Shares of IIFL Capital Services Ltd rose nearly 3 percent to ₹308.35 on Monday, July 29, after the company reported strong financial performance for the first quarter of the financial year 2025-26.
Financial Highlights
The company reported a consolidated revenue of ₹680 crore for Q1 FY26, marking a 19 percent increase on a sequential basis. Profit after tax (PAT) stood at ₹176 crore, rising 37 percent quarter-on-quarter. On a year-on-year basis, revenue increased 6 percent, while net profit saw a marginal decline of 4 percent from ₹182 crore in Q1 FY25.
Other key operating metrics showed robust growth. Distribution assets under management (AUM) increased 14 percent quarter-on-quarter to ₹35,719 crore, while DP assets grew 10 percent sequentially to ₹2,08,352 crore.
Business Segment Overview
IIFL’s institutional broking segment witnessed healthy transaction activity, particularly in block deals. Its investment banking arm closed 13 deals during the quarter, including initial public offerings (IPOs), rights issues, and offer-for-sale (OFS) transactions. The non-institutional broking business faced a 31 percent year-on-year decline in average daily turnover, largely due to regulatory changes, but the company maintained a strong retail footprint with more than 100 branches and 4,000 partners across India.
Management Commentary
Managing Director R. Venkataraman said, “Our institutional broking business saw good activity, especially in block deals, and our investment banking arm continues to execute strong mandates. We are progressing well on our long-term strategy to transition the legacy retail broking business into a full-fledged wealth management practice.”
Market Reaction
The strong quarterly performance and continued focus on high-growth segments such as wealth management and investment banking contributed to the positive sentiment around the stock. Investors reacted positively, pushing the share price up by nearly 3 percent in early trade on the National Stock Exchange.
