Analysts suggest 'buying' ICICI Bank stock, hike target price on Q1 beat

The private sector lender reported a 15.5 per cent year-on-year (Y-o-Y) rise in standalone net profit to ₹12,768 crore in Q1FY26, supported by strong treasury gains and healthy credit growth.

Brokerages on ICICI Bank: ICICI Bank – the second largest private bank of India – has impressed the Street with its robust Q1 performance, prompting several brokerages to raise their target prices even as they caution about likely near-term pressure on margins.

 

On the bourses, ICICI Bank share price rose as much as 2.09 per cent to an intraday high of ₹1,456.35 per share on robust Q1 show. 

 

Around 9:45 am, ICICI Bank share was trading 1.72 per cent higher at ₹1,451.10. In comparison, BSE Sensex was trading 0.17 per cent lower at 81,620.62 levels.  FOLLOW STOCK MARKET LIVE UPDATES TODAY 

For the April-June quarter of FY26 (Q1FY26), the private sector lender reported a 15.5 per cent year-on-year (Y-o-Y) rise in standalone net profit to ₹12,768 crore, supported by strong treasury gains and healthy credit growth. 

 

Return on assets (RoA) stood at 2.4 per cent, while the net interest margin (NIM), though down 7 basis points (bps) sequentially, remained high at 4.34 per cent. 

 

Net interest income (NII) rose 10.6 per cent Y-o-Y to ₹21,635 crore, and non-interest income excluding treasury grew nearly 14 per cent to ₹7,264 crore. The bank also benefited from ₹1,241 crore in treasury gains, nearly double the level in the year-ago period.

 

Brokerages responded positively to the Q1 results. Japan-based brokerage Nomura reiterated its ‘Buy’ call and raised its target price to ₹1,740 from ₹1,690, highlighting the bank’s continued sector-leading performance in profitability, asset quality, and growth. 

 

The brokerage said ICICI’s core pre-provision operating profit (PPoP) came in 6 per cent ahead of estimates, driven by higher-than-expected interest income, fee income, and lower operating expenses. It noted that the bank’s strong showing was further aided by muted credit costs and sustained asset quality, despite an uptick in slippages driven by seasonal agri loans.  ALSO READ | AU SFB slips 7% after posting Q1 results; brokerages suggest 'Reduce' 

Nuvama Institutional Equities also maintained a ‘Buy’ rating while revising its target price upward to ₹1,670. It pointed out that ICICI Bank was the only major bank so far to post a beat on net interest margin despite an industry-wide trend of margin compression. 

 

While headline NIM fell 7 bps Q-o-Q, core margin slipped just 4 bps – far better than the 12-15 bps drop the market was bracing for. Nuvama cited ICICI’s superior liability strategy and strong cost discipline as key differentiators and said the beat on core earnings could lead to further re-rating of the stock.

 

Motilal Oswal shared a similar view, lifting its target price to ₹1,670 and reiterating ICICI as its top pick in the banking space. It said ICICI’s performance stood out amid a challenging environment, driven by healthy margins, strong other income, and stable provisions. 

 

While analysts at Motilal Oswal acknowledged that some pressure on margins is expected in the second quarter as loan repricing filters in, the brokerage praised the bank’s ongoing investment in digital platforms and its ability to consistently manage costs and improve efficiency.

 

Meanwhile, Emkay Global kept its target unchanged at ₹1,600 but continued to recommend the stock as a ‘Buy’. The brokerage noted that ICICI’s NIM compression of just 7 bps was far lower than the 15-20 bps seen across peers, and its RoA of 2.4 per cent remained at the top end of the sector.   ALSO READ | Reliance shares slip 2% as Q1 misses estimates; more selling ahead? 

Although credit growth moderated slightly to 11.5 per cent Y-o-Y due to slower retail disbursements, the bank continued to see strong momentum in its SME and business banking segments. Emkay expects return ratios to remain resilient over FY26–28, aided by strong cost controls, rising fee income, and contained credit costs.

 

Despite some caution on the margin front for the upcoming quarter, the Street appears confident in ICICI Bank’s ability to sail through the evolving rate environment. 

 

With all major brokerages maintaining their ‘Buy’ ratings and raising - or reaffirming - price targets in the ₹1,600 to ₹1,740 range, ICICI continues to be seen as a standout performer among Indian banks.