IDFC First Bank shares extended their post-earnings rally on Tuesday, 29 July, after the private lender reported its highest-ever quarterly profit for the first quarter of FY27.
The bank posted a 132.4% year-on-year jump in profit after tax (PAT) to ₹1,075 crore for the April-June 2026 quarter, compared with ₹463 crore in the corresponding period last year.
According to its regulatory filing, total customer business rose 18.6% year-on-year to ₹6,04,776 crore as of 30 June 2026, from ₹5,10,031 crore a year earlier.
The bank’s loans and advances increased 20.6% to ₹3,05,370 crore from ₹2,53,233 crore in the year-ago period, reflecting healthy credit growth.
Asset quality also strengthened during the quarter, with gross non-performing assets (GNPA) improving to 1.51% as of 30 June 2026, from 1.97% a year ago. Net NPA declined to 0.44% from 0.55%, while the net interest margin (NIM) expanded to 5.96% from 5.71% in the corresponding quarter last year.
Nuvama Institutional Equities upgraded IDFC First Bank to ‘Buy’ from ‘Hold’, citing improving fundamentals and stronger earnings visibility.
The brokerage said the bank has built a strong retail franchise capable of delivering sustainable growth at scale. With deposit-related challenges and asset-quality stress in the microfinance and credit card segments largely behind it, Nuvama expects the bank’s growth momentum to accelerate.
It believes that improving operating efficiency and moderating credit costs will help return on assets (RoA) improve to 1.0% in FY27 from 0.4% in FY26, with further expansion to 1.2%–1.4% during FY28–FY29.
Nuvama has also raised its target price to ₹95 per share, valuing the stock at 1.4x June 2028 estimated adjusted book value, compared with around 1.2x at the current market price. The brokerage also noted that the bank plans to raise ₹7,500 crore in capital, equivalent to about 2.1% of its risk-weighted assets (RWA), to support future growth.
IDFC First Bank share price – Will it climb to a new 52-week high?
Hitesh Rathi, Technical Analyst – Equity & Derivatives at Angel One, said IDFC First Bank continues to exhibit a broadly range-bound technical structure despite building a strong support base in the ₹50–55 zone. He noted that the support is reinforced by the formation of a Bearish Pattern Reversed setup, along with a Follow-through Buy signal on the daily 1% × 3 Point & Figure chart, indicating that buying interest has emerged at lower levels.
However, Rathi cautioned that the stock has yet to confirm a meaningful trend reversal. According to him, a decisive breakout above the ₹87–90 resistance zone would trigger a Bullish Swing Breakout, potentially paving the way for the stock to move towards fresh all-time highs over the medium term. Until then, he advises investors to remain cautious and wait for a convincing breakout before taking fresh positions.
Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, said IDFC First Bank consolidated within the ₹77–83 range between 15 June and 24 July before delivering a decisive breakout on 27 July. Although the stock saw some profit-taking after the rally, it continues to trade comfortably above the upper end of its earlier consolidation range, indicating sustained buying interest.
Shah added that the widening Directional Indicator (DI) lines, with DI+ above DI-, point to strengthening bullish momentum. He also highlighted that the MACD remains above both its signal line and the zero line, reinforcing the positive technical outlook. According to Shah, the ₹82–83 zone is expected to provide immediate support, and as long as the stock sustains above this level, the ongoing uptrend is likely to continue.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
