IIFL Capital Services Limited reported a consolidated net profit of ₹18,416.34 Lakhs for the quarter ended June 30, 2026 (Q1FY26), reflecting a 4.9% year-on-year growth from ₹17,553.08 Lakhs in Q1FY25. Total revenue from operations increased 2.3% to ₹63,148.18 Lakhs, supported by strong performance in its capital market segment. The Board of Directors, meeting on July 23, 2026, also approved the issuance of non-convertible debentures (NCDs) aggregating up to ₹1,000 crore and noted significant developments regarding Fairfax India Holdings Corporation’s proposed acquisition of a controlling stake.

The financial results were reviewed by the Audit Committee and approved by the Board in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. V. Sankar Aiyar & Co., the Statutory Auditors, issued an unmodified limited review report on the consolidated and standalone financial statements. The company also disclosed changes in senior management designations effective July 23, 2026, including the appointment of Joint Chief Executive Officers for Private Wealth.

Financial Performance

Consolidated revenue from operations stood at ₹63,148.18 Lakhs, comprising fees and commission income of ₹51,084.59 Lakhs and interest income of ₹11,839.84 Lakhs. Other income contributed significantly to the bottom line, rising to ₹8,982.59 Lakhs from ₹6,302.83 Lakhs in the previous year, boosting total revenue to ₹72,130.77 Lakhs. Profit before tax grew 5.1% to ₹23,928.36 Lakhs. Basic earnings per share (EPS) were reported at ₹5.92, compared to ₹5.67 in Q1FY25.

Standalone net profit was higher at ₹18,900.95 Lakhs, up 19.2% from ₹15,857.42 Lakhs in the prior year quarter. Standalone revenue from operations reached ₹56,538.69 Lakhs, driven by fees and commission income of ₹44,698.85 Lakhs.

Segmental Analysis

The Capital Market Activity segment remained the primary profit driver, reporting a pre-tax profit of ₹23,655.06 Lakhs on revenues of ₹65,840.78 Lakhs. This contrasts with the Insurance Broking and Ancillary segment, which incurred a pre-tax loss of ₹256.12 Lakhs on revenues of ₹5,662.15 Lakhs. The Facilities and Ancillary segment contributed a modest pre-tax profit of ₹529.42 Lakhs.

Strategic Developments

Fairfax India Holdings Corporation, through FIH Mauritius Investments Ltd., has proposed increasing its shareholding to at least 51%. This involves a preferential issue of equity shares aggregating ~₹2,000 crores at ₹350 per share, an open offer, and arrangements with existing promoters. Shareholders approved the preferential issue at an Extraordinary General Meeting on June 01, 2026. Upon completion, Fairfax will join the Promoter Group and nominate two directors to the Board.

Regulatory and Tax Matters

The Income-tax Department conducted searches under Section 132 of the Income-tax Act, 1961, in January 2025. Subsequently, the Holding Company and two subsidiaries received tax demands totaling ₹124.37 crores via orders dated April 22, 2026, and May 07, 2026. The Company has filed appeals against these orders and applied for penalty abeyance and stay of demand. Management asserts no material adverse impact on the group’s financial position.

Management Changes

The Board approved several senior management redesignations effective July 23, 2026:

• Raghav Gupta and Prakash Bulusu as Joint Chief Executive Officers – Private Wealth
• Hardik Sanghavi as Chief Technology Officer – Institutional Equities
• Chintan Modi as Head – Growth & Business Partners
• Aditya Sisodia as Chief Technology Officer – Private Wealth

The Board of Directors of iifl capital services approved the re-designation of five senior management personnel on July 23, 2026, reshaping leadership across its private wealth, institutional equities, and technology divisions. The changes, effective immediately, aim to strengthen governance and operational focus within key business verticals. These appointments reflect a strategic realignment of executive responsibilities to drive growth in private wealth management and enhance technological infrastructure for institutional clients.

The re-designations were approved during a board meeting held on July 23, 2026, which commenced at 2:30 p.m. and concluded at 4:30 p.m. The company disclosed these changes pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Key Executive Re-designations

The Board approved the following changes in designation for senior management personnel, all effective from July 23, 2026:

All five executives continue on full-time employment terms with the company. The re-designation of Raghav Gupta and Prakash Bulusu as Joint Chief Executive Officers – Private Wealth signals a shared leadership model for this critical revenue-generating segment. Similarly, the appointment of dedicated Chief Technology Officers for Institutional Equities (Hardik Sanghavi) and Private Wealth (Aditya Sisodia) indicates a move towards specialized technological oversight for distinct client bases.

Strategic Implications

The structural changes highlight IIFL Capital Services' focus on differentiating its service offerings between private wealth and institutional clients. By assigning separate technology leaders to each vertical, the company aims to tailor digital solutions and operational efficiency to the specific needs of high-net-worth individuals versus institutional investors. The creation of the "Head – Growth & Business Partners" role for Chintan Modi suggests an increased emphasis on external partnerships and business development initiatives.

These disclosures were filed with both the Bombay Stock Exchange (BSE Scrip Code: 542773) and the National Stock Exchange of India Ltd. (NSE Symbol: IIFLCAPS). The company secretary, Meghal Shah, signed the intimation on July 23, 2026.