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IndusInd Bank’s Q1 FY26 net profit fell 68% year-on-year to Rs. 684 crore, sharply missing investor expectations.
The stock price dropped 0.17% to Rs. 800.70, showing investor concern despite revenue growth.
Analysts cite one-time merger-related charges as a key reason for the profit drop, but core banking performance remained stable.
IndusInd Bank share price is witnessing mild pressure in today’s trading session following the Q1 FY26 results. As of 11:44 AM, the stock is trading at Rs. 800.70, down 0.17% from the previous close of Rs. 802.05. The stock opened slightly lower at Rs. 800 and has since traded in a volatile range between Rs. 796.20 and Rs. 818.85.
According to CNBC TV18 report, the private sector lender reported a 68% year-on-year drop in standalone net profit to Rs. 684 crore for the quarter ended June 30, 2025. On a consolidated basis, the net profit fell 72% YoY to Rs. 604 crore. While these numbers reflect major declines, they came in better than market expectations, offering some relief to investors.
Analysts had earlier projected a net profit of Rs. 559 crore and net interest income (NII) of Rs. 4,279 crore for the quarter, the current figures beat both. The NII for the quarter stood at Rs. 4,640 crore, down 14% YoY, pointing to weaker core lending activity. Total income, which includes both interest and fee income, fell to Rs. 14,421 crore from Rs. 14,988 crore a year ago.
The decline in profitability was largely due to a drop in advances and a rise in provisions. Total advances were down 4% YoY to Rs. 3.34 lakh crore, while provisions and contingencies came in at Rs. 1,760 crore. Gross Non-Performing Assets (GNPA) rose to 3.64% from 3.13% in the previous quarter, and Net NPA increased to 1.12%.
The vehicle finance segment remains a major contributor, with a loan book of Rs. 96,357 crore, followed by corporate advances at Rs. 1.33 lakh crore. Deposit growth was flat, with total deposits at Rs. 3.97 lakh crore, and the CASA ratio at 31.48%.
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Today’s trading volume has been robust at over 82 lakh shares, with a total turnover of Rs. 659 crore. The stock’s 20-day average volume is just above 40 lakh, suggesting higher-than-normal participation today. The Volume-Weighted Average Price (VWAP) is Rs. 806.14, indicating some intraday selling pressure.
At the current market price, the stock has a market capitalization of Rs. 62,410 crore. Its trailing twelve-month EPS stands at Rs. 33.06, which is down 71.47% YoY. The Price-to-Earnings (PE) ratio is at 24.23, which is above the sector average of 20.27, suggesting the stock may be trading at a premium despite weak earnings. However, the Price-to-Book (P/B) ratio of 0.95 is considered low, possibly signaling undervaluation on an asset basis.
IndusInd Bank shares continue to face pressure from past accounting setbacks and rising NPAs. However, the better-than-expected Q1 performance could help stabilize investor sentiment in the near term.
IndusInd Bank share price chart on TradingView shows a loss of 1.13% as of 12.40 PM:
Analysts will be closely watching whether the bank can recover its lending momentum and improve asset quality in the coming quarters. Investors should remain cautious but note that the stock trades well below its 52-week high of Rs. 1,498 and far from its all-time high of Rs. 2,038. Hence, potentially offering upside if fundamentals improve.
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1. What is IndusInd Bank's share price today?
As of now, IndusInd Bank shares are trading at Rs. 800.70, showing a marginal dip of 0.17% from the previous day. The price has been volatile after the Q1 results were declared, with investors reacting to the sharp drop in net profit. The Rs. 800 level is seen as an important support zone in the short term.
2. Why did IndusInd Bank’s profit fall 68% in Q1 FY25?
The steep 68% decline in profit, from Rs. 2,124 crore to Rs. 684 crore, was mainly due to one-time expenses related to the merger with Bharat Financial Inclusion Ltd (BFIL). The bank had to absorb goodwill amortisation and integration costs. While operational income was stable, these charges severely impacted net earnings.
3. Is IndusInd Bank a good stock to buy after the Q1 results?
Investors should be cautious in the short term due to weak earnings and pressure on the stock. However, long-term investors may view the drop as a buying opportunity if they believe in the bank’s strong retail and corporate loan books. Analysts expect the stock to recover once merger costs stabilize.
4. How did IndusInd Bank perform operationally in Q1 despite the profit fall?
Despite the profit decline, IndusInd Bank reported stable net interest income (NII) and strong loan growth in both retail and corporate segments. Deposits rose, and asset quality remained controlled. Core operations are still sound, which indicates potential for recovery in future quarters.
5. What should investors watch for in IndusInd Bank's next earnings?
Going forward, investors should monitor how the merger integration progresses, and whether the one-time costs are fully absorbed. Improvement in margins, cost control, and continued loan book expansion will also be critical indicators of a rebound. Analysts will look for normalized profit levels by Q3.
