Interest and negative other income weigh on IIFL Capital's Q2 PBT
Operating margin was 20.61 percentage points below the 39-peer median, while tax absorbed 27.34% of pre-tax profit.
Filed 28 Oct 2026, 17:53 IST · after market close · IIFL Capital Services Ltd (IIFLCAPS)
Key takeaways
- IIFL Capital's consolidated Q2FY27 operating margin was 40.68%, 20.61 percentage points below the 61.29% median for 39 reporting financial-services peers.
- Interest of Rs 74.76 cr, depreciation of Rs 17.54 cr and negative other income of Rs 24.07 cr reduced operating profit of Rs 290.63 cr to pre-tax profit of Rs 174.26 cr.
- The 27.34% tax rate left consolidated net profit at Rs 126.61 cr, without any support from positive other income.
Price around the results
Interest weakens the operating-profit-to-PBT bridge
IIFL Capital reported consolidated operating profit of Rs 290.63 cr, but interest of Rs 74.76 cr, depreciation of Rs 17.54 cr and negative other income of Rs 24.07 cr brought pre-tax profit down to Rs 174.26 cr. Interest was the largest of these listed charges, while other income acted as a drag rather than a source of profit support. Tax at 27.34% of pre-tax profit resulted in net profit of Rs 126.61 cr.
Q2 margin trails the financial-services peer median
The 40.68% operating margin was 20.61 percentage points below the 61.29% median among 39 financial-services companies that had reported the same quarter. IIFL Capital ranked 13th from the bottom on this measure, placing its margin materially below the sector comparison.
Management describes a shift beyond a product-led franchise
In its 30-page investor presentation, management said IIFL Capital is transitioning from a product-led franchise to a scalable, multi-strategy asset-manufacturing engine. The company framed this shift around long-term AUM compounding, providing strategic context for the business beyond the quarter's profit bridge.
Results were filed after market close
The company filed its consolidated results at 17:53 IST on 28 October 2026, after market close. The filing therefore does not yet include a post-result stock move or a comparison with the stock's historical results-day response.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹714 cr |
| Other income | ₹-24 cr |
| Expenses | ₹424 cr |
| Operating profit | ₹291 cr |
| Operating margin (%) | 40.68% |
| Interest | ₹75 cr |
| Depreciation | ₹18 cr |
| Profit before tax | ₹174 cr |
| Tax | ₹48 cr |
| Net profit | ₹127 cr |
| EPS (₹) | ₹4.07 |
Operating margin of 40.68% compares with a Financial Services sector median of 61.29% across 39 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
New initiatives
- IIFL Capital is transitioning from a product-led franchise to a scalable, multi-strategy asset manufacturing engine.
What to watch
- Whether operating margin holds above 40.68%.
- Whether other income improves from negative Rs 24.07 cr.
- Whether interest remains below Rs 74.76 cr as operating profit converts into pre-tax profit.