IIFOIN - Diversified retail-focussed NBFC

Research evidence excerpt

IIFOIN - Diversified retail-focussed NBFC

FICC Research

Credit Research

3 August 2026

IIFL Finance Ltd

IIFOIN - Diversified retail-focussed

NBFC

Co-lending is an important component of IIFOIN’s Imtiaz Shefuddin

+65 6308 4906asset-light business model, enabling it to originate and

imtiaz.shefuddin@barclays.com

service retail assets while sharing credit exposure with Barclays Bank, Singapore

partner banks. That said, IIFOIN’s financial profile reflects

pressure on core profitability, driven largely by regulatory

disruptions.

Diversified retail-focused NBFC with a capital-light operating model

IIFL Finance Limited (IIFOIN) is a diversified retail-focused NBFC with lending operations across

gold loans, affordable housing finance, MSME lending and microfinance segments. Unlike its

traditional retail NBFC peers, IIFOIN follows a capital-light, originate-to-distribute (OTD)

business model, with a significant portion of new loan origination routed through co-lending

and direct assignment partnerships.

As of 4Q FY26, IIFOIN reported a consolidated loan AUM of INR1,081.8bn, reflecting a rebound of

10%q/q and 38% y/y, following the regulatory and operational disruptions of FY25, which we

discuss in this report1 Off-balance-sheet exposures accounted for c.35% of its total AUM as of 4Q

FY26 (FY25: c.30%), higher than most of its large retail-focused NBFC peers, highlighting IIFOIN’s

growing role as an originator and servicer, rather than a purely balance-sheet-retained lender.

IIFOIN primarily serves self-employed individuals, micro-entrepreneurs, first-time homebuyers

and low -to -middle-income households - segments where access to formal credit remains

relatively under-penetrated. The economically weaker sections of lenders comprise 87% of the

company’s customer base.