IIFL Finance shares fall nearly 18% as it gets I-T notice, firm says it's 'procedural'

IIFL Finance shares fall up to 15% as it gets I-T notice, firm says it's 'procedural'

• IIFL Finance shares fell nearly 18% after receiving an Income Tax notice
• Company says the notice is procedural with no immediate financial impact
• IIFL Finance reported a 10-fold jump in net profit for the December quarter

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Shares of IIFL Finance fell nearly 18% to hit near three-month low of Rs 511.15 apiece on January 22 as the NBFC got a notice from Income Tax Department.

The firm said that the notice is "procedural in nature".

The company has received a communication dated January 21, 2026, from the Income Tax Department directing the Company to get its accounts audited for a specified block period under Section 142(2A) of the Income Tax Act, 1961, and appointing a Special Auditor for the said purpose.

"The said direction has been issued in connection with ongoing assessment proceedings and is procedural in nature. The Company shall extend its full cooperation to the Special Auditor as required under law. There is no adjudication or determination against the Company under the said communication, and at this stage no financial impact can be ascertained," the firm said in a stock exchange filing.

For the December quarter, IIFL Finance reported a 189% year-on-year surge in its gold loans.

Net profit for the period stood at Rs 460 crore as against Rs 41 crore in the year-ago period, a 10-fold jump, while revenue for the quarter increased by 40% year-on-year to Rs 3,427.5 crore.

The company also got two tax orders from Bihar and one order from Gujarat tax department imposing combined penalty of Rs 13.3 crore.

On January 22, IIFL Finance shares closed 15% lower at Rs 528.25 apiece.

Asset quality improved in the December quarter with Gross NPA improving by 54 basis points sequentially to 1.6%, while Net NPA improving 27 basis points to 0.8%.