IDFC First Bank Ltd. share price target

IDFC First Bank (IDFCFB) has delivered strong balance sheet growth, with advances and deposits registering a CAGR of 21% and 26%, respectively, in the past three years.

Improving liability franchise and margins to support earnings quality: The bank continues to strengthen its funding profile, with CASA ratio improving to 50.8% (vs. 49.8% in Q4FY26) and cost of funds declining to 5.96% (vs. 6% in Q4), supporting underlying NIM expansion to ~5.9% (adjusted for one-offs). While continued growth in corporate loans (30% YoY) may modestly dilute yields and management expects some normalization in the investment book, FY27 NIM guidance has been upgraded to ~5.8% (from 5.75% earlier), reflecting confidence in sustaining margins through liability repricing and balance-sheet optimization....

We maintain our BUY recommendation on the stock.

IDFC First Bank (IDFCFB) reported 1QFY27 PAT of INR10.7b (up 132% YoY/237% QoQ, 34% beat on MOFSLe), led by healthy operating performance and lower-than-expected provisioning.

IDFC First Bank (IDFCFB) delivered a strong Q1FY27 across parameters — deposits growth, NIM, opex and asset quality (AQ) along with an upbeat guidance. Q1FY27 PAT was its highest ever, at INR 10.8bn (up 132% YoY; ~35% beat).

Retail funded asset forms ~59% of total funded asset Branch network is at 1,147 as on Mar 2026 Q4FY26 performance: IDFC First Bank reported a mixed Q4FY26 performance, with strong core trends offset by one-offs and slower deposit momentum. Advances grew 20% YoY (4% QoQ) to 2.9 lakh crore, led by vehicle, gold, MSME and wholesale segments, while deposits grew 17% YoY (1% QoQ), impacted by SA rate cuts, tight liquidity and fraud-related sentiment. NII grew 16% YoY with NIM at 5.93%. Provisions declined sharply, resulting in credit cost moderating to 1.63%,...

We maintain our BUY recommendation on the stock.

IDFC First Bank (IDFCFB) reported a 4QFY26 PAT of INR3.19b (up 4.9% YoY/down 37% QoQ). This represented a 99% beat to MOFSLe amid a tax reversal of INR1.7b on account of a favorable tax order.

Company Update

IDFCFB flags suspected fraud at the Chandigarh branch related to Haryana government; forensic audit underway

IDFC First Bank (IDFCB) has reported certain fraudulent transactions in respect to unauthorized withdrawal of deposits amounting to INR5.9b from its branch in Chandigarh, Haryana.

We reiterate our BUY recommendation with a revised TP of Rs 87/share, implying an upside of 24% from the CMP, valuing the stock at 1.4x Sep'28E ABV (vs 1.6x earlier) for a RoA/RoE delivery of 1-1.2%/9-12% over FY27-28E vs 0.4/3.7% in FY26E.

Q3FY26 performance: IDFC First Bank has delivered on most operational fronts in Q3FY26, with strong balance sheet growth, improving margins, and better asset quality trend. Loans grew ~21% YoY (4.8% QoQ) to ~2.8 lakh crore, led by broadbased traction across mortgages, vehicle, consumer, and MSME segments, while deposits rose ~24% YoY (5% QoQ) to ~2.82 lakh crore, with CASA ratio improving to ~51.6% (up 157 bps QoQ). NIM expanded 17 bps QoQ to 5.76%, aided by lower cost of funds and an improved liability mix, driving ~12% YoY growth in NII. Asset quality improved sequentially, with GNPA declining to 1.69% (down 17 bps QoQ) and credit cost moderating to ~2.05% (down 19 bps QoQ), supported by easing MFI...

PAT missed estimates marginally, mainly due to higher opex. Return ratio likely to improve on operating leverage and AQ improvement

We maintain our BUY recommendation on the stock.

IDFC First Bank (IDFCFB) reported 3QFY26 PAT of INR5b (up 48% YoY/up 43% QoQ, in line), as NII and PPoP both stood in line. NII grew 12% YoY/7.4% QoQ to INR54.9b (in line). NIMs expanded 17bp QoQ to 5.76%, with the outlook improving amid a better asset mix and benefits from the recent cut in SA rates.

Quarterly Update Q2FY26

PAT missed estimates mainly due to higher opex; return ratio likely to improve on operating leverage and asset quality improvement

Q2FY26 performance: IDFC First Bank reported a mixed Q2FY26 performance as healthy loan and deposit growth was offset by margin pressure and lower treasury gains. NII rose 6.8% YoY to 5,113 crore, while NIM contracted 12 bps QoQ to 5.6%. Provisions moderated to 1,452 crore, aiding PAT of 352 crore (up 76% YoY, down 24% QoQ). Asset quality improved with GNPA/NNPA at 1.86%/0.52%. Funded assets expanded 19.7% YoY to 2.67 lakh crore led by mortgage, vehicle and...