{"id":12699,"date":"2025-07-29T11:09:22","date_gmt":"2025-07-29T05:39:22","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=12699"},"modified":"2025-07-29T15:44:49","modified_gmt":"2025-07-29T10:14:49","slug":"indusind-bank-q1-results-stock-rises-2-despite-sharp-profit-decline","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/indusind-bank-q1-results-stock-rises-2-despite-sharp-profit-decline\/","title":{"rendered":"IndusInd Bank Q1 Results: Stock Rises 2% Despite Sharp Profit Decline"},"content":{"rendered":"

IndusInd Bank shares rose 2% to \u20b9819 after the lender posted its Q1FY26 financial results, which were better than expected on some counts. However, a deeper look reveals mixed signals, with declining profits, rising provisions, and cautious outlooks from brokerages.<\/p>\n

Net Profit Drops Sharply in Q1FY26<\/h2>\n

The private sector bank reported a 68% drop in standalone net profit, falling to \u20b9684 crore in Q1FY26. On a consolidated basis, profit fell even further by 72% year-over-year to \u20b9604 crore.<\/p>\n

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This sharp decline was mainly due to lower loan growth and a rise in provisions for potential bad loans.<\/p>\n<\/blockquote>\n

Click here to explore: IndusInd Bank shares price<\/a><\/i><\/span><\/p>\n

Net Interest Income Falls 14% YoY<\/h2>\n

Net Interest Income (NII) dropped 14% year-on-year, coming in at \u20b94,640 crore for the quarter. However, this was still above market expectations \u2014 Moneycontrol\u2019s poll had estimated NII at \u20b94,279 crore and profit at \u20b9559 crore.<\/p>\n

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Despite the NII beat, concerns over credit quality and slippages remain strong.<\/p>\n<\/blockquote>\n

Also Read: Lenskart Files DRHP with SEBI to Raise \u20b92,150 Crore via IPO<\/a><\/p>\n

Brokerages Share Mixed Views: Should You Buy, Sell, or Hold?<\/h2>\n

The market is divided on the stock’s future. Here\u2019s how leading brokerages have responded:<\/p>\n

Macquarie \u2013 Underperform | Target \u20b9650<\/h3>\n

Macquarie is cautious with an underperform rating, pointing to a potential downside of 19% from the last close. While Q1 results were supported by higher NIMs and treasury gains, these were offset by weak fee income and elevated credit costs.<\/p>\n

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It expects RoAs to remain below 1% in the near term.<\/p>\n<\/blockquote>\n

CITI \u2013 Sell | Target \u20b9765<\/h3>\n

CITI also issued a sell rating, stating that while legacy issues didn\u2019t resurface, fee-to-assets fell to 1.2% and credit costs remained high at 2%.<\/p>\n

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Stress in the vehicle finance and retail segments led to overall slippages of 3%.<\/p>\n<\/blockquote>\n

CLSA \u2013 Hold | Target \u20b9725<\/h3>\n

CLSA has taken a neutral stance, noting that management is focused on stabilising the business, and has submitted MD & CEO nominations to the RBI.<\/p>\n

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Loans and deposits both fell 3% QoQ, mostly due to weakness in the wholesale segment.<\/p>\n<\/blockquote>\n

Bernstein \u2013 Outperform | Target \u20b91,000<\/h3>\n

Bernstein remains optimistic with an outperform rating, stating that previous clean-up efforts haven\u2019t caused new damage. However, it flagged persistent concerns like weak asset quality, low fee income, and subdued NIMs.<\/p>\n

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It noted the lack of clear levers to boost Return on Assets (RoA) in the short term.<\/p>\n<\/blockquote>\n

Capital Adequacy and Stock Performance<\/h2>\n

As of June 30, 2025, Total Capital Adequacy Ratio (excluding Q1 profits) stood at 16.63%, slightly down from 17.04% a year ago. So far this year, IndusInd Bank shares have declined 17%, reflecting investor concerns despite the recent 2% uptick.<\/p>\n

While the Q1 beat offered some short-term relief, the underlying issues\u2014declining profits, high slippages, and cautious broker outlooks\u2014mean that the stock may face challenges ahead. Investors are advised to tread carefully and monitor upcoming quarters for signs of recovery.<\/p>\n","protected":false},"excerpt":{"rendered":"

IndusInd Bank shares rose 2% to \u20b9819 after the lender posted its Q1FY26 financial results, which were better than expected on some counts. However, a deeper look reveals mixed signals, with declining profits, rising provisions, and cautious outlooks from brokerages. Net Profit Drops Sharply in Q1FY26 The private sector bank reported a 68% drop in […]<\/p>\n","protected":false},"author":10,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1386],"class_list":{"0":"post-12699","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1386,"user_id":10,"is_guest":0,"slug":"ruchikadave","display_name":"Ruchika Dave","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/07\/Ruchika-Dave.jpg","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/07\/Ruchika-Dave.jpg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/12699","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=12699"}],"version-history":[{"count":4,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/12699\/revisions"}],"predecessor-version":[{"id":12718,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/12699\/revisions\/12718"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/12700"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=12699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=12699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=12699"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=12699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}