ICICI Bank stock rose in early trade on Monday after the lender’s March quarter earnings beat estimates and brokerages turned constructive on its outlook, citing strong loan growth and sharply lower credit costs. Shares of ICICI Bank Ltd were trading at Rs 1,368, up 1.6 percent in the morning session, extending gains after closing 0.5 percent higher in the previous session ahead of the results.

The bank reported an 8.5 percent year-on-year rise in net profit to Rs 13,701.7 crore for Q4FY26, above Street estimates of Rs 12,949 crore. Net interest income (NII), a key measure of core earnings, grew 8.4 percent to Rs 22,979.2 crore, also ahead of expectations.

ICICI Bank's asset quality improved sequentially, with net NPA ratio declining to 0.33 percent from 0.37 percent and gross NPA to 1.4 percent from 1.53 percent. Provisions dropped sharply to Rs 96.2 crore from Rs 2,556 crore in the previous quarter, aiding profitability. Advances rose 15.8 percent year-on-year and 6 percent sequentially to Rs 15.53 lakh crore, while net interest margin remained stable at 4.32 percent.

Brokerages largely attributed the earnings beat to lower credit costs and steady growth momentum. Most analysts maintained positive stance on ICICI bank shares with target prices in the range of Rs 1,600-1,800 per share.

Citi has a Buy rating on ICICI Bank stock with a target price of Rs 1,720 per share. It said return on assets at 2.4 percent beat estimates, supported by strong corporate recoveries and lower retail stress. It expects loan growth of 15-16 percent, though it flagged modest fee growth and stable margins as near-term offsets.

CLSA (Outperform; target price Rs 1,700): The brokerage said that profit before tax beat estimates by 10 percent, driven by low credit costs and strong recoveries. It highlighted improvement in loan growth to 16 percent year-on-year and stable margins. However, fee income remained weak due to muted credit card spending.

Nomura (Buy; target price Rs 1,620): It said loan growth has re-accelerated and credit costs surprised positively, with asset quality remaining strong. It expects return ratios of around 2.2 percent RoA and 16 percent RoE over FY27-28. Lower credit costs will offset softer fee income.

Jefferies (Buy; target price Rs 1,670): The brokerage highlighted that the earnings beat was driven by lower provisions due to recoveries and fewer slippages. It expects earnings growth to remain steady, with a 13 percent CAGR in profit before tax over FY26-29 and return on equity of 16 percent.

Kotak Institutional Equities (Buy; target price Rs 1,800): It said earnings grew 8 percent year-on-year, led by lower provisions. The brokerage added that operating profit growth remained modest. It prefers the bank’s balance sheet strength over aggressive growth, even as expectations remain high given its leadership position.

Morgan Stanley (Overweight; target price Rs 1,705) said profit beat estimates by 7 percent, driven by lower provisions and slightly better core operating performance. It added that growth remains resilient despite geopolitical uncertainties, though margins saw a marginal decline sequentially.

JPMorgan (Overweight; target price Rs 1,600): The brokerage highlighted strong advances growth of 6 percent sequentially, beating estimates and peers, along with an improvement in NII growth to 8.4 percent year-on-year. It expects NII growth to improve further if rate cuts are delayed.