IIFL Finance Limited — Cyborg Score 6/10

Solid
Non-Banking Financial Company (NBFC) / Financial Services

Strategic Profile

IIFL Finance is a diversified NBFC engaged in loans and mortgages, offering home loans, gold loans, business loans, microfinance, capital market finance and developer & construction finance. The company has grown significantly, with AUM reaching Rs. 76,700 Cr in FY24 compared to Rs. 37,900 Cr in FY20, operating approximately 4,800 branches in FY24 versus 2,300 in FY20.

Cyborg Score Rationale

Strong AUM growth from Rs. 37,900 Cr in FY20 to Rs. 76,700 Cr in FY24 demonstrates significant expansion. However, the company has low interest coverage ratios and low return on equity of 13.1% over three years.

Top Insights

  • Customer base exceeds 80 lakh customers
  • Recent capital raises: EGM approved Rs. 2,400 Cr increase (cumulative Rs. 5,492 Cr RPT limit with IIFL Home Finance); Feb 24 board approved private placement of Rs. 1,000 Cr senior secured NCDs
  • December 2023 regulatory relief: Securities Appellate Tribunal set aside SEBI prohibition order and reduced penalty from Rs. 2 crore to Rs. 20 lakh
  • Annual revenue stands at Rs. 10,200 Cr as of March 31, 2025

Named Competitors

  • Cholamandalam Investment and Finance Company — Diversified NBFC offering multiple lending products
  • Manappuram Finance — Leading gold and secured lending NBFC
  • Shriram City Union Finance — Vehicle and consumer finance NBFC

Recent Developments

  • (Feb 2026) Board approved Rs. 1,000 Cr private placement of senior secured NCDs
  • (Feb 2026) EGM scheduled for March 20, 2026 to approve Rs. 2,400 Cr increase in related party transaction limit
  • (Dec 2023) Securities Appellate Tribunal set aside SEBI order restraining new client acceptance, reduced penalty to Rs. 20 lakh

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