New Delhi: India Infrastructure Finance Company Limited (IIFCL) reported a 36% decline in net profit to ₹1,379 crore for the financial year ended March 2026, compared to ₹2,165 crore in the previous year. The decline was primarily attributed to foreign exchange fluctuations.
Despite the drop in profit, the state-owned infrastructure financier posted its highest-ever annual loan sanctions of ₹57,680 crore, reflecting strong growth in infrastructure funding activities.
Record Loan Sanctions and Strong Disbursement Growth
IIFCL recorded a 13% year-on-year increase in sanctions during FY26, while annual disbursements rose by 16% to ₹32,972 crore, according to Managing Director Rohit Rishi.
The company’s cumulative disbursements stood at around ₹1.89 lakh crore as of March 31, 2026, while consolidated disbursements crossed ₹2.14 lakh crore, highlighting its expanding role in infrastructure financing across India.
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Loan Book Expands to ₹81,715 Crore
IIFCL’s standalone loan book grew to ₹81,715 crore, marking a nearly 17% increase over FY25. The company continued to diversify its portfolio across infrastructure sectors, aligning with national development priorities.
The management said this balanced approach supports emerging opportunities in India’s rapidly expanding infrastructure landscape.
Asset Quality Improves Sharply
The company reported significant improvement in asset quality during FY26:
- Gross NPA ratio fell to 0.4%, down from 1.11%
- Net NPA ratio reduced to 0%
This indicates stronger credit discipline and improved recovery performance.
Strong Capital Position and Rising Net Worth
IIFCL’s financial base strengthened further, with net worth increasing to ₹17,898 crore in FY26 from ₹16,395 crore in the previous year.
The Capital to Risk-Weighted Assets Ratio (CRAR) stood at 20.53%, well above regulatory requirements, reflecting strong capital adequacy and financial stability.
Steady Growth in Operating Income and Profitability
The company reported sustained growth in core operations over the past five years:
- Operating income rose from ₹3,618 crore (FY22) to ₹6,972 crore (FY26)
- Operating profit increased from ₹1,168 crore to ₹2,197 crore in the same period
This highlights continued expansion in its financing operations despite short-term profit volatility.
About IIFCL
India Infrastructure Finance Company Limited (IIFCL) is a government-owned financial institution that plays a key role in funding infrastructure development projects across India. It supports long-term infrastructure growth through loans, financing solutions, and strategic investments in key sectors.
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