IIFL Capital Services Limited has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026, pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing represents a structural change in reporting scope, moving from a standalone basis in FY25 to a consolidated basis for FY26. This expansion now includes IIFL Facilities Services Limited, a wholly-owned subsidiary, alongside the parent entity. Consequently, year-on-year comparisons for certain metrics reflect this boundary change rather than purely operational shifts.

Reporting Standards and Assurance

The company enhanced the credibility of its sustainability disclosures by upgrading the assurance level for BRSR Core parameters from limited to reasonable assurance. Kirtane & Pandit LLP served as the independent assurance provider for the engagement. Additionally, IIFL Capital achieved ISO 14001:2015 certification for its Environmental Management System and successfully completed an external surveillance audit in April 2026. The firm also maintains ISO 27001:2022 certification for information security and ISO 22301:2019 for business continuity.

Stakeholder Engagement and Grievances

Grievance redressal metrics showed marked improvement across key stakeholder groups during FY26. Consumer complaints fell from eight in the previous year to zero, while shareholder complaints decreased from 29 to seven. Complaints from value chain partners dropped significantly from 344 to 108. The company reported no pending complaints at the close of the financial year for these categories. No complaints were received regarding sexual harassment or conflict of interest involving directors or key managerial personnel.

Note: Customer complaints volume reflects high transactional activity, with all cases resolved within the year.

Human Capital and Diversity

As of March 31, 2026, the consolidated entity employed 1,559 individuals, comprising 1,553 permanent employees and six non-permanent staff. Women constituted 25% of the total workforce, an increase from 24% in FY25. Employee turnover for permanent staff declined from 25% in FY25 to 23% in FY26. The proportion of gross wages paid to female employees rose from 10.59% to 16.11%, driven by increased recruitment of women into senior roles. The company reported a 100% return-to-work rate for employees taking parental leave.

Regulatory Penalties and Compliance

The company disclosed several monetary penalties paid to regulatory bodies during the year. These included a ₹1 lakh settlement with SEBI regarding API integration with algorithmic trading platforms. National Stock Exchange (NSE) penalties totaled approximately ₹4.4 million across multiple instances, primarily related to incorrect margin collection reporting and operational discrepancies. Bombay Stock Exchange (BSE) imposed a ₹4 lakh penalty for incomplete client transition during a disaster recovery drill. Multi Commodity Exchange (MCX) and National Commodity & Derivatives Exchange (NCDEX) levied penalties of ₹210,200 and ₹378,490 respectively, related to abnormal client trades and open interest limit breaches. The company stated that corrective measures have been implemented for all cited lapses.

Environmental Footprint

Total greenhouse gas emissions (Scope 1 and Scope 2) stood at 1,540.61 metric tonnes of CO2 equivalent, up from 1,184.41 metric tonnes in FY25. This increase coincides with the expanded consolidated reporting boundary. Energy consumption from renewable sources contributed to a revised energy mix, with green power procurement utilized at the registered and corporate offices. Water withdrawal was estimated based on per capita norms, as dedicated meters are not installed across all facilities.

IIFL Capital Services Limited has incorporated a wholly owned subsidiary, IIFL Capital Services Singapore Pte. Ltd., in Singapore on July 30, 2026. The move expands the company’s international footprint, enabling it to offer business support services and management consultancy from the region. The subsidiary is fully funded through cash consideration, with IIFL Capital holding 100% of the initial share capital at a subscription price of SGD 1.00 per share.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and in accordance with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. This intimation follows an earlier announcement by the company on April 28, 2025, regarding its proposal to establish a presence in Singapore.

Incorporation Details

The Accounting and Corporate Regulatory Authority (ACRA) in Singapore approved the incorporation of the entity. The company secured a No Objection Certificate (NOC) from the Securities and Exchange Board of India (SEBI) prior to the incorporation process. As a newly incorporated entity, turnover is not applicable at this stage.

Strategic Context

The new subsidiary is classified under the industry segment of Business Support Services and Management Consultancy. Its primary mandate is to undertake business support service activities and provide management consultancy services. Being a wholly owned subsidiary, IIFL Capital Singapore Pte. Ltd. is considered a related party of IIFL Capital Services Limited.

What the Numbers Show

The establishment of a wholly owned subsidiary in Singapore signals IIFL Capital’s intent to diversify its service offerings beyond traditional securities broking into higher-value advisory and support functions. By incorporating the entity with a minimal initial capital outlay (SGD 1.00 per share), the parent company retains flexibility to scale operations based on demand while maintaining full control over the strategic direction of its international arm. The prior receipt of a SEBI NOC indicates regulatory alignment for this cross-border expansion.