IIFCL Breaks Records: Can We Expect an IPO Soon? What's Next

What does it take to power a nation’s growth? For India, infrastructure is more than roads, bridges, or airports — it’s the very foundation on which its economic dreams are built. And at the heart of this transformation story is the state-owned India Infrastructure Finance Company Limited (IIFCL), which has quietly but powerfully emerged as a key enabler of India's ambitious development roadmap.

In a significant milestone, IIFCL has reported its highest-ever net profit of Rs 2,165 crore for FY25, marking an impressive 39% year-on-year jump from Rs 1,552 crore in FY24. For most companies, a single record-breaking year is a win. But for IIFCL, this is the fifth consecutive year of outperforming itself, as it continues to build muscle as India’s infrastructure financier.

"This year’s results underscore our unwavering focus on core operations and high-quality lending,” said P.R. Jaishankar, Managing Director of IIFCL, during the company’s annual financial announcement. “It’s not just a good year—it’s a culmination of disciplined growth,” he added, revealing that net profit has grown 42-fold compared to FY20.

IIFCL IPO Soon? What to Expect

What makes this performance even more noteworthy is IIFCL’s future vision. The company is now setting its sights on the capital markets, preparing for a potential Initial Public Offering (IPO) that could significantly enhance its lending capabilities.

“We are actively working towards an IPO, though a timeline is yet to be finalized,” Jaishankar told Moneycontrol. “The idea is to strengthen our capital base and support India’s growing infrastructure ambitions.”

Big Numbers, Bigger Impact

Behind these profit figures lies a story of operational excellence and strategic execution:

• Profit Before Tax (PBT) rose by 37% to Rs 2,776 crore in FY25 from Rs 2,029 crore last year.

• Net worth climbed 15% to Rs 16,395 crore.

• Standalone loan portfolio surged 37% to Rs 69,904 crore — up from Rs 51,017 crore in FY24.

But the headline figures only tell part of the story. The real strength lies in IIFCL’s ability to lend more, and lend better.

During FY25, the company achieved record sanctions worth Rs 51,124 crore and disbursements of Rs 28,501 crore — the highest in its history. As of March 31, 2025, cumulative sanctions and disbursements stood at Rs 3.06 lakh crore and Rs 1.56 lakh crore, respectively.

A Cleaner, Stronger Portfolio

Even as lending expanded, asset quality improved, which is often a challenging balance to strike in large-scale finance.

• Gross NPAs dropped from 1.61% to 1.11%.

• Net NPAs fell to 0.35% from 0.46%.

• The share of assets rated ‘A’ and above rose to 93%, a dramatic leap from 43% in FY20.

These numbers reflect a strategic pivot toward cleaner, safer, and more credit-worthy lending, reaffirming IIFCL’s commitment to financial discipline even while scaling up.

Additionally, the Capital Adequacy Ratio (CRAR) stood at a robust 23.44%, well above regulatory norms, showing the company’s cushion to withstand any shocks and continue financing confidently.

Investing in the India of Tomorrow

IIFCL’s investments have mirrored the nation’s growth priorities. From energy and roads to airports, ports, and urban infrastructure — the company is present wherever India is building its future. Notably, there’s a rising emphasis on renewables, urban transformation, and transport logistics, all of which are essential to making India’s cities smarter and cleaner.

The financier has also deepened its involvement in long-term financial instruments:

• Infrastructure Bonds: Rs 29,102 crore

• InvITs (Infrastructure Investment Trusts): Rs 14,220 crore (as of March 2025)

Looking ahead, IIFCL aims to raise over Rs 30,000 crore in the current financial year to fund its growing project pipeline. It is also looking to diversify its lending into critical new areas such as affordable housing (under the PPP model), agriculture-linked infrastructure, and data centers — sectors that align with the government’s inclusive development agenda.

India’s Infrastructure Momentum is Real

As the world faces global economic uncertainties, Jaishankar remains optimistic about India’s position. “India’s economy is resilient and its fundamentals remain strong, so any external uncertainty will have minimal impact,” he said confidently.

It’s a sentiment echoed by industry watchers. With India rapidly emerging as one of the fastest-growing major economies, infrastructure financing is no longer a policy option — it’s an urgent national imperative. And IIFCL, with its sharp focus and expanding portfolio, appears ready to rise to the occasion.

Laying Tracks for the Next Decade

For India to meet its $5 trillion economy ambition, infrastructure is the engine — and institutions like IIFCL are the engineers. From improving its balance sheet to funding mega-projects, and now preparing for an IPO, IIFCL is not just financing infrastructure — it’s helping script India’s growth story.

As the next fiscal year begins, all eyes will be on how IIFCL leverages its momentum, embraces new sectors, and continues powering the nation's dreams — brick by brick, and rupee by rupee.