IIFL Finance Limited

Financial Services — Credit Services · NSE

₹615.80+₹17.70 (+2.96%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by negative free cash flow.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

The 60-second version of IIFL Finance Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

IIFL Finance Limited, a non-banking financial company, provides financial services in India and internationally.

IndustryCredit Services

SectorFinancial Services

Employees16,341

Annual revenue₹7,627 Cr

How does it make money?

Turns over ₹7,627 Cr a year. Of every ₹100 of sales, about ₹22 reaches shareholders as profit. Each of its 16,341 employees supports ₹46.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹46.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK LTD.. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What is the outlook?

5 analysts covering the stock expect revenue to grow about 19.0% and earnings to grow about 15.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+19.0%

Est. earnings growth+15.4%

Analysts5

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +47% while net margin moved -24% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+47%

Margin effect-24%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 13.6% is steady
✗ Profit CAGR of only 3.4%
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

73/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

73/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

12.5x

3Y Median

15.7x

40 monthly readings · mean 25.9x · range 6.6x–69.9x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 20% below its 3y median of 15.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 26% below the peer median of 17.0x.

vs. its own history

Cheap

15.7x median over 40 months · -20%

vs. sector peers

Cheap

17.0x median of 4 peers · -26%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

—

PEG

3.64

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 16.7% to 11.9% — each rupee of shareholder capital earns less than it did.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 20% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 26% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 16.7% to 11.9%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 10% a year✓ 13.6% CAGR
Latest reported year was 44.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2Return on equity stays above 15%✓ 16.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 15.7x✓ 12.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹26,283 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

12.5x

Cheap

Cheap against the generic band

P/B Ratio

1.88x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹49.15

Profitable

Profitable on a per-share basis

ROE

16.6%

Strong

Strong capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

4.90x

High

High leverage

Revenue Growth (YoY)

44.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

103.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.65%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹14,057 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

8.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

2.9%

Weak

Assets generate little profit

Operating Margin

52.2%

Good

Healthy core-business profitability

Net Margin

26.1%

Good

Strong bottom-line conversion

Current Ratio

141.04

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.31

Defensive

Steadier than the market

52W Range Position

70%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

604.0 / 620.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

49.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,205 Cr	₹6,270 Cr	₹5,763 Cr	₹7,627 Cr	+13.6%
PAT (Net Profit)	₹1,500 Cr	₹1,764 Cr	₹379 Cr	₹1,661 Cr	+3.4%
EPS	₹38.05	₹45.71	₹8.73	₹38.75	+0.6%
ROE	16.7%	16.6%	3.1%	11.9%	—
Total Debt	₹40,017 Cr	₹47,136 Cr	₹51,533 Cr	₹69,636 Cr	+20.3%
Free Cash Flow	-₹5,487 Cr	-₹8,846 Cr	-₹4,842 Cr	-₹14,057 Cr	—

🟢 Revenue has grown at 13.6% a year over 3 years.

🟢 PAT (Net Profit) has grown at 3.4% a year over 3 years.

🟡 EPS has been broadly flat over 3 years (0.6% a year).

🔴 ROE has fallen from 16.7% to 11.9% over 3 years (-4.8 pts).

🔴 Total Debt has grown at 20.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹89,059 Cr

Total Liabilities

₹73,440 Cr

Cash & Equivalents

₹4,288 Cr

Operating Cash Flow

-₹13,976 Cr

Capex

-₹81 Cr

Shareholding (proxy)

Institutional Holding

22.3%

Insider Holding

46.9%

Corporate Actions

Next Earnings

15 Oct 2026

Dividend Rate

₹4

Ex-Dividend Date

29 Jan 2026

Analyst Consensus

Recommendations

5 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹754.17

+22.5% vs CMP

Target Range

₹650 – ₹815

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

3 mixed3 general

IIFL Finance Q2 profit nearly doubles to Rs 805 crore; AUM rises 38%

The Economic Times, 15 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

IIFL Finance (IIFL.NS) Ticks Up 1.50% to ₹606.65, Holding Above Key Support Zone - Revenue Growth Stocks

https://www.siam.in/, 13 Oct

Buy IIFL Finance; target of Rs 760: Motilal Oswal

Moneycontrol.com, 16 Oct

Earnings call transcript: IIFL Finance posts record Q2 2026 profit, shares edge up By Investing.com

Investing.com South Africa, 15 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

IIFL Finance Share Price Rise Streak: 6.3% in 2 Sessions

Univest, 12 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

JPMorgan maintains Overweight on IIFL Finance, sets ₹770 target

scanx.trade, 15 Oct

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Valuation

MiddlingGrowth · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 3 tripwires holding · see Key things to watch ↑