IndusInd Bank Shares Surge 6% Following Strong Q4 Results and Broker Upgrades
IndusInd Bank shares jump 6% on posting Q4 results; few brokerages raise TP
Business Standard
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IndusInd Bank's shares rose 5.9% to an intra-day high of ₹899.15 after reporting a net profit of ₹594.17 crore for Q4FY26, a significant turnaround from a loss last year. Brokerages have raised their price targets, reflecting positive sentiment about the bank's performance and future strategies.
- 01IndusInd Bank reported a net profit of ₹594.17 crore for Q4FY26, compared to a loss of ₹288.71 crore last year.
- 02Net interest income increased by 43% year-on-year to ₹4,371 crore.
- 03Brokerages have raised their price targets, with Emkay Global setting it at ₹1,100.
- 04The bank's return on assets improved to 0.45% from 0.1% in the previous quarter.
- 05IndusInd Bank plans to target a 1% exit return on assets by FY27.
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IndusInd Bank's shares experienced a significant increase of 5.9%, reaching an intra-day high of ₹899.15 on the Bombay Stock Exchange (BSE) after the bank reported strong financial results for the fourth quarter of FY26. The bank posted a net profit of ₹594.17 crore, a notable recovery from a net loss of ₹288.71 crore in the same quarter last year. The net interest income (NII) surged by 43% year-on-year to ₹4,371 crore, although it showed a slight decline of 4% from the previous quarter. The bank's board also recommended a final dividend of ₹1.50 per equity share, pending shareholder approval.
Brokerages reacted positively to the results, with Motilal Oswal Financial Services maintaining a neutral rating but raising its price target from ₹930 to ₹950. Emkay Global Financial Services upgraded its rating to 'Buy' and set a target of ₹1,100, citing improved profitability and lower credit costs. Analysts expect the bank to achieve a return on assets of 1% by the end of FY27, up from 0.45% in Q4FY26. Overall, the bank's strategic focus on managing credit costs and improving margins is expected to support its financial recovery.
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The rise in IndusInd Bank's share price reflects improved investor confidence, which may lead to increased investment in the bank and potential benefits for shareholders through dividends.
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