India Infrastructure Finance Company Ltd (IIFCL) reported a 39 percent year-on-year surge in net profit (PAT) to Rs 2,165 crore for FY25, up from Rs 1,552 crore in FY24. “The record high figure was achieved, despite all the headwinds and volatility faced in the infrastructure sector,” PR Jaishankar, MD, IIFCL, said on Thursday. Jaishankar also stated that the company is planning to come out with an IPO soon, as it needs more resources to increase its lending capacity.
“It’s a work in progress; the timeline for the same is, however, not yet decided,” he told Moneycontrol. IIFCL is a government-owned NBFC that caters to the long-term financing needs of India's infrastructure sector.
It is amongst the most diversified public sector infrastructure lenders in terms of eligible infrastructure sub-sectors and product offerings. As of March 2025-end, IIFCL has sanctioned over 800 projects with a total project cost of Rs 14.5 lakh crore.
The non-banking financial company (NBFC) recorded a profit-before-tax (PBT) of Rs 2,776 crore, up 37 percent year-on-year, in FY25. The PAT in FY25 was also over 40 percent higher than the net profit recorded in FY20, highlighted Jaishankar.
IIFCL’s total assets stood at Rs 81,572 crore as of FY25-end, which the company is aiming to increase to over Rs 1 lakh crore by June, Jaishankar said.
As of March end, the sub-sectors that the lender has financed are airports, energy infrastructure, urban infrastructure, roads, renewable energy products, and ports. IIFCL also aims to finance affordable housing in the public-private partnership (PPP) model in the current financial year, sanction more loans in the agriculture sector, and finance building data centres, Jaishankar told reporters during a press briefing.
India’s economy is resilient and its fundamentals are strong, and thus any uncertainty will have a minor impact, said the MD.
The NBFC’s specific focus is to finance India’s renewable energy infrastructure, and as of FY25-end, the company has financed 11% of India’s installed renewable energy capacity.
In FY25, the company’s net worth rose 15% on year to Rs 16,395 crore, up from Rs. 14,266 crore in FY24 and 59 percent higher than Rs 10,306 crore in FY20, signalling increasing capacity for IIFCL to lend more to infrastructure projects with higher exposure limits. The net NPA ratio of the company reduced by March-end to an all-time low of 0.35 percent, and the gross NPA ratio reduced to 0.46 percent .
The proportion of IIFCL’s assets externally rated ‘A’ and above increased to about 93 percent as of March 31, 2025 (up from 88 percent as of March 2024 and ~43 percent in March 2020), indicating continuous improvement in the quality of the company’s assets, said the MD. IIFCL’s Capital to Risk-weighted Assets (CRAR) stood at 23.44%, much above the regulatory norms, as on March-end.
IIFCL’s return on paid-up capital increased to 21.6% by FY25-end, up from 15.5% year ago; and return on net worth improved to 14.1%, up from 11.4%. The NBFC’s return on assets improved to 2.96% by FY25-end, up from 2.53% a year back.
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