Transcript for the earnings call held on July 24, 2026

July 30, 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 Friday, July 24, 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_Jul24_2026_aa9bc67cd0.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 Q1 FY27 Earnings Conference Call” July 24, 2026 MANAGEMENT: MR. R. VENKATARAMAN – CO-PROMOTER AND MANAGING DIRECTOR – IIFL CAPITAL SERVICES LIMITED MR. RONAK GANDHI – CHIEF FINANCIAL OFFICER – IIFL CAPITAL SERVICES LIMITED Page 1 of 6 IIFL Capital Services Limited July 24, 2026 Moderator: Ladies and gentlemen, good day and welcome to the IIFL Capital Services Limited Q1 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 telephone. Please note that this conference is being recorded. I now hand the conference over to the management for the opening remarks. Thank you and over to you, sir. R. Venkataraman: Thank you. Good afternoon and welcome to the first quarter FY27 analyst call of IIFL Capital. This is R. Venkataraman. I am the Co-Promoter and Managing Director. Along with me is Ronak Gandhi, who is our CFO. We are living in interesting times. The global environment remains uncertain. Geopolitical developments, commodity price volatility continue to influence investor sentiment and capital flows. With crude touching $100 a barrel, it is to be seen how India is affected in the days to come. Coming to our results, consolidated operational revenue for the quarter was INR631 crores, virtually flat quarter-on-quarter and year-on-year basis. On a quarter-on-quarter basis, that is this quarter Q1 FY27 versus Q4 FY26, our retail broking revenue was INR297 crores, virtually flat. Institutional and investment banking revenue was up 27%, INR207 crores versus INR163 crores in the fourth quarter of last year. Financial product distribution income stood at INR125 crores versus INR182 crores in the fourth quarter, which is a down almost 31%, primarily because of two reasons. One is about the fourth quarter peak of insurance income, which is typically a fourth quarter effect, and the other is because of lumpy transactional income which was booked in the previous quarter. Employee cost is almost flat at INR179 crores versus INR183 crores. Finance cost decreased 5% to INR60 crores. Depreciation flat at INR17 crores. Fees and commission expenses decreased to INR139 crores by 8%, primarily because of decrease in variable payout again linked to the seasonal insurance business. Administrative income was again flat. Operational PBT INR149 crores was up 4% on a quarter- on-quarter basis. Other income was high steeply by INR90 crores, and that is primarily because of the mark-to-market gains on BSE shares. This is the BSE shares is something which we have discussed in the previous quarter also. Coming to year-on-year basis, retail revenue was INR297 crores versus INR264 crores, which is up 13%. Institutional broking investment banking income was flat, INR207 crores versus INR204 crores for the last year first quarter. Distribution income again was down 14%, as I mentioned earlier, because of certain transaction income which was booked which was big in the previous year. Employee cost flat INR179 Page 2 of 6 IIFL Capital Services Limited July 24, 2026 crores. The finance cost decreased 48% to INR60 crores because -- sorry, finance cost increased to INR60 crores from INR40 crores because of increase in MTF book. Depreciation flat. Fees and commission income increased 4%. Admin income was again flat. Operational PBT INR149 crores was down approximately 9%. Other income again INR90 crores, mainly because of the MTM gain in BSE shares. Some housekeeping numbers. Average daily turnover was INR3,15,780 crores, of which F&O was INR3,12,480 crores and cash was INR3,300 crores. In Q4, which was INR3,22,886 crores, of which F&O was INR3,20,011 crores and cash was INR2,875 crores, which was down almost Other updates. I wanted to give an update on the Fairfax investment. During the quarter, Fairfax India Holdings Corporation through FIH Mauritius and its affiliate proposed to increase their shareholding in the company to at least 51% through a combination of preferential issuance of – preferential investment of equity about INR2,000 crores at 350 per share and the mandatory open offer, which is subject to all customary regulatory and other approvals. The shareholders approved the preferential issue of equity shares at the EGM held on June 1, 2026. We are at various stages of approvals from various regulators, including SEBI, NSE, BSE, and IRDAI. Upon completion of the proposed transaction, Fairfax will become the promoter along with existing promoters Nirmal and myself. They will also have a right to nominate two Directors to the Board. We believe that this investment -- will strengthen our company's capital base, support growth across capital markets, wealth management, asset management, institutional equity, and further enhance our credibility and brand through Fairfax's global reach, brand, and financial strength. Coming to the income tax note. Income tax department, as you are aware, conducted a search under Section 132, which was in done in January 2025. The holding company and the subsidiaries have received a demand of INR124 crores. The respective companies have filed appeal already against the said orders with relevant authority under the applicable laws. With this, I have come to the end of my statement and I'll be more than happy to answer any questions that you may have. Thank you. Moderator: Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Keshav Karwa from White Pine IVM Capital Limited. Please go ahead. Keshav Karwa: Hi, sir. Thank you for the opportunity. Sir, I had few questions. First was how much of the AUM growth was organic? And if you see our AUM has always grown faster than the peers for many quarters, but this quarter it was relatively slower, and why is that? This is my first question. R. Venkataraman: See, if you look at our AUM growth, net collections was roughly about INR4,000 crores. I think INR3,675 crores to be very precise. And I am assuming you're talking about the FPD growth, right? So that we have collected about INR3,600 crores. And so we have been going faster, so maybe this is a one-off and from next quarter we'll start we'll catch up. Page 3 of 6 IIFL Capital Services Limited July 24, 2026 Keshav Karwa: Okay. And my second question was on the Fairfax transaction. Have you received the funds yet or are they yet to be received? And how do you intend to deploy the funds? And if the transaction does not get completed, what would be the next step? R. Venkataraman: So we have not received the funds. As I mentioned in my opening remarks, this is subject to all regulatory approvals. And at this point in time, we the company has applied to various authorities for approval and the approvals are in process. So we think that maybe in the next 2 to 3 months we'll get all [Showing first 8,000 characters — download PDF for full document]