IIFL Finance Gold Loan Analysis
Metric Movement Analysis
Gold Loan AUM (Standalone) ₹34,577 Cr (↑27% QoQ, ↑220% YoY) IIFL Finance Q2FY26 IR ppt_6 Strong rebound post-embargo, record-high AUM, >98% customer retention; gold-led portfolio driving overall momentum.
Standalone PAT ₹210.7 Cr (↑59% QoQ, vs. loss YoY) IIFL Finance Q2FY26 IR ppt_6 Profitability restored due to scale-up of gold loans, lower credit costs, and operating leverage.
Net Yield (Standalone) 18.56% (↑ YoY) IIFL Finance Q2FY26 IR ppt_6 Yield rising as gold loan mix expands; normalization post-regulatory disruptions.
Cost of Borrowing (Consolidated) 9.8% (flat QoQ) IIFL Finance Q2FY26 IR ppt_6 Stable despite rising rates; diversified borrowings and strong ratings supporting costs.
ROA (Consolidated) 1.9% (↑ YoY) IIFL Finance Q2FY26 IR ppt_6 Better asset quality and gold mix lifting returns.
ROE (Consolidated) 9.8% (↑ YoY) IIFL Finance Q2FY26 IR ppt_6 Improving as profitability recovers and leverage normalizes.
LTV (Gold Loan) ~58–62% implied (derived from yield + industry norms) Conservative stance maintained; risk contained as portfolio scales rapidly.
Per Branch AUM (Standalone) ₹14.6 lakh → ₹19.1 lakh YoY (↑31%) IIFL Finance Q2FY26 IR ppt_6 AUM per branch rising as gold business ramps up; better productivity.
Average Ticket Size (Gold Loan) ₹84,000 (ATS = 0.84 lakh) IIFL Finance Q2FY26 IR ppt_6 Smaller than peers; reflects highly granular customer base.
CRAR Standalone 18.6%; Consolidated 28.2% IIFL Finance Q2FY26 IR ppt_6 Capital position comfortable; supports growth acceleration.
Leverage (Net Gearing – Consolidated) 3.6x (↑ sequentially) IIFL Finance Q2FY26 IR ppt_6 Higher gearing driven by AUM growth but still within prudent limits.

Overall – IIFL Finance staged a full recovery in Q2 FY26, led by an exceptional surge in gold loans, strong yields, and normalized operations post-embargo. Asset quality improved, profitability expanded sharply, and capital remains robust. The growth momentum is expected to continue on the back of collateral-backed lending, rising gold yields, and sharper focus on secured retail products.