27 Apr , 2026 By : Debdeep Gupta
IndusInd Bank shares rose about 4 percent in trade on Monday after multiple brokerages upgraded the stock following the lender’s March quarter results.
The private sector bank on Friday reported a net profit of Rs 594 crore for the fourth quarter, against a loss of Rs 2,329 crore in the year-ago period. The bank said it aims to match industry loan growth by FY27.
Gross slippages declined to Rs 1,825 crore from Rs 2,560 crore in the preceding quarter, while provisions fell to Rs 1,482 crore from Rs 2,095 crore.
Brokerage JM Financial said the bank’s Q4FY26 performance suggests that the stress cycle has likely peaked, with a gradual recovery underway. Profitability improved on a quarter-on-quarter basis, aided by lower provisions, though operating performance remained weak.
Pre-provision operating profit and net interest margins were below estimates, reflecting muted business momentum and weaker fee income. The brokerage said these are expected to improve as growth normalises, with the bank guiding for loan growth in line with the sector.
JM Financial said the decline in provisions and moderation in credit costs, supported by improvement in slippages across segments, are key positives. Asset quality also improved sequentially.
It upgraded the stock to “ADD” from “REDUCE” with a revised target price of Rs 925.
Elara Securities said earnings may have bottomed out, but execution remains key. It revised its rating to “Accumulate” from “Reduce” and raised the target price to Rs 940, while noting that stability may take time and performance could remain volatile.
Motilal Oswal said the bank reported a steady quarter, supported by higher net interest income and lower-than-expected provisions. Return on assets improved to 0.45 per cent from 0.1 per cent in the previous quarter.
It said business growth remained modest due to a reduction in the corporate book and a shift towards the mid-market segment. Deposit growth was driven by CASA, leading to a decline in the credit-deposit ratio to 79 per cent.
The brokerage retained a “Neutral” rating with a target price of Rs 950.
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