23 Jul , 2026 By : Debdeep Gupta
Shares of IndusInd Bank Ltd fell 5 percent in morning trade on Thursday, emerging among the top losers on the BSE 500 and NSE 500, as a string of largely bearish brokerage reactions to its June quarter results outweighed a stronger-than-expected earnings performance. Analysts said the quarterly beat was driven largely by lower operating expenses and credit costs, while concerns over the pace and extent of the bank's recovery persisted.
IndusInd Bank stock traded at Rs 1,015.75, down 5 percent on the day. Despite Thursday's decline, the stock has gained 14.3 percent so far in 2026, outperforming the Nifty 50, which has fallen 8.3 percent. IndusInd Bank has a market capitalisation of about Rs 79,250 crore.
The private sector lender on Wednesday reported a 46.5 percent year-on-year rise in net profit to Rs 1,002.5 crore for the June quarter, well ahead of the CNBC-TV18 poll estimate of Rs 725 crore. Net interest income (NII) rose 1 percent to Rs 4,685 crore, exceeding estimates of Rs 4,460 crore. Net interest margin (NIM) improved to 3.57 percent from 3.46 percent a year earlier, while asset quality strengthened sequentially, with gross non-performing assets (GNPA) easing to 3.25 percent from 3.43 percent in March and net NPAs declining to 0.95 percent from 1 percent. Provisions also moderated during the quarter.
JPMorgan maintained its Underweight rating on IndusInd Bank stock while raising its target price to Rs 820. It said the earnings beat was largely driven by lower provisions, with core NII broadly in line. The brokerage said that core NIM declined slightly despite improving asset quality. The bank's FY27 guidance remained unchanged at industry-level loan growth and a 1 percent exit return on assets (RoA). It added that the current valuation already factors in the expected recovery.
CLSA downgraded the stock to Underperform and raised its target price to Rs 925. The brokerage acknowledged better-than-expected core pre-tax profit, supported by lower operating expenses and credit costs. But it highlighted continued weakness in fee income and NIM, with loan growth remaining largely corporate-led. It also said the stock's recent 17 percent rally appeared overdone.
On the other hand, Jefferies was bullish on the stock, retaining its Buy rating and raising its target price to Rs 1,250. The brokerage said improving trends in asset quality, loan growth and profitability support its constructive view. However, it added that any further re-rating would depend on the bank achieving a return on assets of around 1.5 percent.
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