Analysts/Institutional Investor Meet/Con. Call Updates

November 04, 2026 The Manager, The Manager, Listing Department, Listing Department, BSE Limited, The National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Tower, Exchange Plaza, 5 Floor, Plot C/1, G Block, Dalal Street, Bandra - Kurla Complex, Mumbai 400 001 Bandra (E), Mumbai 400 051 Tel No.: 22721233 Tel No.: 2659 8235 Fax No.: 22723719/22723121/22722037 Fax No.: 26598237/ 26598238 BSE Scrip Code: 542773 NSE Symbol: IIFLCAPS Dear Sir/Madam, Sub: - Earnings conference call transcript Please find attached herewith a transcript of the earnings call held on Thursday, October 29, 2026. The same is available on the website of the Company and can be accessed at the following link: https://files.iiflcapital.com/assets/IIFL_Sec_IIFL_Cap_Oct29_2026_500920fcb3.pdf Kindly take the same on record and oblige. Thanking you, Yours faithfully, For IIFL Capital Services Limited (Formerly IIFL Securities Limited) Meghal Shah Company Secretary Encl: As above “IIFL Capital Services Limited Q2 FY27 Earnings Conference Call” October 29, 2026 MANAGEMENT: MR. R. VENKATARAMAN – MANAGING DIRECTOR – IIFL CAPITAL SERVICES LIMITED MR. RONAK GANDHI – CHIEF FINANCIAL OFFICER – IIFL CAPITAL SERVICES LIMITED Page 1 of 8 IIFL Capital Services Limited October 29, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the IIFL Capital Services Limited Q2 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Venkataraman from IIFL Capital Services. Thank you, and over to you, sir. R. Venkataraman: Good afternoon, and welcome to the Q2 FY27 Analyst Call of IIFL Capital. I'm R. Venkataraman, Managing Director, and I'm accompanied with my colleague, Ronak Gandhi, who is the CFO. The global environment remained challenging during Q2 FY27 because of geopolitical tensions, elevated oil prices, high interest rates, and that has led to increased volatility across multiple asset classes. However, India remains resilient. Our GDP is showing signs of growth. I think it grew 7.8% in Q1 FY27, and it's been supported by manufacturing services. In this environment, because of inflation pressure, crude price pressure, currency pressure and outgoing foreign flows, we have to closely monitor the happenings on the macroeconomic front. However, as of now, as we speak now, India's medium-term fundamentals remain strong. We remain focused on disciplined growth, prudent capital allocation, governance and risk management. Coming to our results. Consolidated operational revenue for the quarter was INR722 crores, up 14% quarter-on-quarter, 22% year-on-year. If you compare Q2 FY27 with Q1 FY27, the retail equities was INR316 crores, which was up 6%. We saw a significant growth in our institutional and banking revenues. It was up 18%, INR245 crores versus INR207 crores in the first quarter. Basically, we have seen traction in broking as well as banking. FPD income, which is distribution income, was INR159 crores in Q2 versus INR125 crores, which was up 27%. Employee costs increased 8% because of both headcount increase as well as bonus provisions. Finance costs increased 25% to INR75 crores due to increase in borrowings, which was up. Then, depreciation increased 6% to INR18 crores. Fees and commissions were virtually flat, down 4% to INR134 crores versus INR139 crores. Admin expenses grew by 9% to INR96 crores, mainly because of investments in technology. Operational PBT, which was before mark- to-market was, INR206 crores, up almost 40% on a quarter-on-quarter basis. If you remember last time in the analyst call, I had spoken about the other income, which we had seen in the first quarter of FY27 due to mark-to-market gains in BSE. This time, unfortunately, because of adverse price movement, we have a loss of INR32 crores. That is primarily because of BSE share price movement. If you now look at data on a year-on-year basis, Q2 FY27 versus Q2 FY26, then we have seen a retail equities income growth of almost 17% to INR316 crores. Institutional equities income Page 2 of 8 IIFL Capital Services Limited October 29, 2026 was up 31%. Then we have FPD income, which was up almost 23%, INR159 crores versus INR130 crores. Employee cost increased 26% to INR194 crores, basically due to both increase in headcount, variable pay and fixed costs because on a year-on-year basis, we had to take normal wage increase also. Finance cost increased 40% because of increased borrowing. Our MTM book has grown. Depreciation increased 16% because of branches and technology investments. Fees and commissions increased 13%. Admin expense grew again 11%, mainly driven by tech. Operational PBT was INR206 crores before mark-to-market, and it was a gain of about 25%. Other income, as I mentioned, was due to mark-to-market in BSE shares due to price movement in BSE shares. Coming to year-on-year basis for H1 '27 versus H1 '26. Then, we have seen a 15% increase in retail equity, INR613 crores. Institutional equity income was up 16%, INR451 crores versus INR390 crores. FPD income was virtually flat, INR285 crores versus INR275 crores because in the last year first quarter, we had seen some exceptional upfront transactional income. Finance costs increased 44% to INR135 crores. Depreciation, 9% increase, again, as I mentioned, because of asset and technology. Fees and commissions increased 8%, INR273 crores versus INR253 crores, admin expense was up 6%. Operational PBT was up 8% to INR355 crores before MTM. Primarily, we have investments in BSE, which is a legacy investment. We continue to hold about 5.95 lakh shares of BSE, which is the main driver of the MTM. Coming to some housekeeping data. Average daily turnover was INR3,05,073 crores, of which F&O was INR3,01,785 crores. Cash was INR3,288 crores in Q2 FY27 versus INR3,15,780 crores, F&O INR3,12,480 crores and cash was INR3,300 crores in Q1 FY27, which was down roughly 3% on an overall ADTO basis. We have actually done reasonably well compared to the overall decline in market volumes. On a year-on-year basis, we have seen a 16% increase because that the last year, same quarter, it was about INR2,63,568 crores. Coming to other updates. First, I'll give you an update on the Fairfax investment. If you remember, Fairfax had decided to do a preferential infusion of capital in IIFL Capital. We have received FIH, Fairfax Mauritius Investments has required -- received all requisite regulatory and shareholder approvals for the proposed acquisition of 51% of the company through a preferential allotment, open offer and other arrangements with the promoters. The pref allotment and open offer are under implementation and we are expecting that we will get closed in this month of November itself. Consequent to this, Fairfax will join the Promoter Group along with existing promoters. The other update is, we also propose to incorporate a wholly owned NBFC subsidiary, and we want to -- and this, basically, NBFC is aligned with the company's strategy to expand the Page 3 of 8 IIFL Capital Services Limited October 29, 2026 financial services offerings and develop lending and credit solutions to HNI segment. This is, of course, subject to regulatory approvals from RBI. And last point is about succession planning. A part of our leadership succession, the Board has approved appointment of Vasudev Jagannath as Additional Director and Whole-Time Director for 3 years, subject to requisite regulatory approvals. Vasu is an MBA from IIM Calcutta, and he has over, I would say, close to 3 decades experience in capital markets, of which 2 decades he has been with IIFL Capital. Prior to joining IIFL Capital, he has -- he was in the New York desk of CLSA. A [Showing first 8,000 characters — download PDF for full document]