IndusInd Bank shares drop 4% even as analysts hike target post Q3

Shares of IndusInd Bank fell over 4 per cent on Tuesday, even as analysts upped the stock's target price after its net profit for the December quarter fell 91 per cent year-on-year (Y-o-Y) to ₹128 crore. 

 

The lender's stock fell as much as 4.6 per cent during the day to ₹851.1 per share, the biggest intraday fall since January 20 this year. The stock pared losses to trade 2.6 per cent lower at ₹869 apiece, compared to a 0.26 per cent decline in Nifty 50 as of 9:33 AM. 

 

Shares of the company fell for the third straight session and currently trade at 9.4 times the average 30-day trading volume, according to Bloomberg. The counter has risen 0.6 per cent this year, compared to a 4.3 per cent decline in the benchmark Nifty 50. IndusInd Bank has a total market capitalisation of ₹67,705.60 crore. 

 

IndusInd Bank Q3 results 

IndusInd Bank reported a 90 per cent decline in its consolidated net profit to ₹128 crore in the December quarter of the financial year 2025–26 (Q3FY26). On a sequential basis, the bank swung to profit from a loss of ₹437 crore.

 

Net interest income (NII) of the bank was down 13 per cent Y-o-Y to ₹4,562 crore, as its loan book shrunk 13 per cent Y-o-Y and 3 per cent quarter-on-quarter (Q-o-Q) to ₹3.17 trillion. The bank’s wholesale book has de-grown by 28 per cent Y-o-Y to ₹1.12 trillion, with the large corporate portfolio shrinking 40 per cent Y-o-Y.

 

Asset quality of the bank improved with gross NPAs declining to 3.56 per cent at the end of Q3FY26, down 4 bps from the previous quarter, and net NPAs standing at 1.04 per cent.  ALSO READ | Q3 Results Today

Analysts on IndusInd Q3 earnings

Motilal Oswal said IndusInd Bank reported largely in-line profit after tax, though provisions stayed elevated due to continued stress and slippages in the microfinance segment. Other income was broadly in line, treasury income was flat, and operating expenses remained stable.

 

The brokerage expects loan growth to broadly match industry levels by the exit quarter of FY27 and outpace the industry in FY28. Earnings estimates for FY27 and FY28 have been largely maintained, and Motilal Oswal reiterated its 'Neutral' rating with an upwardly revised target price of ₹930 per share.

 

Antique Stock Broking said stress in the microfinance segment is expected to bottom out over the next quarter in line with industry trends, supporting a gradual normalisation in asset quality and credit costs.

 

The brokerage noted that, given the bank’s growth ambitions and return on equity below 10 per cent, a capital raise is likely and remains a key catalyst. It maintained a 'Hold' rating while revising the target price upward to ₹950 from ₹780 earlier.

 

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