IndusInd Bank has reported its Q1 FY26 results, showing a big drop in profit. This was mainly due to lower income and an increase in bad loans (NPAs). While the bank still has strong capital and enough liquidity, concerns about its asset quality are making investors cautious. In this article, we explain what the numbers mean and how they could impact the stock.
IndusInd Bank Q1 FY26 Results – Key Financial Highlights
| Metric | Q1 FY26 | Q1 FY25 | Change YoY |
|---|---|---|---|
| Net Profit | ₹604 crore | ₹2,171 crore | ▼ 72% |
| Net Interest Income (NII) | ₹4,640 crore | ₹5,408 crore | ▼ 14% |
| Net Interest Margin (NIM) | 3.46% | 4.25% | ▼ 79 bps |
| Operating Profit | ₹2,652 crore | — | — |
| Provisions | ₹1,738 crore | — | — |
| Gross NPA | 3.64% | 3.13% (Q4 FY25) | ▲ QoQ |
| Net NPA | 1.12% | 0.95% (Q4 FY25) | ▲ QoQ |
| Net Worth | ₹62,961 crore | ₹62,532 crore | ▲ Slight |
| Deposits | ₹3,97,144 crore | ₹3,98,513 crore | ▼ Slight |
| CRAR | 16.63% (excl. Q1 profit) | — | Healthy |
| LCR | 141% | — | Strong |
| Return on Assets (ROA) | 0.51% | — | — |
Share Price Performance: IndusInd Bank
- Latest Price (July 31, 2025): ₹798.90 (▼ 0.38%)
- Intraday Range: ₹793.00 – ₹805.60
- 52-Week High/Low: ₹1,498 / ₹606
- Recent Trends:
- Down 5.78% in the last week
- Down 4.71% in the last 3 months
- Down 19.40% in the last 6 months
- Market Cap: ₹62,239 crore
Despite being well-capitalized, IndusInd Bank’s stock continues to underperform, reflecting investor caution following weak earnings and deteriorating asset quality.
Key Takeaways from IndusInd Bank Q1 FY26 Results
- Sharp 72% YoY decline in net profit driven by weak NII and higher provisions
- Asset quality worsened with both GNPA and NNPA rising sequentially
- Capital and liquidity ratios remain strong, signaling financial resilience
- Stock performance muted with nearly 20% erosion over the last 6 months
FAQs – IndusInd Bank Q1 FY26 Results
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Why did IndusInd Bank’s profit fall in Q1 FY26?
The 72% drop in profit was due to a combination of lower interest income and higher provisioning costs amid asset quality pressure.
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How has IndusInd Bank’s asset quality changed?
Gross and Net NPA ratios increased to 3.64% and 1.12% respectively, indicating more stressed loans.
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Is IndusInd Bank still financially strong?
Yes, the bank maintains a healthy capital adequacy ratio of 16.63% and a robust liquidity coverage ratio of 141%.
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What is the outlook for IndusInd Bank’s stock?
While current performance is weak, analysts may wait for improvement in NPA levels before upgrading the stock. The long-term outlook depends on recovery and margin stabilization.
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How does IndusInd Bank’s share price compare to peers?
Its recent 6-month decline of nearly 20% lags behind several other private sector banks, raising valuation concerns.
Conclusion
IndusInd Bank’s Q1 FY26 results were disappointing, with lower profits and a rise in bad loans. Although the bank still has strong capital and good liquidity, problems like falling margins and weaker asset quality are concerning. Investors may want to stay cautious and wait for signs of improvement before making any big decisions.
