IndusInd Bank share price gained 6% on Monday after the private sector lender swung into profit in the fourth quarter of FY26. IndusInd Bank shares rose as much as 5.99% to ₹899.15 apiece on the BSE.
IndusInd Bank reported a net profit of ₹594.2 crore in the fiscal fourth quarter ended March 31, 2026, as against a loss of ₹2,236 crore in the year-ago period. The bank’s net interest income (NII) increased 43.4% year-on-year (YoY) to ₹4,372 crore, while the net interest margin (NIM) improved to 3.39% from 2.25%.
IndusInd Bank’s provisions and contingencies in Q4FY26 dropped to ₹1,484 crore, down 38.6% YoY, and down 29% sequentially. Asset quality improved, with gross non-performing assets (NPA) ratio falling to 3.43% in the March quarter from 3.56% in the previous quarter.
The lender also declared a final dividend of ₹1.5 per share for FY26. IndusInd Bank dividend record date is June 26, Friday.
Should you buy, sell or hold IndusInd Bank shares after Q4 results?
IndusInd Bank Q4 results indicate the worst of the stress cycle is likely behind, with the bank now entering a phase of gradual recovery, according to JM Financial.
With balance sheet repair largely behind and growth expected to follow, the brokerage firm believes the downside looks limited particularly at the stock’s current valuation of 0.9x FY28E BVPS.
“IndusInd Bank is entering a stabilisation phase with improving asset quality, lower credit costs and a stronger liability franchise laying the foundation for gradual earnings recovery. While profitability remains below historical levels, the worst appears behind and growth should follow as its balance sheet normalises,” said JM Financial.
It expects average RoA and RoE of ~0.8% and 7% in FY27E and FY28E.
JM Financial upgraded its rating on IndusInd Bank shares to ‘Add’ from ‘Reduce’ and raised the target price to ₹925, valuing it at 1x FY28E P/BV, from ₹780 earlier.
Nuvama Institutional Equities expects IndusInd Bank’s earnings and credit costs to improve, but the trajectory towards normalized loan growth remains challenging. It noted that the stock currently trades at 1x FY27 P/BV, and retained its ‘Hold’ rating with an unchanged IndusInd Bank share price target 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. It believes improving sectoral tailwinds (growth / margin / asset quality) and favorable sentiment toward large private banks should further aid IndusInd Bank’s re-rating.
The brokerage firm reiterated its ‘Buy’ call on the stock and IndusInd Bank share price target of ₹1,100 apiece, valuing the bank at 1.4x FY28E ABV.
“We will watch out for the bank to unveil its full-fledged long-term transformation strategy. Key risk to our call remains earlier-than-expected business or asset quality turnaround,” Emkay Global said.
At 9:20 AM, IndusInd Bank share price was trading 5.15% higher at ₹892.00 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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