IndusInd Bank share price falls over 4% after Q1 results. Opportunity to buy? | Stock Market News

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.

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.

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.

Ankit Gohel is the Deputy Chief Content Producer at Livemint, specialising in financial markets, macroeconomics, and regulatory developments. With a strong focus on equity markets, primary issuances, and policy-driven market movements, he brings clarity to complex financial developments for investors and market participants. <br><br> With nine years of experience in business and financial journalism, Ankit’s approach is rooted in the belief that market reporting should go beyond headlines — connecting data, policy, and ground realities to deliver actionable insights. His work consistently bridges the gap between institutional analysis and investor understanding. <br><br> Ankit has spent three years at Livemint, where he currently helps drive market coverage, editorial strategy, and high-impact financial stories. Prior to this, he worked with leading business news networks such as CNBC-TV18, ET Now, TickerPlant News Service where he built deep expertise in stock market analysis, macroeconomic trends, primary markets, and coverage of key regulators including the RBI and SEBI. <br><br> Over the years, he has covered market cycles across bull and bear phases, IPO booms, liquidity shocks, and major policy shifts that reshaped investor sentiment. He has interviewed fund managers, corporate leaders, and policymakers, translating their perspectives into sharp, data-backed narratives. Ankit combines speed with accuracy — ensuring timely, credible, and insight-driven financial journalism that empowers both retail and institutional audiences.

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