Infrastructure Leasing & Financial Services Limited has confirmed that no new encumbrance has been created on the shares of IL&FS Investment Managers Limited during the financial year ending March 31, 2026. The disclosure, submitted to the National Stock Exchange of India Limited, clarifies that the status of share encumbrances remains unchanged from previous filings.

The company stated that the declaration was made pursuant to Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. IL&FS acts as a promoter of IL&FS Investment Managers Limited and had previously offered its shares as security to the Debenture Trustee in FY 2013-14 to safeguard the interests of debenture holders.

The total security package offered to the Debenture Trustees includes shares of IL&FS Investment Managers Limited, creating a lien in their favour. The company noted that because the transaction is not classified as a "Loan against securities," a specific charge against the shares held by IL&FS in IL&FS Investment Managers Limited is not marked as a pledge in the records of the Depository Participant.

The following table outlines the key details of the disclosure:

IL&FS Investment Managers Limited reported a consolidated net profit of ₹478.75 lakh for the financial year ended March 31, 2026, a decline of 66% from ₹1,424.37 lakh in the previous year. The company’s total revenue for FY26 stood at ₹6,553.18 lakh, driven by revenue from operations of ₹5,490.80 lakh and other income of ₹1,062.38 lakh. The board recommended a final dividend of ₹0.70 per equity share, amounting to ₹2,198.23 lakh, subject to shareholder approval.

The board approved the audited consolidated financial results in a meeting held on May 30, 2026. KKC & Associates LLP, the statutory auditors, issued a qualified opinion on the consolidated financial results. The qualification arises from an ongoing investigation by the Serious Fraud Investigation Office (SFIO) against the holding company, Infrastructure Leasing & Financial Services Limited, and its subsidiaries. The auditors stated they are unable to comment on the consequential impacts of the investigation upon its conclusion. This qualification has appeared for the eighth time.

The auditors also flagged material uncertainties relating to unbilled revenue at a subsidiary, Andhra Pradesh Urban Infrastructure Asset Management Limited. Unbilled revenue balances aggregating to ₹1,036.61 lakh (net of write-off of ₹921.02 lakh) remained outstanding as of March 31, 2026, with ₹600.81 lakh outstanding for more than a year. Due to insufficient documentation, the auditors could not determine the recoverability of these amounts. Additionally, the subsidiary did not recognise provisions for penalties related to non-compliance with the Companies Act, 2013, including delays in board meetings and the appointment of a Chief Financial Officer.

The company faces a material uncertainty relating to its going concern status. The extended term of existing funds managed by the company ended during the year, resulting in no fee income for the holding company and a significant reduction in fee revenue for certain subsidiaries. Despite this, management assessed that existing earnings and liquid assets are sufficient to meet obligations over the next 12 months. The resolution plan for the IL&FS Group, which involves the sale of assets including the company's stake, is currently underway following an Expression of Interest invited in December 2023.

Total expenses for the year increased to ₹5,662.86 lakh from ₹3,211.91 lakh in the previous year. Profit before tax for FY26 was reported at ₹890.32 lakh compared to ₹1,452.06 lakh in FY25. Earnings per share (basic and diluted) stood at ₹0.12 for the year, down from ₹0.42 in the prior year. The company’s joint venture, IL&FS Milestone Realty Advisors Pvt Ltd, has ceased operations and its financial statements are not prepared on a going concern basis.

Consolidated Financial Performance for FY26

Key Segment and Dividend Details

The company operates as a single reportable segment providing asset management services. The board has proposed a total dividend payout of ₹2,198.23 lakh for FY26. The record date for dividend entitlement will be intimated separately. The company continues to monitor the finalization of rules related to the Labour Codes notified by the Government of India, having recognized an incremental expense of ₹77.54 lakh for the year towards gratuity obligations.