IDBI Bank Q4 FY26: net profit slips 4%, FY26 up 27%

Audited FY26 numbers land with a mixed quarterly picture

IDBI Bank has released its audited financial results for the quarter and year ended March 31, 2026, along with the auditors’ report. The audited disclosure shows a softer March quarter profit compared with the same quarter last year, even as the full-year performance improved sharply. The bank reported consolidated quarterly total revenue of ₹9,517.50 crore in March 2026, up 14.0% quarter-on-quarter and 4.7% year-on-year. Consolidated operating profit for the quarter stood at ₹3,106.81 crore, while consolidated net profit came in at ₹2,007.12 crore. The quarterly print matters because it is the last set of audited numbers for FY26 and typically frames investor focus on profitability, margins, and asset quality into the next year.

Q4 FY26: revenue up, operating profit recovers from Q3

On a sequential basis, the March 2026 quarter showed a strong recovery in operating profit. Operating profit rose to ₹3,106.81 crore in March 2026 from ₹1,950.13 crore in December 2025, as per the consolidated table shared in the filing excerpt. That is a 59.3% quarter-on-quarter increase. Over the same period, total revenue increased to ₹9,517.50 crore from ₹8,351.61 crore. Net profit moved up modestly quarter-on-quarter to ₹2,007.12 crore from ₹1,954.09 crore, a 2.7% rise.

Q4 FY26: year-on-year profit declines despite higher income

Year-on-year, the March quarter profit was lower. Consolidated net profit for March 2026 quarter was ₹2,007.12 crore versus ₹2,087.49 crore in March 2025, reflecting a 3.9% decline. Operating profit also declined year-on-year to ₹3,106.81 crore from ₹3,226.97 crore, down 3.7%. The earnings per share (adjusted) for the latest quarter was reported at ₹1.87 compared with ₹1.94 a year ago.

Separately, the narrative in the provided text also states that total income in the quarter rose to ₹9,409 crore from ₹9,035 crore in the corresponding quarter of the previous year. Interest income increased to ₹7,798 crore from ₹6,979 crore. Net interest income (NII) for the quarter was stated at ₹3,851 crore, while the prior-year NII number is not clearly legible in the provided excerpt.

Asset quality: GNPA improves, NNPA stays low

The disclosure highlights continued improvement in asset quality. Gross non-performing assets (GNPA) declined to 2.32% of gross advances as of March 31, 2026, down from 2.98% at the end of March 2025. Net NPAs were unchanged at 0.15% of advances by the end of March 2026. The provision ratio (including technical write-offs) was reported at 99.39% as of March 31, 2026, and the excerpt notes that it has been maintained above 99% since September 2023.

FY26: net profit rises 27% to ₹9,513 crore

While the March quarter was softer year-on-year, the full-year numbers were stronger. For FY 2025-26, IDBI Bank’s net profit increased by 27% to ₹9,513 crore, compared with ₹7,515 crore in the previous year. The bank also reported that total business crossed the ₹6 trillion mark. Total business was stated at ₹6,00,789 crore, showing 14% year-on-year growth. Total deposits were ₹3,47,163 crore, up 12% year-on-year, and net advances were ₹2,53,626 crore, up 16% year-on-year. The bank also flagged that CASA was up 7% year-on-year.

Capital position strengthens further

The excerpt also points to an improvement in capital buffers. IDBI Bank’s capital adequacy ratio was reported at 26.65% as of March 31, 2026, compared with 25.05% a year earlier. For context, the text also includes FY25 capital adequacy of 25.05%.

What the earlier FY25 base looked like

The FY26 growth is easier to interpret when set against FY25 metrics provided in the excerpt. During FY 2024-25, the bank’s total income was ₹33,826 crore, comprising interest income of ₹28,902 crore and other income of ₹4,924 crore. Interest expenses were ₹14,276 crore and operational expenses were ₹8,472 crore, leading to total expenditure (excluding provisions and contingencies) of ₹22,748 crore. Net profit for FY25 was ₹7,515 crore. The bank also disclosed FY25 EPS of ₹6.99 and book value per share (excluding intangible assets and deferred tax asset) of ₹40.58 as of March 31, 2025. The board recommended a dividend of ₹2.1 per equity share (face value ₹10) for FY25, subject to shareholder approval.

Q3 FY26 snapshot included in the filing excerpt

The provided material also carries a Q3 FY 2025-26 snapshot that helps frame the trajectory into Q4. For Q3 FY26, profit after tax (PAT) was ₹1,935 crore and profit before tax (PBT) was ₹2,459 crore. Operating profit for the quarter was ₹1,917 crore. Reported ROA was 1.83% and ROE was 14.49%. NII was ₹3,209 crore and NIM was 3.52% (core NIM 3.33%). The excerpt also lists Q3 FY26 deposits at ₹3,07,858 crore and net advances at ₹2,38,786 crore, with a CASA ratio of 44.06%.

Key reported metrics at a glance

Market impact: what investors typically track from this release

From the data disclosed, the most visible near-term signal is the divergence between quarterly and annual performance. The March quarter shows year-on-year pressure on operating profit and net profit, while the full year reflects higher profitability and growth in business volumes. Asset quality indicators also remained supportive, with GNPA down to 2.32% and NNPA at 0.15% as of March 31, 2026. The provision ratio reported at 99.39% suggests a high coverage buffer in the disclosed framework.

For banking investors, the mix of profit trajectory, asset quality movement, and capital adequacy is central because it shapes the bank’s flexibility to absorb stress and fund growth. The bank’s reported capital adequacy ratio of 26.65% as of March 31, 2026 is higher than the 25.05% disclosed for March 31, 2025. Growth metrics such as deposits of ₹3,47,163 crore and net advances of ₹2,53,626 crore for FY26 also provide a view of balance sheet expansion during the year.

Why this update matters

The audited FY26 release places numbers behind two parallel narratives: a slower year-on-year March quarter, and a materially stronger full year. The quarterly softening in net profit contrasts with the full-year 27% rise in profit to ₹9,513 crore. At the same time, the bank reported continued improvement in GNPA and a steady low NNPA ratio, alongside an improving capital adequacy position. Those indicators are often used to assess the sustainability of earnings quality in a lender.

Conclusion

IDBI Bank’s audited FY26 results show a modest year-on-year decline in March quarter net profit to ₹2,007.12 crore, even as FY26 net profit rose 27% to ₹9,513 crore. The bank also reported stronger business scale, improved GNPA, and a higher capital adequacy ratio as of March 31, 2026. The next set of quarterly disclosures will be watched for confirmation of the income trend and whether asset quality indicators remain stable at the reported levels.