IndusInd Bank rises 2% on posting Q1 results; Should you buy, sell or hold?

IndusInd Bank Q1 results review: IndusInd Bank reported a 72 per cent decline in net profit; here's how brokerages' view IndusInd Bank shares post Q1

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IndusInd Bank Q1 results review: IndusInd Bank shares rose 2 per cent in trade on Tuesday (July 29, 2025), logging an intra-day high at ₹819 per share on BSE after posting Q1 results.   

Around 9:25 AM, IndusInd Bank share price was up 1.73 per cent at ₹816.05 per share. In comparison, Sensex was down 0.07 per cent at 80,836.48. 

  IndusInd Bank released its first quarter ended June 2025 (Q1FY26) numbers on Monday, after market hours. Even though brokerages maintained their stance on IndusInd Bank stock, they saw asset quality deterioration, lower fee income, and subdued net interest margin (NIM) as issues that persisted in Q1. This was after, in the previous quarter (Q4FY25), the bank reported discrepancies in the derivatives and microfinance segments. 

IndusInd Bank Q1 results 

IndusInd Bank reported a 72 per cent year-on-year (Y-o-Y) decline in net profit to ₹604 crore in Q1FY26, as compared to ₹2,170.79 crore. The bank’s net interest income (NII) declined 14 per cent Y-o-Y during the April-June period to ₹4,640 crore due to a shrinking loan book. Sequentially, NII was up 52 per cent. Other income was down 12 per cent Y-o-Y to ₹2,157 crore.

 

The private sector lender’s NIM declined 79 basis points (bps) Y-o-Y to 3.46 per cent, but increased 121 bps sequentially.

 

Provisions and contingencies of the lender increased 68 per cent Y-o-Y to ₹1,760 crore in Q1FY26, but sequentially, it was down 30 per cent. The bank reported fresh slippages to the tune of ₹2,567 crore in the quarter, with ₹2,322 crore. In the previous quarter, the bank’s fresh slippages were ₹5,014 crore.

 

As a result, the bank’s asset quality deteriorated, with gross non-performing assets (NPA), as a percentage of gross advances, increasing to 3.64 per cent at the end of June quarter, compared to 3.13 per cent at the end of March quarter.  ALSO READ | IT stocks brace for more pain post muted Q1 show; analysts share strategy

Brokerages' view on IndusInd Bank

Nuvama Institutional Equities has reiterated a 'Reduce' rating on with a target price of ₹600 per share as it sees the risk-reward as unfavourable with the bank's return on asset (RoA) unlikely to get close to 1 per cent through FY27.

 

Global brokerage Citi has maintained a 'Sell' rating with a target of ₹765 per share, according to reports. The brokerage sees earnings reset in progress. It believes slippages have normalised after a one-off in Q1, but still are elevated. Weaker growth and higher credit cost were partially offset by better NIM and treasury gains.

 

Macquaire has reiterated an 'Underperform' rating with a target of ₹650 per share. For the brokerage, RoA less than 1 per cent looks like the new normal.

 

Meanwhile, Bernstein maintained 'Outperform' on the stock with a target of ₹1,000 per share, according to reports. The brokerage sees a lack of clear levers for the near-term in RoA, which may prompt a reassessment of IndusInd Bank's profitability.

 

Analysts at Motilal Oswal continued with a 'Neutral' rating, but raised the target to ₹830 per share from ₹800. The brokerage also raised its earnings estimates slightly by 2.6 per cent/2.3 per cent for FY26/FY27, as it sees signs of recovery in operating metrics post Q4 reset. It projects the bank's RoA at 0,7 per cent and return on equity (RoE) at 6.4 per cent in FY27.