IDFC First Bank Shares Rise 2.5% After Q4 Net Profit Beats Estimates, Asset Quality Improves

IDFC First Bank Reports 5% Rise in Net Profit for Q4 FY26

IDFC First Bank, a private lender, witnessed its shares rise 2.5% on April 27, as the lender reported a 5% increase in net profit at Rs 319 crore for the quarter ended March 31, 2026. This marks a significant improvement from the year-ago period, where the lender reported a net profit of Rs 304 crore.

However, on a sequential basis, the net profit declined by 36.5% due to a fraud that occurred in a Chandigarh branch. The bank has fully expensed out the impacted amount in Q4 FY26, resulting in a post-tax impact of Rs 483 crore. The management is confident that no further material financial adjustments are required beyond those already recognized.

At 10:10 am on April 27, IDFC First Bank shares were trading 2.4% higher at Rs 68.85 apiece. Global brokerage Jefferies gave a 'Buy' call on the stock, with a target price of Rs 82 per share. The brokerage noted that the Q4 profit beat estimates due to lower credit costs and higher fees. Excluding fraud-related write-offs, the profit would have been higher. Jefferies also forecasted a loan growth of around 20% and a return on assets (RoA) of 1% by FY28E.

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Global brokerage Nomura also gave a 'Buy' call on the stock, with a target price of Rs 85 per share. The brokerage noted that IDFC First Bank saw a resilient quarter amid a fraud-related overhang, with margin and asset quality surprising positively.

The lender's gross non-performing asset ratio was 1.61% at the end of March, compared to 1.69% in the December quarter. The lender's net non-performing asset ratio was 0.48% at the end of March, compared to 0.53% in the December quarter. V Vaidyanathan, MD and CEO, stated that the asset quality of the bank remains stable. The bank has seen a decrease in gross non-performing asset and net non-performing asset ratios, which has come down to healthy levels of 1.61% and 0.48% respectively.

The bank's net interest income rose 16% to Rs 5,677 crore in Q4FY26, as against Rs 4,906 crore in Q4FY25. The provisions as a percentage of average total assets reduced from 1.92% in Q1FY26 to 1.58% in Q2FY26, to 1.45% in Q3FY26, to 1.18% in Q4FY26. For the full year FY26, it stood at 1.52%.

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On April 25, IDFC First Bank shares on BSE closed 0.65% lower at Rs 67.39 apiece. The bank is confident of growing its deposit business healthily in line with past trends.