IIFL Capital Services Limited , a prominent player in the Indian financial services sector, has recently received an Environmental, Social, and Governance (ESG) rating of 79 from CFC Finlease Private Limited, a SEBI-registered ESG Rating Provider. This development marks a significant milestone for IIFL Capital Services in its journey towards sustainable and responsible business practices.

ESG Rating Details

The ESG rating, which was assigned voluntarily based on publicly available information, reflects IIFL Capital Services' performance across environmental, social, and governance factors. Here's a breakdown of the key information:

Regulatory Compliance

In line with its commitment to transparency and regulatory compliance, IIFL Capital Services promptly informed the stock exchanges about this development. The company made the disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The official intimation to the stock exchanges was made on October 23, 2025, by Meghal Shah, the Company Secretary of IIFL Capital Services Limited. This prompt disclosure underscores the company's adherence to regulatory requirements and its commitment to keeping shareholders and the market informed about significant developments.

Implications of the ESG Rating

The ESG rating of 79.00 assigned by CFC Finlease is a positive indicator of IIFL Capital Services' performance in areas related to environmental sustainability, social responsibility, and corporate governance. While the specific breakdown of the rating across these three areas is not provided, the overall score suggests a strong commitment to ESG principles.

For investors and stakeholders, this rating offers valuable insights into IIFL Capital Services' non-financial performance and risk management practices. As ESG factors continue to gain importance in investment decision-making processes, such ratings can potentially influence investor perceptions and the company's market position.

It's important to note that while this rating provides a snapshot of the company's ESG performance, stakeholders should consider it as part of a broader analysis of the company's overall financial and non-financial metrics.

As the financial services sector increasingly embraces sustainable and responsible business practices, IIFL Capital Services' ESG rating may position it favorably among peers and potentially attract investors who prioritize sustainability in their investment decisions.

IIFL Capital Services Limited , a prominent player in the Indian financial services sector, has reported a robust performance for the first quarter, with significant growth in revenue and strategic expansion in its wealth management division.

Financial Highlights

The company's consolidated revenue stood at Rs. 680.00 crores, marking a substantial 19% increase quarter-on-quarter (QoQ) and a 6% year-on-year (YoY) growth. This performance was driven by strong results across various business segments:

• Institutional and investment banking revenue nearly doubled from the previous quarter.
• Retail brokerage increased by 15% QoQ, despite a 28% YoY decline due to regulatory changes implemented in December.
• Distribution income rose impressively by 37% YoY to Rs. 145.00 crores.
• Other income surged to Rs. 63.00 crores from Rs. 4.00 crores in the previous year, primarily due to mark-to-market gains on BSE shares.

The company's profit after tax (PAT) reached Rs. 176.00 crores, representing a significant 37% increase QoQ, although it was down 4% YoY.

Strategic Shift towards Wealth Management

IIFL Capital Services is actively transforming its retail broking segment into a comprehensive wealth management and financial planning practice. As part of this strategic shift, the company has:

• Added approximately 50 relationship managers (RMs) to its wealth management team.
• Focused on targeting clients with net worth in the ranges of Rs. 5-25 crores and above Rs. 25 crores.
• Increased employee costs by 36% YoY to Rs. 176.00 crores, reflecting the expansion in headcount and recruitment of wealth management professionals.

Market Share and Trading Volumes

Despite regulatory changes affecting expiry dates in the derivatives market, IIFL Capital Services has maintained its market position:

The average daily turnover was Rs. 2,23,232.00 crores, with derivatives accounting for Rs. 2,20,263.00 crores and cash segment at Rs. 2,968.00 crores.

Management Commentary

R. Venkataraman, Managing Director of IIFL Capital Services, commented on the results during the earnings call: "We believe that we are well-placed to succeed in this transformation given the fact that we have a suitable networth, we have a pan-India distribution reach, a critical mass of customers, technology as well as research credentials."

He also highlighted the company's approach to wealth management, stating, "We have to segment our customers because we have a large base of customers with less than 1 crore network and the segment which we are targeting will be say maybe in the 5 to 25, greater than 25 crores."

Future Outlook

While the company refrains from providing specific guidance, management expressed optimism about the deal pipeline in investment banking for the full year, despite potential short-term volatility. The focus on growing the distribution AUM, which stood at Rs. 35,700.00 crores this quarter, remains a key priority for IIFL Capital Services.

As the company continues its strategic transformation, investors and market watchers will be keenly observing the progress of its wealth management initiative and its impact on overall financial performance in the coming quarters.