IIFL Finance rallies 5% on heavy volume in weak market, hits 52-week high

Since September 26, the stock price of the non banking financial company (IIFL Finance) has zoomed 31 per cent.

Share price of IIFL Finance today

 

Shares of IIFL Finance hit a 52-week high of ₹549.35, as they rallied 5 per cent on the BSE in Thursday’s intra-day trade amid heavy volumes. Since September 26, the stock price of the non banking financial company (NBFC) has zoomed 31 per cent. It surpassed its previous high of ₹538.15 touched on July 24, 2025.

 

At 02:14 PM; IIFL Finance was trading 3 per cent higher at ₹537 on the BSE. In comparison, the BSE Sensex was down 0.66 per cent at 84,436. The average trading volumes at the counter jumped over five-fold, with a combined 5.6 million equity shares changing hands on the NSE and BSE.

 

 

Fitch Ratings revises IIFL's long-term IDR to positive 

 

On October 16, 2025 Fitch Ratings revised the outlook of IIFL Finance's Long-Term Issuer Default Rating (IDR) to Positive from Stable. The outlook revision reflects the rating agency’s view that IIFL's credit profile could improve over the next two years, particularly its business and risk profiles, asset quality and funding diversity. An improved credit profile could be positive for IIFL's ratings. 

 

Loan growth has rebounded following the lifting of regulatory restrictions on IIFL's gold-backed lending business in September 2024, with broadening funding flows supporting new disbursements in gold-backed loans and other products over the past several months. The revision also reflects Fitch's expectation of a gradual decline in legacy problem assets over the next two years along with stabilisation of asset quality risks as management pivots the portfolio towards secured lending categories, Fitch Ratings said in its rationale.   

IIFL Finance’s outlook

 

Serving both retail and corporate clients with tailored financial products, the company, along with its subsidiaries—IIFL Home Finance Limited and IIFL Samasta Finance Limited —provides a diverse range of loan products, including gold loans, home loans, MSME secured loans, MSME unsecured loans, supply chain finance and microfinance loans, through a widespread branch network across India.

 

India's robust medium-term growth potential and large, diversified economy are likely to continue supporting the business prospects and profitability of non-bank financial institutions (NBFIs). Easing domestic interest rates, moderate inflation, improved system liquidity and support for domestic consumption from reduced taxes on goods and services are likely to buffer against global economic uncertainty, particularly as India's NBFIs are mostly domestically focused, according to Fitch Ratings.

 

The rating agency expects asset under management (AUM) growth to continue apace in the medium term with a focus on secured business lines. A higher secured loan mix could reduce IIFL's exposure to asset quality risks, if managed well. High growth as the company shifts its portfolio could raise operational risks, but this may be mitigated by greater regulatory clarity on gold lending requirements and IIFL's tightened lending standards since the Reserve Bank of India's (RBI) supervisory action.

 

A narrower net interest margin and higher credit costs are constraining near-term profitability, but Fitch Ratings expect a recovery in loan volumes, selective expansion in lending yields and a gradual moderation in credit costs over the next one to two years to support profitability.

 

Asset growth of NBFCs is projected at 15-17 per cent year-on-year for FY2024–25 and FY 2025-26, according to CRISIL Ratings. Moreover, RBI is also taking measures to uplift the sector through reduction of risk weights on bank lending to NBFCs, which is expected to enhance funding access. Additionally, the sector is likely to benefit from easing liquidity conditions and potential interest rate cuts, which could support net interest margins and return on assets of NBFCs, IIFL Finance said in its FY25 annual report.