IDFC First Bank share price jumped 9.48% on BSE in Monday’s trading session after the company reported a strong set of numbers during the April-June quarter earnings on 25 July.
IDFC First Bank shares opened at ₹85.70 apiece today, as compared to the previous close of ₹80.83. The banking stock touched an intraday high of ₹88.70 on 27 July.
IDFC First Bank Q1 results 2026
Private sector lender IDFC First Bank announced its financial results for the quarter ended June 2026 (Q1 FY27) on Saturday, July 25, reporting a strong improvement in earnings driven by robust growth in core income and lower provisioning.
The bank’s net profit more than doubled year-on-year (YoY) to ₹1,075 crore in the June quarter, marking a 132.2% increase from ₹463 crore reported in the same period last year.
Net interest income (NII), which measures the difference between interest earned and interest paid, rose 21% YoY to ₹5,972 crore, compared with ₹4,933 crore a year ago, supported by healthy growth in the bank’s lending business. The bank’s net interest margin (NIM) improved to 5.96% in Q1 FY27 from 5.71% in Q1 FY26, an increase of 25 basis points, while it was up 3 basis points sequentially.
Operating profit climbed 14% YoY to ₹2,553 crore during the quarter, compared with ₹2,239 crore in the corresponding period last year.
Meanwhile, provisions fell to ₹1,144 crore from ₹1,659 crore a year earlier, although they increased from ₹869 crore recorded in the March quarter.
The bank also reported an improvement in asset quality on a sequential basis. Gross non-performing assets (GNPA) declined to 1.51% at the end of the June quarter from 1.61% in the March quarter, while net non-performing assets (NNPA) eased to 0.44% from 0.48% over the same period.
“At the core, we are building a high-quality banking institution with high governance standards. We are seeing strong business momentum. We are happy to share that our asset quality continues to improve with Gross NPA of 1.51% and net NPA of 0.44%. Our provisions as a % of loans continue to come down. During this quarter, we got a CGFMU claim of ₹515 crores. We created a provision of Rs. 515 crore on a prudent basis towards any possible impact of monsoon or fuel price volatility in the rest of the year. Finally, we believe the benefits of investments we have been making in building the bank have started playing out in operating leverage, improving our PAT to Rs. 1,075 crore in Q1FY27. ROA crossed 1%,” said V Vaidyanathan, MD and CEO at IDFC First Bank.
IDFC First Bank share price – Should you buy or sell?
Brokerage firm Motilal Oswal has reiterated its ‘buy’ rating on the IDFC First Bank stock, with a revised target price of ₹90, seeing an upside potential up to 11%.
“We raise our FY27/28E earnings by 21%/12%, factoring in an improved asset quality outlook, and estimate RoA/RoE of ~1.0%/8.9% for FY27. Reiterate Neutral with a revised TP of INR90 (1.4x Mar’28E ABV),” the firm said.
Meanwhile, Harshal Dasani, Business Head – INVasset PMS, believes that the framework for fresh positioning is that the structural story, a high-margin retail bank exiting its credit-cost hump, is visibly on track, but the stock closed 1.3 percent higher around ₹81 into the results, within sight of its 52-week high of ₹87, so the milestone is being priced quickly.
“Durable re-rating needs two or three consecutive quarters at this profit run-rate without one-off assistance, and entries on consolidation carry better risk-reward than chasing the results pop. Constructive on the franchise trajectory, patient on the entry point,” Dasani said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
