPS (TTM): -0.06
• Shares Outstanding: 314,032,750
• 10 Day Avg. Volume: 24,020
• 30 Day Avg. Volume: 37,547
• PEG Ratio: 0.70
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 9.88
• P/FCF Ratio: -31.67
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹7.50 ▼(-7.98% Downside)
• Action: N/A Date: 01/04/26
• Date: Action: N/A 01/04/26

The score is held back primarily by deteriorating operating performance and weak cash generation (negative operating and free cash flow), despite reported net income. Offsetting this are a conservative, low-leverage balance sheet and a supportive valuation profile with a high dividend yield, while technicals indicate only modest, neutral-to-slightly-positive trend conditions.

Positive Factors

Conservative Balance Sheet

Near-zero debt and a sizable equity base materially lower solvency and refinancing risk, giving the firm structural flexibility to support illiquid alternative vehicles, absorb market stress, and selectively fund investments or capital needs without immediate reliance on external borrowing.

Fee-based Alternative Asset Management Model

The company operates a durable, fee-oriented platform managing alternative funds for institutional investors. The fundraising, selection, monitoring and exit roles create recurring management and performance-fee opportunities tied to AUM and realized exits, providing scalable long-term revenue drivers.

Historical Operating Profitability

Previous years of positive operating margins and healthy gross profitability show the business can generate sustainable core earnings in normal conditions. That operational track record supports a credible recovery path if revenue and fee trends stabilize, reducing structural execution risk.

Negative Factors

Weak Cash Generation

Persistent negative operating and free cash flow across recent years undermines the firm's ability to internally fund distributions, reinvest in the platform, or cover working capital for funds. Weak cash conversion increases reliance on asset sales or external funding and raises sustainability risk for payouts.

Declining Revenue & Core Margins

A sizable revenue drop and a swing to negative EBIT/EBITDA indicate structural pressure on fee generation and fund economics. Sustained topline weakness and impaired core margins reduce the firm's ability to grow AUM, earn performance fees, and restore operating profitability over the medium term.

Earnings-Quality Concerns

An unusually high net margin despite operating losses suggests net income is driven by non-core or one-off items. This weakens the reliability of reported profits, complicates forecasting, and raises risk that dividends or reported earnings will be volatile if those items reverse.

IL&FS Investment Managers Ltd. Business Overview & Revenue Model

Company Description

IL&FS Investment Managers Limited is the private equity, venture capital, and real estate investment arm of Infrastructure Leasing & Financial Services Limited. The firm specializes in seed capital, late venture, growth capital, expansions, middle market, restructuring, stressed assets, recapitalizations, buyouts investments, and real estate investments in high-growth real estate assets including office, residential, retail, integrated townships, special economic zones, hospitality, and mixed-use properties. It also makes debt investments as well as investment banking led private equity transactions focused on opportunities arising from stressed assets. The firm seeks to invest in energy, materials, logistics, agricultural services, auto components, textiles, healthcare, power, waste management, toll roads and cable infrastructure, biotechnology, niche manufacturing, retail, media, consumer services, consumer brands, pharmaceuticals, manufacturing, airport services, highways and rail tracks, marine ports and services, infrastructure and related services, telecom, city gas distribution, shipyards, life sciences, real estate, waste water treatment, information technology, and information technology enabled services companies. It seeks to invest in Middle East, Asian markets with a focus on India, Tamil Nadu, and Delhi; and China. It seeks to invest between $15 million and $100 million in companies with market capitalization of $50 million and $150 million. The firm prefers to make seed capital funding in infrastructure projects in the range of $2 million and $10 million. In the real estate sector, it seeks to invest between $20 million and $50 million. The firm seeks to hold its investments for a period between three years and five years. It seeks to make private equity investments in post revenue companies. The firm prefers to take a seat on the board of directors of its portfolio companies. IL&FS Investment Managers Limited was founded in 1989 and is based in Mumbai, India with additional offices in Bengaluru, India and Mauritius.

How the Company Makes Money

IL&FS Investment Managers Ltd. Financial Statement Overview

Summary

Balance sheet strength (near-zero debt and sizable equity base) supports financial stability, but fundamentals are pressured by a sharp revenue decline and a swing to operating losses in the latest year. Persistent negative operating/free cash flow despite reported net income raises earnings-quality and sustainability concerns.

Income Statement

Profitability is mixed. The latest annual period (2025-03-31) shows a sharp revenue decline (-21.1%) and a swing to operating losses (negative EBIT/EBITDA margins), but reported net income remained strong with an unusually high net margin (~45%), suggesting earnings are being supported by items outside core operations. Prior years (2022–2024) generally showed positive operating profitability and healthy gross margins, but the recent deterioration in the core earnings profile is a key concern.

Balance Sheet

The balance sheet looks conservative, with essentially no debt and a sizable equity base (about 2.05B vs. 2.39B in assets in the latest year), which reduces financial risk. Returns on equity are positive and modest (mid-single digits), indicating the company is profitable on an equity basis, though not highly efficient. Overall strength comes from low leverage, while the main weakness is only moderate returns.

Cash Flow

Cash generation is a weak spot. The latest year shows negative operating cash flow (-88.97M) and negative free cash flow (-90.74M), continuing a pattern of cash outflows in several recent years (including 2023 and 2024), despite positive net income. While there were years with positive cash flow (notably 2021–2022), the recent consistency of negative operating and free cash flow raises quality-of-earnings and sustainability risk.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	290.76M	519.24M	644.46M	416.54M	461.40M
Gross Profit	192.45M	401.86M	507.15M	265.28M	298.16M
EBITDA	-8.12M	27.05M	131.04M	21.88M	68.14M
Net Income	131.46M	101.09M	119.78M	77.90M	78.64M
Balance Sheet
Total Assets	2.39B	2.49B	2.67B	2.55B	2.50B
Cash, Cash Equivalents and Short-Term Investments	1.34B	1.38B	1.52B	1.90B	1.75B
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	133.21M	272.02M	301.21M	251.95M	264.61M
Stockholders Equity	2.05B	2.02B	2.16B	2.11B	2.10B
Cash Flow
Free Cash Flow	-90.74M	-64.31M	-7.76M	63.67M	105.19M
Operating Cash Flow	-88.97M	-61.03M	-4.77M	64.34M	107.39M
Investing Cash Flow	194.52M	283.47M	-361.72M	-151.56M	-57.58M
Financing Cash Flow	-219.82M	-277.21M	-160.95M	-94.21M	-188.42M

IL&FS Investment Managers Ltd. 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%
JMFINANCIL	66 Neutral	₹120.21B	9.64	―	2.93%	-10.92%	152.70%
IIFL	64 Neutral	₹212.37B	16.56	―	―	8.01%	-20.87%
IVC	61 Neutral	₹2.26B	16.24	―	9.62%	―	―
THEINVEST	59 Neutral	₹5.00B	16.85	―	―	-9.21%	-48.40%
IITL	54 Neutral	₹2.89B	32.84	―	―	-90.21%	-106.42%
INDOSTAR	50 Neutral	₹35.17B	4.95	―	―	-5.36%	469.19%

IL&FS Investment Managers Ltd. Corporate Events

IL&FS Investment Managers Announces Resignation of Nominee Director Kaushik Modak

IL&FS Investment Managers Ltd. has announced the resignation of Mr. Kaushik Modak as a non-executive nominee director on its board, effective February 20, 2026. Modak, who was nominated by holding company Infrastructure Leasing & Financial Services Ltd., has stepped down due to personal reasons, and his nomination has been formally withdrawn.

Following his resignation, Modak will cease to be associated with the company in any capacity, including as a member of any board committees, from the effective date. The company has clarified that there are no material reasons for his exit beyond those cited, suggesting this is a routine board-level change with limited immediate operational impact but some governance implications for stakeholders monitoring group-level oversight.

IL&FS Investment Managers reports no re-lodgement requests for physical share transfers

IL&FS Investment Managers Ltd. has submitted to NSE and BSE a report from its registrar, MUFG Intime India Pvt. Ltd., on shareholder requests for re-lodgement of physical share transfer requests for the period from December 1, 2025 to January 6, 2026. The filing is made to comply with a SEBI circular governing a special window for such physical share transfers.

According to the registrar’s confirmation, no requests for re-lodgement of physical share transfers were received, processed, approved or rejected during the reporting period, implying minimal shareholder activity in this legacy shareholding mode. The disclosure fulfills regulatory reporting requirements and provides transparency to investors on the status of physical share transfer requests under the SEBI framework.

IL&FS Investment Managers Ltd. Awaits Clarification on Financial Results

IL&FS Investment Managers Ltd. has been asked by the Exchange to provide clarification regarding its financial results for the quarter ending September 30, 2025, as per SEBI regulations. The company has not yet submitted its consolidated financial results, and its response is currently awaited, which may impact its regulatory compliance and investor relations.