IndusInd Bank share price fell over 4% in early trade on Thursday after the private sector lender reported its Q1 results. IndusInd Bank shares declined as much as 4.7% to ₹1,019.65 apiece on the BSE.
IndusInd Bank reported 47% year-on-year (YoY) jump in standalone net profit to ₹1,003 crore for the fiscal first quarter ended June 2026, supported by fall in provisions.
The bank’s Net Interest Income (NII) in Q1FY27 rose 1% to ₹4,685 crore from ₹4,640 crore, YoY, while net interest margin (NIM) improved to 3.57% from 3.46%, YoY.
Asset quality of IndusInd Bank improved sequentially, as Gross NPA ratio in the June quarter fell to 3.25% from 3.43% in the March quarter, while Net NPA ratio declined to 0.95% from 1.00%, QoQ.
Yield on assets stood at 8.62% as compared with 9.15% in the year-ago period, while cost of funds improved to 5.05% from 5.69% in the corresponding period last year.
Business momentum picked up sequentially, led by strong growth in the corporate segment, while retail book growth remains muted. Deposit growth was driven by higher retail deposits, taking the retail deposit share to 49.5% of total deposits.
Should you buy, sell or hold IndusInd Bank shares after Q1 results?
IndusInd Bank reported strong earnings during the June quarter, supported by healthy operating performance and one-off income. Consequently, RoA in Q1FY27 improved to 0.78% from 0.45% in Q4FY26, with the bank maintaining the target of an exit RoA of ~1% by the end of FY27.
Brokerage firm Motilal Oswal Financial Services raises its earnings estimates for IndusInd Bank by 18% – 19% in FY27 and FY28, and projects the lender’s RoA at 0.7% and 1.0% for FY27 and FY28E.
It reiterated ‘Neutral’ rating and raised IndusInd Bank share price target to 1,125 apiece, based on 1.2x March 2028E ABV.
JM Financial revised its FY27 – FY28 EPS estimates upwards by 6% – 26% and built in average RoA and RoE of 0.9% and 7.6% over FY27 – FY28. With the recovery largely priced in after IndusInd Bank stock’s recent run, the brokerage firm maintained an ‘Add’ rating and raised IndusInd Bank share price target to ₹1,130 from ₹925 earlier, valuing the bank at 1.2x FY28E P/BV.
Despite sequential improvement in asset quality and business growth, Equirus Securities remains cautious on the pace of earnings recovery of IndusInd Bank.
“Core profitability remains modest, with FY28E RoA of ~1.1%, while NIM is likely to remain under pressure in the near term due to an adverse loan mix. Consistent execution over the next few quarters, translating into sustained RoA improvement, will be critical to establish confidence in the recovery trajectory,” said the brokerage house.
Equirus Securities raised its FY27 earnings estimates by 2%, but downgraded the stock to ‘Reduce’ from ‘Add’, with a March 2027 target price of ₹1,055.
Systematix revised its estimates based on the evolving factors on growth and asset quality. Based on its revised estimates, it raise IndusInd Bank share price target price to ₹1,050 apiece from ₹975 earlier, and maintained a ‘Hold’ rating on the stock.
It values the standalone bank at 1.2x on its FY28E adjusted book value per share of ₹908.
At 9:25 AM, IndusInd Bank share price was trading 3.79% lower at ₹1,029.30 apiece on the BSE.
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