IIFL Samasta Finance Bonds

IIFL Samasta Finance Overview

IIFL Samasta is the microfinance-focused subsidiary of IIFL Finance Limited and one of India's larger NBFC-MFIs. It provides small-ticket loans to underserved households, particularly women borrowers in rural and semi-urban areas. Its lending model includes group-based loans to members organised into Joint Liability Groups (JLGs).

The company has gradually diversified beyond traditional microfinance. As of September 30, 2026, its loan portfolio comprised group loans (82%), MSME loans (15%) and dairy cattle loans (3%). The MSME portfolio includes both secured and unsecured lending, with a focus on customers graduating from microfinance.

Parent support: IIFL Finance held 99.56% of IIFL Samasta as of March 31, 2026. CRISIL has noted that the parent has infused approximately ₹1,140 crore into the company, has representation on its board and is actively involved in treasury management. This support is a key factor behind IIFL Samasta's credit rating.

Scale and reach: As of September 30, 2026, IIFL Samasta served 20.7 lakh customers through 1,613 branches. It operates across 22 states.

AUM recovery: The company's AUM declined from ₹14,211 crore in March 2024 to ₹9,681 crore in December 2025 amid the industry-wide microfinance downturn. It subsequently increased to ₹10,501 crore in March 2026, ₹10,813 crore in June 2026 and ₹10,816 crore in September 2026.

Funding profile: IIFL Samasta had a lender base of more than 52 institutions as of December 2025. Its borrowing mix included bank funding, NCDs, direct assignments, pass-through certificates (PTCs), subordinated debt, refinance and commercial paper.

Financial performance: The company reported a loss of ₹39 crore in the nine months ended December 2025, reflecting elevated credit costs. Profitability subsequently improved, with PAT of ₹130.2 crore in H1 FY27, compared with a loss of ₹57.9 crore in H1 FY26.

Sources: IIFL Finance H1 FY27 investor presentation; CRISIL rating rationale dated January 27 and August 24, 2026; Acuité rating release dated February 11, 2026.

History of IIFL Samasta Finance

IIFL Samasta's origins date back to 1995, when the company was incorporated as Colanac Finance Limited. It began its current microfinance operations in March 2008 by taking over the NBFC.

Narayanaswamy Venkatesh, who is the company's Managing Director, played a key role in establishing the business. IIFL Finance acquired a significant stake in the company in FY'17, making it the group's microfinance arm.

The company subsequently expanded its branch network and lending operations across India. In September 2021, it changed its name from Samasta Microfinance Limited to IIFL Samasta Finance Limited.

AUM reached ₹14,211 crore by March 2024. However, the microfinance sector faced significant asset-quality challenges during FY'25 and FY'26, including rising borrower indebtedness, higher delinquencies and collection disruptions in certain states. IIFL Samasta's AUM declined to ₹9,681 crore by December 2025.

The company has since reported a gradual recovery in its portfolio and a significant improvement in profitability during H1 FY27.

Board of Directors and Key Management

The latest detailed director list located in the company's December 30, 2025 draft shelf prospectus includes the following seven directors:

The board list above is based on the detailed disclosure in the December 2025 draft shelf prospectus. Confirm any subsequent appointments or resignations against the latest MCA filings before publication.

IIFL Samasta Finance Shareholding Pattern

IIFL Samasta is a subsidiary of IIFL Finance Limited, a listed NBFC. IIFL Finance held 99.56% of the company's paid-up equity share capital as of March 31, 2026.

Source: IIFL Samasta's FY26 statutory disclosures.

IIFL Samasta Finance Financials

IIFL Samasta's financial performance was significantly affected by the microfinance sector downturn. PAT declined from ₹503 crore in FY'24 to ₹20 crore in FY'25. The company reported a loss of ₹39 crore in the nine months ended December 2025 as credit costs remained elevated.

However, the trend improved in FY26 and H1 FY27. The company reported FY26 PAT of ₹21.3 crore, followed by H1 FY27 PAT of ₹130.2 crore. Loan losses and provisions declined by 67% year-on-year during H1 FY27, supporting the improvement in earnings.

The H1 FY27 AUM and GNPA figures are as of September 30, 2026. FY26 revenue is reported in IIFL Finance's annual report; H1 FY27 income is from the investor presentation. GNPA for H1 FY27 is the September 30, 2026 figure.

CRISIL reported net worth, gearing and capital adequacy of ₹1,984 crore, 4.0x and 24.9%, respectively, as of June 30, 2026. The September 2026 investor presentation reports CRAR of 26.0%.

What the Financials Indicate

• AUM stabilisation: AUM declined sharply between March 2024 and December 2025 but recovered to ₹10,816 crore by September 2026. Growth has moderated, with AUM remaining almost flat sequentially between June and September 2026.
• Profitability recovery: The company reported PAT of ₹130.2 crore in H1 FY27, compared with a loss of ₹57.9 crore in H1 FY26. Lower loan-loss provisions contributed to the improvement.
• Improving asset quality: GNPA declined from 4.8% in December 2025 to 3.8% in March 2026, 3.3% in June 2026 and 2.82% in September 2026. NNPA stood at 0.86% in September 2026.
• Adequate capitalisation: CRAR of 26% and net worth of ₹1,984 crore as of June 2026 provide a capital buffer. However, the company remains reliant on continued parent support and a sustained recovery in internal accruals.
• Diversification of lending: The company has expanded beyond group-based microfinance into MSME and dairy cattle loans. These segments accounted for 18% of its AUM as of September 2026.

IIFL Samasta Finance Key Strengths

1. Backed by Marquee PE investors– Fairfax, Capital group, HSBC Mf, and Vanguard.
2. Strong Management Team: Samasta brings 17+ years of microfinance experience, supported by a senior team with 160+ years in lending and financial services.
3. Comfortable Capitalisation: CRAR of 26.50 % (well above the RBIs 15% minimum requirement)

Key Risks

• Regulatory risk:  The microfinance sector has faced multiple disruptions over the years, primarily due to regulatory and legislative changes.
• Geographical risk: 3 states Bihar, Tamil Nadu & Karnataka account for ~48% of the overall portfolio, indicating geographic concentration.

IIFL Samasta Finance Credit Rating

IIFL Samasta is rated CRISIL AA-/Stable by CRISIL and ACUITE AA-/Stable by Acuité for long-term debt. Both agencies also assign A1+ ratings to its commercial paper programmes.

CRISIL reaffirmed its ratings on January 27, 2026, citing continued support from IIFL Finance, adequate capitalisation and an established operating track record. These strengths are partly offset by geographical concentration, moderate profitability and the vulnerability of microfinance asset quality to borrower and socio-political risks.

Acuité reaffirmed its ratings on February 11, 2026. Its rationale also highlighted the moderation in earnings and elevated delinquencies in the microfinance segment, while recognising the strategic importance of IIFL Samasta to its parent.

CRISIL's September 16, 2026 credit bulletin updated bank-wise facility details and referred readers to its January 27, 2026 rating rationale. It did not announce a change to the rating.

Parent Support and Rating Considerations

IIFL Finance's support is a major factor in IIFL Samasta's ratings. CRISIL has highlighted the parent's 99.56% ownership, historical capital infusions of approximately ₹1,140 crore, board representation and involvement in treasury management.

However, parent support should not be interpreted as an unconditional guarantee of IIFL Samasta's NCD obligations. Investors should check the guarantee and security provisions of the specific instrument.

Payment Remittance Disclosures

CRISIL's January 2026 rationale and Acuité's February 2026 release also recorded instances in which small interest amounts could not be credited to certain investors because of incomplete or incorrect beneficiary bank details. The company maintained the relevant amounts in separate escrow accounts, and the agencies kept the ratings unchanged.

Investors should distinguish these disclosed remittance issues from the company's broader credit and liquidity position, while still reviewing the relevant exchange disclosures and payment records.