Does excision of ilioinguinal nerve during hernia repair surgery cause any complication afterwards, like atrophy of testis or some other complications?

NO: Resection of the ilioinguinal nerve is done to prevent (or treat) chronic pain which can sometimes occur following hernia repair. If the nerve is cut during the original surgery, your surgeon is trying to prevent chronic post operative pain issues.

NO , it will not: Possible to cause injury to ilioinguinal nerve result in numbness in a small area upper medial thigh , will not cause testicular atrophy how ever vascular injury will result testicular atrophy.