IndusInd Bank Share Price Surges 6% Following Release of Q4 Financial Results
IndusInd Bank Shares Jump 6% After Fourth Quarter Profit
IndusInd Bank's share price surged 6% on Monday following the private sector lender's return to profit in the fourth quarter of the fiscal year 2026. The bank's shares rose as much as 5.99% to ₹899.15 apiece on the BSE, marking a significant recovery from the previous year's losses.
In its quarterly earnings report, IndusInd Bank reported a net profit of ₹594.2 crore in the fiscal fourth quarter ended March 31, 2026, a stark contrast to the loss of ₹2,236 crore in the same period last year. The bank's net interest income (NII) saw a significant increase of 43.4% year-on-year (YoY) to ₹4,372 crore, while the net interest margin (NIM) improved to 3.39% from 2.25%.
The bank's provisions and contingencies in Q4FY26 dropped to ₹1,484 crore, down 38.6% YoY, and down 29% sequentially. Asset quality also improved, with the gross non-performing assets (NPA) ratio falling to 3.43% in the March quarter from 3.56% in the previous quarter.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
| Brokerage Firm | Rating | Target Price | Valuation Multiple |
|---|---|---|---|
| JM Financial | 'Add' | ₹925 | 1x FY28E P/BV |
| Nuvama Institutional Equities | 'Hold' | ₹900 | 1x FY27 P/BV |
| Emkay Global Financial Services | 'Buy' | ₹1,100 | 1.4x FY28E ABV |
JM Financial believes that IndusInd Bank has entered a phase of gradual recovery, with the worst of the stress cycle behind it. The brokerage firm expects average RoA and RoE of ~0.8% and 7% in FY27E and FY28E, respectively. JM Financial upgraded its rating on IndusInd Bank shares to 'Add' from 'Reduce' and raised the target price to ₹925.
Nuvama Institutional Equities expects IndusInd Bank's earnings and credit costs to improve, but notes that the trajectory towards normalized loan growth remains challenging. The brokerage firm retained its 'Hold' rating with an unchanged target price of ₹900 apiece.
Emkay Global Financial Services expects IndusInd Bank's RoA to further improve to ~1.1% - 1.4% over FY28-29E, as the growth/asset-quality recovery gains further traction. The brokerage firm reiterated its 'Buy' call on the stock and target price of ₹1,100 apiece, valuing the bank at 1.4x FY28E ABV.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
At 9:20 AM, IndusInd Bank's share price was trading 5.15% higher at ₹892.00 apiece on the BSE.
Investor Takeaway
Investors may consider buying IndusInd Bank shares after the Q4 results.
More in Market
Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Indian Stocks to Watch: BHEL, Agarwal Industrial, JBM Auto, Rajesh Exports, Indian Energy Exchange, Lenskart Solutions in Market Focus on June 4.
