Archive · 23 Jul 2026
IndusInd Bank Shares Drop Despite Q1 Profit Surge
IndusInd Bank recently reported its Q1 results, showing a 71.7% increase in net profit compared to the same period last year.
However, the share price dropped by over 6% in early trading.
The bank's net interest income and net interest margin improved, and its asset quality got better too.
Different brokerage firms have different opinions on whether to buy, sell, or hold the stock.
Some think it's a good time to buy, while others are more cautious.
The bank's return on assets improved, and it aims to reach a target of 1% by the end of the fiscal year.
IndusInd Bank's share price fell over 6% after Q1 results were announced.
Net profit increased by 71.7% YoY to ₹1,037 crore.
Net Interest Income rose by 1% YoY to ₹4,685 crore.
Asset quality improved with Gross NPA ratio falling to 3.25% from 3.43% QoQ.
Brokerage firms have mixed recommendations, with target prices ranging from ₹820 to ₹1,130.
- Who
- IndusInd Bank
- What
- Reported Q1 results with a 71.7% YoY increase in net profit but a 6% drop in share price.
- When
- Fiscal first quarter ended June 2026
- Where
- India
- Why
- The share price drop is attributed to market reaction to the Q1 results, despite strong earnings.
Brokerage Recommendations
Market Performance and Outlook
Brokerage Recommendations
Brokerage Recommendations
Motilal Oswal Financial Services raised earnings estimates by 18-19% for FY27 and FY28, maintaining a 'Neutral' rating with a target price of ₹1,125.
Market Performance and Outlook
JPMorgan retained an 'Underweight' rating with a target price of ₹820, noting that current valuations already discount the asset quality turnaround.
Market Performance
Brokerage Recommendations
Equirus Securities downgraded the stock to 'Reduce' with a target price of ₹1,055, citing modest core profitability and pressure on NIM.
Market Performance and Outlook
Systematix raised the target price to ₹1,050 with a 'Hold' rating, noting evolving factors on growth and asset quality.
- Net Profit
- ₹1,037 crore (71.7% YoY increase)
- Net Interest Income (NII)
- ₹4,685 crore (1% YoY increase)
- Net Interest Margin (NIM)
- 3.35% (down from 3.46% YoY)
- Gross NPA Ratio
- 3.25% (down from 3.43% QoQ)
- Net NPA Ratio
- 0.95% (down from 1.00% QoQ)
- Return on Assets (RoA)
- 0.78% (improved from 0.45% QoQ)
- Brokerage Target Prices
- ₹1,125 (Motilal Oswal), ₹1,130 (JM Financial), ₹1,055 (Equirus), ₹1,050 (Systematix), ₹820 (JPMorgan)
