• This is the 6th debt offer from the company since March 2021.
• This debt offer is rated CRISIL AA/Stable and BWR AA+/Stable.
• Last debt issue was in April 2025. For this issue, it has lowered the coupon rates.
• The company marked recovery in its financial performance for 9M of FY26 after a setback for FY25.
• Well-informed investors looking for a steady return for medium to long term may park funds.
ABOUT COMPANY:
IIFL FINANCE LTD. (IFL) is a Systemically Important Non-deposit taking Non-Banking Financial Company (“NBFC-ND-SI”) registered with the RBI, catering to the credit requirements of a diverse customer base with its plethora of products. Its offerings include home loans, gold loans, loans against property and medium and small enterprise financing, micro finance, construction and real estate finance and capital market finance, catering to both retail and corporate clients.
IFL is one of the leading players in the financial services space in India. Together with its subsidiaries – IIFL Home Finance Limited, IIFL Samasta Finance Limited (Formerly known as Samasta Microfinance Limited) and IIFL Open Fintech Private Limited, it provides a diverse range of loans and mortgages. These include home loans, gold loans, business loans including loans against property and medium & small enterprise financing, micro finance, developer & construction finance and capital market finance; catering to both retail and corporate clients.
The company has a nationwide presence with a thriving network of 2600+ branches across 500+ cities. As of September 30, 2025, it had 37334 employees.
This is the 6th debt offer from IFL since March 2021, and the last debt offer was in April 2025.
ISSUE DETAILS:
The company is coming out with its Tranche I NCD issue to mobilize Rs. 2000 cr. (20000000 NCDs). The base size of the issue is Rs. 500 cr. and it has a green shoe option to retain oversubscription to the tune of Rs. 1500 cr. IFL is issuing Secured Redeemable Non-Convertible Debentures having a face value of Rs.1000 each. The issue opens for subscription on February 17, 2026, and will close on or before March 04, 2026. The minimum application to be made is for 10 NCDs (i.e., Rs. 10000) and in multiple of 1 NCD (i.e., Rs.1000) thereon, thereafter. The allotment will be made under “First Come – First Served” basis. Post allotment NCDs will be listed on BSE and NSE. The company will be spending Rs. 41.50 cr. for Tranche I of debt issue and from the net proceeds, it will utilize at least 75% for the purpose of onward lending, financing, refinancing existing indebtedness of the company, and maximum up to 25% for general corporate purposes.
The issue is jointly lead managed by Trust Investment Advisors Pvt. Ltd., Nuvama Wealth Management Ltd., and IIFL Capital Services Ltd., while MUFG Intime India Pvt. Ltd. is the registrar of the issue, and Vardhman Trusteeship Pvt. Ltd. is the Debenture Trustee.
This issue has a tenor of 24 months, 36 months and 60 months and interest payment frequency of Monthly, Annual or Cumulative basis as per the selection of the series by the investors. It carries coupon rates ranging from 8.37% to 9.00%.
The company has allocated 20% for Institutions, 30% for Non-institutions, 35% for HNIs and 15% for Retail investors.
CREDIT RATINGs:
This debt offer is rated CRISIL AA/Stable by CRISL Ltd., and BWR AA+/Stable by Brickwork Ratings India Pvt. Ltd., The rating given by CRISIL and BWR are valid as on the date of this Tranche I Prospectus and shall remain valid until the ratings are revised or withdrawn. The aforesaid rating indicates that instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations and carry very low credit risk. The rating is not a recommendation to buy, sell or hold securities and investors should take their own decision.
The rating may be subject to revision or withdrawal at any time by the assigning rating agency and each rating should be evaluated independently of any other rating. The rating agency has a right to suspend or withdraw the rating at any time on the basis of factors such as new information.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, IFL has (on a consolidated basis) posted a total income/net profit of Rs.5968.04 cr. / Rs. 760.81 cr. (FY21), Rs. 7023.61 cr. / Rs. 1188.25 cr. (FY22), and Rs. 8447.11 cr. / Rs. 1607.55 cr. (FY23), Rs. 10490.47 cr. / Rs. 1974.22 cr. (FY24). Rs. 10237.07 cr. / Rs. 578.16 cr. (FY25). For 9M of FY26 ended on December 31, 2025, it earned a net profit of Rs. 1193.46 cr. on a total income of Rs.9688.49 cr.
As of December 31, 2025, its net NPA stood at 0.75%. Its debt equity ratio at 4.07 as of December 31, 2025 will stand enhanced to 4.20. As of December 31, 2025, its paid-up equity capital of Rs. 85.05 cr. is supported by other equity worth Rs. 13288.34 cr.
Review By Dilip Davda on February 16, 2026
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
