IndusInd Bank shares: Why this stock fell 6% despite Q1 profit beat; upside capped?
Equirus Securities said June was a mixed quarter for IndusInd Bank (IIB), with improving asset quality and business growth offset by a 4 basis points sequential decline in core net interest margin (NIM).
- Jul 23, 2026,
- Updated Jul 23, 2026 9:56 AM IST
IndusInd Bank shares: Why this stock fell 6% despite Q1 profit beat; upside capped?
IndusInd Bank Ltd shares fell 6 per cent in Thursday's trade as analysts said the bank's normalised net interest margin (NIM), adjusted for tax on an income tax refund, declined 3.35 per cent QoQ in the June quarter due to an adverse loan mix, resulting in a 3 per cent miss on net interest income (NII). While IndusInd Bank's Q1 net profit beat Street estimates on one-off , analysts said the management guided for further pressure on NIMs in Q2FY27 before a recovery in H2FY27. For now, given the recent rally, analysts said upside looks capped for the stock.
Equirus Securities said June was a mixed quarter for IndusInd Bank (IIB), with improving asset quality and business growth offset by a 4 basis points sequential decline in core net interest margin (NIM). Wholesale drove loan growth, which is likely to keep September quarter NIM under pressure, it said.
The brokerage said IndusInd Bank is nearing the end of its clean-up cycle, with business growth and return on asset (RoA) at an inflection point. However, it feels that valuations of 1.1 times FY28 ABV for a 10 per cent RoE bank growing in line with the system largely reflect the expected 4QFY27 exit RoA of 1 per cent. It suggested an IndusInd Bank target of Rs 1,055.
"With the recovery largely priced in after the stock's recent run (up 16 per cent in the last one month), we maintain ADD with a revised target of Rs 1,130 (Rs 925 earlier), valuing the bank at 1.2x FY28E P/BV (earlier 1x FY28E P/BV)," JM Financial said.
By 10 am, IndusInd Bank shares had declined 6.3 per cent to hit a low of Rs 1,002.50 on BSE.
Ashika Stock Broking said it expects IndusInd Bank's recovery to remain gradual given the ongoing rebuilding of momentum across Retail and SME businesses and continued portfolio recalibration. An upgraded target multiple by Ashika Stock Broking on the IndusInd Bank implied a target price of Rs 1,082, hinting at limited upside ahead.
MOFSL said IndusInd's business momentum picked up QoQ, led by strong growth in the corporate segment, while retail book growth remains muted. Deposit growth was driven by higher retail deposits, taking the retail deposit share to 49.5 per cent of total deposits. The reduction in slippages was broad-based but MOFSL said slippages in the VF and MFI segments inched up due to seasonality, leading to a partial miss on our provision estimates for Q1.
"The bank expects loan growth to broadly track industry growth in FY27, with potential to outpace the industry in FY28," it said while maintaining a 'Neutral' on the stock with a target of Rs 1,125.
Nuvama Institutional Equities said IndusInd’s credit growth trajectory has turned sequentially positive while better net interest income (NII( and lower opex led to strong 37 per cent beat on profit. The management expects asset quality to improve further led by falling stress in MFI and hence LLP, which coupled with better credit growth and opex should put IndusInd Bank firmly on path to 1 per cent exit RoA in FY27E.
"We believe IIB under new management is on a firm path of a calibrated turnaround beginning FY27 and should deliver a steady uptick in RoA to 0.8–1.5 per cent over FY27–29E. Retain ‘Buy’ with a target of Rs 1,250/share (earlier Rs 1,125), based on 1.5 times Jun-28E ABV (1.4x on CMP)," Nuvama said.
IndusInd Bank shares: Why this stock fell 6% despite Q1 profit beat; upside capped?
IndusInd Bank Ltd shares fell 6 per cent in Thursday's trade as analysts said the bank's normalised net interest margin (NIM), adjusted for tax on an income tax refund, declined 3.35 per cent QoQ in the June quarter due to an adverse loan mix, resulting in a 3 per cent miss on net interest income (NII). While IndusInd Bank's Q1 net profit beat Street estimates on one-off , analysts said the management guided for further pressure on NIMs in Q2FY27 before a recovery in H2FY27. For now, given the recent rally, analysts said upside looks capped for the stock.
Equirus Securities said June was a mixed quarter for IndusInd Bank (IIB), with improving asset quality and business growth offset by a 4 basis points sequential decline in core net interest margin (NIM). Wholesale drove loan growth, which is likely to keep September quarter NIM under pressure, it said.
The brokerage said IndusInd Bank is nearing the end of its clean-up cycle, with business growth and return on asset (RoA) at an inflection point. However, it feels that valuations of 1.1 times FY28 ABV for a 10 per cent RoE bank growing in line with the system largely reflect the expected 4QFY27 exit RoA of 1 per cent. It suggested an IndusInd Bank target of Rs 1,055.
"With the recovery largely priced in after the stock's recent run (up 16 per cent in the last one month), we maintain ADD with a revised target of Rs 1,130 (Rs 925 earlier), valuing the bank at 1.2x FY28E P/BV (earlier 1x FY28E P/BV)," JM Financial said.
By 10 am, IndusInd Bank shares had declined 6.3 per cent to hit a low of Rs 1,002.50 on BSE.
Ashika Stock Broking said it expects IndusInd Bank's recovery to remain gradual given the ongoing rebuilding of momentum across Retail and SME businesses and continued portfolio recalibration. An upgraded target multiple by Ashika Stock Broking on the IndusInd Bank implied a target price of Rs 1,082, hinting at limited upside ahead.
MOFSL said IndusInd's business momentum picked up QoQ, led by strong growth in the corporate segment, while retail book growth remains muted. Deposit growth was driven by higher retail deposits, taking the retail deposit share to 49.5 per cent of total deposits. The reduction in slippages was broad-based but MOFSL said slippages in the VF and MFI segments inched up due to seasonality, leading to a partial miss on our provision estimates for Q1.
"The bank expects loan growth to broadly track industry growth in FY27, with potential to outpace the industry in FY28," it said while maintaining a 'Neutral' on the stock with a target of Rs 1,125.
Nuvama Institutional Equities said IndusInd’s credit growth trajectory has turned sequentially positive while better net interest income (NII( and lower opex led to strong 37 per cent beat on profit. The management expects asset quality to improve further led by falling stress in MFI and hence LLP, which coupled with better credit growth and opex should put IndusInd Bank firmly on path to 1 per cent exit RoA in FY27E.
"We believe IIB under new management is on a firm path of a calibrated turnaround beginning FY27 and should deliver a steady uptick in RoA to 0.8–1.5 per cent over FY27–29E. Retain ‘Buy’ with a target of Rs 1,250/share (earlier Rs 1,125), based on 1.5 times Jun-28E ABV (1.4x on CMP)," Nuvama said.