IIFL Finance Limited has released its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26, disclosing a monetary penalty of ₹5.30 Lakhs imposed by the Reserve Bank of India (RBI) for failure to classify certain accounts as non-performing assets. The report, which forms an integral part of the Annual Report, received reasonable assurance from TUV India Private Limited and covers the company's performance on environmental, social, and governance parameters.

The company reported a total workforce of 16,722 employees as of March 31, 2026, with women comprising 26.80% of the staff. IIFL Finance recorded one fatality during the year resulting from an accident during the course of official work. The report highlights that the company spent 0.38% of its total revenue on employee well-being measures, down from 0.46% in the previous year.

Financial and Governance Disclosures

The BRSR details a ₹5.30 Lakhs penalty levied by the RBI via an order dated February 06, 2026. The regulator cited deficiencies in compliance regarding the classification of restructured accounts as of March 31, 2024. The company stated that the action was based on these deficiencies and not intended to pronounce upon the validity of any transaction or agreement entered into with customers.

IIFL Finance's Board-level ESG Committee, chaired by Joint Managing Director Mr. R Venkataraman, oversees the company's sustainability initiatives. The company has defined clear ESG targets and, during the year, its Board approved its first Social Financing Framework, which received a “Good” Second Party Opinion by Sustainable Fitch.

Environmental Performance

The company disclosed its greenhouse gas emissions and energy consumption for FY 2025-26. Total Scope 1 emissions stood at 453.64 TCo2e, while Scope 2 emissions were 13,273.09 TCo2e. The total energy consumed was 69,790.75 GJ, with 2,155.99 GJ sourced from renewable energy. Water consumption totaled 1,02,539.88 kiloliters, and the company generated 12.02 tonnes of waste, which was recovered through other recovery operations.

Social and Stakeholder Engagement

The company reported receiving 40,530 customer complaints during FY 2025-26, with 53 pending resolution at the end of the year. Additionally, 13 complaints related to sexual harassment were filed, representing 0.003% of female employees. The company noted that 100% of permanent employees are covered under health and accident insurance.

IIFL Finance engaged in various CSR projects, benefitting over 16 lakh individuals, with a significant focus on vulnerable and marginalized groups. The company also reported that 45% of its inputs were directly sourced from MSMEs or small producers, and 98% were sourced from within India.

Moody's has assigned a Ba3 Corporate Family Rating (CFR) and a (P)Ba3 rating to the Global Medium Term Note (GMTN) program of IIFL Finance , with a stable outlook. The ratings reflect Moody's formal evaluation of the company's overall creditworthiness and its international debt program.

Rating Details

The following table summarizes the ratings assigned by Moody's to IIFL Finance:

Significance of the Ratings

The Ba3 Corporate Family Rating represents Moody's assessment of IIFL Finance's overall ability to meet its financial obligations. The (P)Ba3 provisional rating assigned to the GMTN program indicates the agency's view of the credit quality associated with notes that may be issued under the program. Both ratings carry a stable outlook, signifying that Moody's does not anticipate a near-term change in the assigned ratings based on its current assessment.

The GMTN program enables IIFL Finance to raise funds from international debt capital markets, and the Moody's rating provides a standardized credit benchmark for global investors evaluating the company's debt instruments.