IndusInd Bank Q1 results today: What should stock investors watch

IndusInd Bank is preparing for a substantial decline in financial performance, with expectations of up to an 85% decrease in net profit for the June quarter. The bank's results, due to be announced today, are anticipated to show over a 20% decline in net interest income (NII), according to various brokerage estimates.

Motilal Oswal Financial Services (MOFSL) projected IndusInd Bank's net profit at Rs 571.90 crore, with NII anticipated to fall 23.1% to Rs 4,156.70 crore. The brokerage warns of modest business growth and further deterioration in asset quality, which could put pressure on margins. Credit costs will be a focal point for analysts during the earnings call.

InCred Equities predicts a 49.90% year-on-year decline in net profit to Rs 1,100 crore, with NII down by 14.4% at Rs 4,600 crore. Credit costs are expected to fall to 178 basis points in Q1, from 272 bps in the prior quarter.

YES Securities predicts an 80% drop in quarterly profit, partly due to a unique growth path the bank has undertaken. It anticipates a sequential loan growth of around 0.5% and higher NII growth, attributed to certain one-offs from the previous quarter. "Consequently, NIM will be higher sequentially. Sequential fee income growth will be lower than loan growth. Opex growth would slightly lead business growth. Slippages would be lower on a sequential basis. Provisions will be lower as the bank had created provision on additional MFI slippages in 4QFY25."

Nomura India forecasts an 84% fall in profit to Rs 350 crore, with NII expected to drop by 23% to Rs 4,150 crore. The pre-provision operating profit is projected at Rs 1,760 crore, marking a 56% year-on-year decline. The brokerage also anticipates a 4% decrease in loans and stagnant deposit growth.

Today's earnings announcement will focus on IndusInd Bank's search for a new CEO, a development closely monitored by investors. IndusInd Bank's shares fell nearly 3 per cent to settle at Rs 825.50  on Friday. The banking stock has fallen 15 per cent in 2025 so far against 9 per cent rise in the BSE Bankex during the same period.

This anticipated decline in financial performance comes amid broader challenges in the banking sector, including rising credit costs and tightening margins. Analysts will be keenly observing how the bank manages these issues and what strategic directions it will take moving forward.

IndusInd Bank's upcoming results will be scrutinised for any signs of strategic shifts or management changes that could impact its future performance. Investors will be particularly interested in updates regarding the CEO search and any measures to address asset quality concerns.

Nomura India said: "NIMs may decline ~25bp QoQ led by change in loan mix, repo rate cuts and elevated CoF
- Credit cost to remain elevated led by stress in MFI but should moderate on a q-q basis. Key monitorable would be outlook on asset quality, and update on succession planning," it said.