IIFL Capital Services Ltd

AGM notice and document access

• AGM scheduled for Sep 9, 2026 at 11:30 a.m. IST via VC/OAVM.
• Electronic AGM Notice and AR for FY2025-26 sent to registered email shareholders.
• Unregistered emails will access via provided link and QR code.
• Notice and Integrated AR available on company, BSE/NSE, and CDSL websites.
• Physical AR requests: email secretarial@iiflcapital.com with Folio/DP/Client ID.
• Physical updates for shareholders: contact RTA or DP to update details.

AGM and voting record date

• Record date for voting eligibility is September 2, 2026 for AGM and remote e-voting.
• AGM scheduled for September 9, 2026 via VC/OAVM.

Overview

• Consolidated BRSR for FY2025-26 covers IIFL Capital and its subsidiary IIFL Facilities Services Limited.
• Main activity is broking and financial services, 94% of turnover.
• Reporting boundary: consolidated for FY2026; prior year filed on standalone basis.

Key ESG Risks & Opportunities

• Material risk: data privacy and cyber security; mitigated by ISO 27001 and governance.
• Opportunities from energy efficiency, ESG governance and enhanced client trust.
• Human capital development and gender diversity drive competitive advantage.
• CSR expansion in aspirational districts; CSR spend up to 1.97 crore in FY2026.

Governance & Policy Highlights

• Board oversight via dedicated ESG Committee; 2 independent directors and 1 whole-time director.
• Policies include Anti-Bribery, Whistleblower, Human Rights, Equal Opportunity, ESG Policy.
• Reasonable assurance on BRSR Core; ISO 14001:2015 certification achieved.
• Regulatory penalties were disclosed; settlements/penalties with SEBI/NSE/BSE in FY2026.

Social Responsibility & Workforce

• Total employees: 1,559; permanent 1,553 and non-permanent 6; gender mix: 1,175 male, 384 female.
• Board female representation 16.66%; KMP female 20%.
• Mental health programs engaged 500+ employees; Yoga sessions 200+.
• CSR spend in aspirational districts rose to 1.97 crore FY2026; 0 POSH complaints.

Environmental Performance

• Total energy: 10,200 GJ; renewable share: 2,380 GJ; non-renewable: 7,820 GJ.
• GHG emissions: Scope 1 83.91 tCO2e; Scope 2 1,456.70 tCO2e; total ~1,540 t.
• ISO 14001:2015 certification; two LEED Gold offices; one office with solar panels.
• Waste: total 4.59 tonnes; e-waste 0.53 t; plastic 0.04 t; digital onboarding.
• Water withdrawal 16,767 KL; consumption 3,353 KL; discharge 13,413.64 KL.

Stakeholder Engagement & Complaints

• Key stakeholders: customers, business partners, employees, rating agencies, regulators, communities.
• Engagement channels: website, CRM, emails; frequency ranges daily to annually.
• Customer complaints filed: 2,497 in FY2026; 0 pending; shareholders filed 7 in FY2026; 1 pending resolved.
• Value chain partners: 108 complaints filed FY2026; 0 pending; employees: 0 complaints FY2026.

Other Notable Metrics

• No data breaches reported; Information & Cyber Security framework board-approved; ISO 27001-focused.
• MSME procurement 10.35% of inputs; 100% inputs from India.
• CSR beneficiaries include 11,705 in Sakhiyon Ki Baadi; 100% from marginalised groups for several projects.

Financial performance

• Consolidated total income: ₹26,031.01 mn.
• Consolidated revenue from operations: ₹24,200.30 mn.
• Consolidated profit after tax: ₹5,636.36 mn.
• Basic EPS: ₹18.08.
• Diluted EPS: ₹17.07.

Capital structure & liquidity

• Total debt: ₹18,208.87 mn.
• Net debt: ₹15,276.98 mn.
• Debt-to-equity: 0.50x.
• Cash and bank balances: ₹50,653.91 mn.
• Total equity: ₹30,710.72 mn.

AGM Details

• Date/time/mode: 9 September 2026, 11:30 IST, VC/OAVM.
• Attendance cut-off date for voting: 2 September 2026.
• Notice served electronically; BENPOS date: 7 August 2026.

Key Resolutions

• Item 1a: Adopt standalone financial statements for FY2026.
• Item 1b: Adopt consolidated financial statements for FY2026.
• Item 2: Re-appoint R. Venkataraman as director.
• Item 3: Approve material RPT with IIFL Finance Limited.
• Item 4: Approve material RPT with IIFL Home Finance Limited.
• Item 5: Approve material RPT with IIFL Samasta Finance Limited.
• Item 6: Approve material RPT between IIFL Management Services Limited and IIFL Finance.
• Item 7: Special resolution to issue NCDs up to Rs1,000 crore.

Dividend

• Interim dividend of Rs 3 per equity share; treated as final for FY2026.

Director Changes

• R. Venkataraman re-appointed as Director (retiring by rotation).

Auditors

• No changes to statutory/secretarial/cost auditors disclosed.

Material Related Party Transactions

• IIFL Finance Limited: deposits, interest; total 3,563 Cr; 137% turnover.
• IIFL Home Finance Limited: deposits, reimbursements, brokerage; total 2,770 Cr; 106% turnover.
• IIFL Samasta Finance Limited: deposits, investments, fees; total 3,199 Cr; 123% turnover.
• IIFL Management Services Limited: deposits, investments, fees; total 3,025 Cr; 116% turnover.

Other Material Approvals

• Special resolution to issue NCDs up to Rs1,000 crore.

Voting Results

• Voting results not disclosed in this filing.

Subsidiary details

• Target: IIFL Capital Singapore Pte. Ltd., Singapore-based subsidiary for business support and management consultancy.
• Turnover: Not Applicable as a newly incorporated entity.
• Relation: 100% subsidiary of IIFL Capital Services Limited; related party.
• Industry: Business support services and management consultancy.
• Purpose: Establish subsidiary to undertake business support and management consultancy activities.
• Approvals: SEBI NOC and ACRA approvals obtained.
• Timeline: Incorporated on July 30, 2026.
• Consideration: Cash; 100% initial share capital subscription at SGD 1.00.
• Shareholding: 100% equity held by IIFL Capital Services Limited.
• Background: Newly formed Singapore entity; to provide services to group.

Financial Performance

• Consolidated revenue for the quarter: INR631 crores, flat QoQ and YoY.
• Retail broking revenue: INR297 crores in Q1 FY27, flat QoQ.
• Institutional and investment banking revenue: INR207 crores, up 27% QoQ from INR163 crores.
• Financial product distribution income: INR125 crores, down 31% QoQ due to insurance peak.
• Employee costs: INR179 crores, almost flat versus INR183 crores prior quarter.
• Finance cost: INR60 crores, up from INR40 crores due to higher MTF book.
• Depreciation: INR17 crores, flat.
• Fees and commission expenses: INR139 crores, down 8% QoQ due to lower variable payout.
• Other income: INR90 crores, mainly MTM gains on BSE shares.
• Operational PBT: INR149 crores, up 4% QoQ per management; conflicting later note shows decline.
• Average daily turnover: INR3,15,780 crores; F&O INR3,12,480 crores; cash INR3,300 crores.
• Q4 turnover: INR3,22,886 crores; F&O INR3,20,011 crores; cash INR2,875 crores.
• Income tax demand: INR124 crores; appeals filed.
• Fairfax investment: INR2,000 crores preferential issue; approvals ongoing; could become promoter with two directors.

AUM and Product Strategy

• Net collections around INR3,675 crores contributed to AUM growth.
• FPD growth around INR3,600 crores; AUM growth may be a one-off; catch-up next quarter.
• AIF and PMS AUM around INR4,400 crores; income routed under financial product distribution.
• Launched AIF, PMS; added credit and late-stage funds; open architecture for growth.

Market Context

• SEBI margin guidelines: marginal impact; no immediate volume effect expected.
• Crude oil around $100 per barrel; adds macro uncertainty.

Q&A Highlights

• Q: AUM growth organic; management cites net collections around INR3,675 crores.
• Q: Fairfax funds; inflow not received; approvals in 2–3 months; next steps not specified if not approved.
• Q: RM additions; few in the quarter, single-digit count.
• Q: IB/institutional revenue split; about INR200 crores; roughly 50:50 or 60:40.
• Q: AIF/PMS income; flows via financial product distribution.

MCX penalty on APs inspection

• MCX imposed a monetary penalty totaling ₹3,20,000 on IIFL Capital Services.
• ₹1,00,000 penalties on three APs for fund movement clarifications.
• ₹20,000 penalty for deficiencies in inspection of one AP.
• Penalty letters received on July 24, 2026.
• No material impact on financials or operations reported.
• Penalties to be recovered from the concerned APs.
• Inspection covered period: Apr 1, 2024 to Mar 31, 2025.