IndusInd Bank Shares Surge 4% Following Brokerage Upticks, Post Q4 Results

IndusInd Bank Shares Rise 4% Following Upgrades by Multiple Brokerages

IndusInd Bank shares surged by approximately 4 percent in trade on Monday, following upgrades by multiple brokerages in response to the lender's March quarter results. The private sector bank reported a net profit of Rs 594 crore for the fourth quarter, a significant improvement from the loss of Rs 2,329 crore in the year-ago period.

The bank aims to match industry loan growth by FY27. Gross slippages declined to Rs 1,825 crore from Rs 2,560 crore in the preceding quarter, while provisions fell to Rs 1,482 crore from Rs 2,095 crore. These developments suggest a trend of gradual recovery, with stress in the sector likely having peaked.

Brokerage firms have responded positively to the bank's Q4FY26 performance. JM Financial noted that profitability improved on a quarter-on-quarter basis, aided by lower provisions, though operating performance remained weak. Pre-provision operating profit and net interest margins were below estimates, reflecting muted business momentum and weaker fee income. The brokerage expects these areas to improve as growth normalizes.

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JM Financial upgraded the stock to "ADD" from "REDUCE" with a revised target price of Rs 925. The decline in provisions and moderation in credit costs, supported by improvement in slippages across segments, are key positives. Asset quality also improved sequentially.

Elara Securities revised its rating to "Accumulate" from "Reduce" and raised the target price to Rs 940, while noting that stability may take time and performance could remain volatile. Motilal Oswal said the bank reported a steady quarter, supported by higher net interest income and lower-than-expected provisions. Return on assets improved to 0.45 percent from 0.1 percent in the previous quarter.

These upgrades reflect the brokerages' optimism regarding IndusInd Bank's prospects, particularly in terms of loan growth and asset quality. The bank's ability to match industry loan growth by FY27 and its efforts to improve operating performance will be closely watched by investors in the coming quarters.

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