IndusInd Bank Q4 FY26: Profit ₹594 cr, stock up 6%

Stock jumps after results; indices steady

IndusInd Bank shares rose sharply after the private-sector lender reported its March-quarter (Q4FY26) results. On the BSE, the stock jumped 5.9% in trade and touched an intra-day high of ₹899.15 per share. At 11:31 AM, it was trading 3.03% higher at ₹874.

The broader market was comparatively calm. The BSE Sensex was up 0.53% at 77,070.41 at the same time, indicating the move was largely stock specific. The results were announced after market hours on Friday, which set the stage for Monday’s reaction.

Q4 profit turnaround drives sentiment

IndusInd Bank reported a net profit of ₹594.17 crore for Q4FY26, compared with a net loss of ₹288.71 crore in the same quarter last year. Another figure cited in the provided data set compared the quarter against a loss of ₹2,236 crore a year earlier. The common message across the reports was that the bank returned to profitability and the market responded positively.

A separate set of “financial highlights” in the provided text also said net profit for Q4FY26 was ₹594 crore, and added a sequential comparison: profit rose 364% QoQ from ₹128 crore in Q3FY26. That sequential jump was positioned as traction in the turnaround.

NII and NIM: sharper margins underpin the quarter

Net interest income (NII) was reported at ₹4,371 crore to ₹4,372 crore for the quarter, up 43% year-on-year. The “financial highlights” also noted NII was down 4% sequentially, suggesting a strong annual base effect but a softer quarter-on-quarter trend.

Margins were a key positive. Net interest margin (NIM) was reported at 3.39%, improving from 2.25% a year ago. The quarter-on-quarter comparison in the same text said NIM rose to 3.39% from 3.35% in Q3FY26.

Provisions fall; asset quality shows marginal improvement

Lower provisioning was a central driver behind the profit beat narrative. Provisions and contingencies for Q4FY26 were reported at ₹1,484 crore, down 38.6% year-on-year and 29% quarter-on-quarter, as cited in the Hindi-language section of the provided data.

Asset quality also improved slightly on a sequential basis. Gross non-performing assets (GNPA) ratio declined to 3.43% in the March quarter from 3.56% in the previous quarter. Broker commentary in the text linked the improved performance to better slippages and credit costs.

Market moves: IndusInd up, peers down post earnings

The text also compared reactions across banking names after March-quarter earnings. IndusInd Bank climbed about 6%, while RBL Bank and Axis Bank declined.

On the NSE, IndusInd Bank shares rose 6.12% to hit ₹899.90. In contrast, RBL Bank fell 4.76% to ₹306.10, and Axis Bank declined 4.83% to ₹1,299.90. The report attributed RBL’s weakness to softer margins and fee income, alongside continued stress in the credit card segment, while Axis was said to have missed on operating profit.

What brokerages changed: targets and ratings

Brokerages broadly acknowledged an improving quarter, but their conclusions differed on how quickly growth and profitability normalise.

• Motilal Oswal Financial Services: Neutral, target raised to ₹950 from ₹930. It cited stronger NII and lower-than-expected provisions, and said analysts raised earnings by 14% and 18% for FY27E and FY28E, projecting RoA/RoE at 0.7% and 5.6% for FY27E.
• Emkay Global: Buy, target ₹1,100. It noted the bank returned to profitability in Q3 after a loss in Q2 and gained further traction in Q4 on lower credit cost.
• Equirius Securities: upgraded to Add, target raised to ₹950 from ₹790. It expected modest NIM improvement and a stronger recovery in fees and opex, while projecting FY28E RoA/RoE at 1.1% and 10.5%, and flagged limited near-term upside.

Other brokerage calls cited in the text include:

• ICICI Securities: target ₹900, while noting the “worst is likely over” but loan growth normalisation could be difficult amid mix changes and a competitive deposit environment.
• Antique Stock Broking: HOLD, target cut to ₹915 from ₹930.
• Nirmal Bang Institutional Equities: HOLD, target raised to ₹899 from ₹807.
• Nuvama Institutional Equities: HOLD, target ₹900, stating the stock trades at 1x FY27E P/BV and the loan growth trajectory remains challenging.
• HDFC Securities: Reduce, target ₹760, citing “multiple handicaps” including a sub-par deposit franchise, inadequate provisioning buffers, and stress in the unsecured book.

JM Financial and Nomura: upgrades add to the rerating narrative

JM Financial said the Q4 result suggests the worst of the stress cycle may be behind the bank, and it upgraded the rating to Add from Reduce. It set a target price of ₹925 and referenced valuation at 1x FY28E P/BV, versus an earlier ₹780 target.

Nomura’s upgrade also featured prominently in the provided text as a driver of another 6% move in the stock on a separate trading day. Nomura upgraded IndusInd Bank to “buy” and raised its target price to ₹1,050 from ₹700, implying a potential upside of 25% from the then-current level cited. Nomura said the stock was trading at 0.9 times its one-year forward book value per share (BVPS), and it raised EPS estimates by 14% to 16% for FY27 and FY28 on expectations of higher NII and lower credit costs.

Key numbers at a glance

Valuation and recent price context from the data

The provided data set included multiple reference points on price and range. One table cited a current market price (CMP) of ₹780 in April 2026, with a 52-week high of ₹1,695 and a 52-week low of ₹600. Another section said the stock had fallen 43.51% over the last year but gained about 8.63% in the past month.

A separate price context also noted the stock bounced back 41% from its 52-week low of ₹605.40 touched on March 12, 2025, and that average trading volumes jumped over threefold with around 10 million shares changing hands on the NSE and BSE combined on a day when the stock rose strongly.

What investors will track next

Based on the broker notes quoted, the key swing factors remain credit costs, provisioning, and the pace of loan growth normalisation alongside deposit mobilisation. Several brokerages explicitly highlighted that while earnings and credit costs may improve, growth recovery could be slower.

The next set of management commentary and subsequent quarterly updates will likely be watched for confirmation on whether the improvement in slippages and credit costs sustains, and whether growth headwinds in vehicle and SME-linked segments ease.

Conclusion

IndusInd Bank’s stock reaction followed a Q4FY26 return to profit, helped by lower provisions, higher margins, and a small sequential improvement in asset quality. Brokerages raised targets in several cases, but ratings still span from Reduce to Buy, reflecting differing views on how quickly profitability and growth normalise. The next few quarters will be important for validating the credit-cost trajectory and the bank’s ability to restart growth without compromising asset quality.