IIFL Finance Gold Loan Analysis
Metric Movement Analysis
Gold Loan AUM (Standalone) Rs 43,432 Cr (Up 26% QoQ, Up 189% YoY) Explosive gold loan growth post portfolio reset; gold now primary growth engine.
Gold Tonnage Not disclosed Growth value-led; AUM surge driven by aggressive scaling and higher gold prices.
Standalone PAT Rs 301 Cr (Up 43% QoQ, vs Rs 16 Cr YoY) Sharp turnaround; operating leverage and lower credit costs driving recovery.
Net Yield ~18.26% (Down 30bps sequentially) Strong yield profile maintained despite scale-up.
Cost of Borrowing ~9.7% (Down QoQ) Sequential easing; spreads improving modestly.
ROA ~2.2% (9MFY26) Improving but still below pure gold NBFC peers.
ROE ~12.7% (9MFY26) Recovery underway; profitability rebuilding after stress year.
LTV (Implied Safety Margin) Not explicitly disclosed Gold GNPA only 0.36%; indicates conservative underwriting.
Per Branch AUM (Gold) Not explicitly disclosed Branch network (~2,823 standalone) supporting rapid gold scaling.
Average Ticket Size Rs 0.82 lakh (Gold) Small-ticket retail focus; high granularity reduces risk concentration.
CRAR 18.9% (Standalone) Adequate capital buffer; lower than peers but above regulatory minimum.
Leverage (Capital Gearing) ~3.6x (Net gearing) Moderately elevated; needs monitoring with rapid growth.
Stage III Loans (%) GNPA 1.60% (Down from 2.42% YoY) Strong asset quality improvement after exit from risky segments.
ECL Provision Coverage ~92% coverage Conservative provisioning; strengthening balance sheet resilience.

IIFL Finance is in recovery and growth mode. Gold loans are driving AUM and profit rebound, asset quality has materially improved, and spreads remain healthy. Returns are improving but still trail pure-play gold lenders. Capital and leverage are manageable, but execution consistency over next 2-3 quarters will determine sustainability.