IndusInd Bank shares climbed as much as 6% to ₹899.90 on Monday morning following the release of Q4FY26 results that indicated a potential turnaround for the beleaguered lender. According to reports from The Economic Times, the bank's performance marked a decisive return to form after a loss-making second quarter, with profit surging 331% sequentially and asset quality showing the first credible signs of stabilization. The Q4 numbers signalled what analysts are calling a gradual recovery, with profitability improving ahead of estimates, driven largely by a sharp fall in provisions, even as operating performance remained soft.
Jefferies maintained its Buy rating while raising its price target to ₹1,100 from ₹1,000, rolling it forward on 1.2x June 2028 adjusted book value. As reported by The Economic Times, the brokerage noted that "IIB's performance in the March quarter is encouraging, with earnings ahead of estimates aided by lower credit costs and higher treasury gains." HSBC also moved to Buy with a target of ₹1,100, lifting FY27 and FY28 EPS estimates by 20% and 10% respectively, citing stronger loan growth, better margins, and lower credit costs. Bernstein maintained an Outperform rating with a target of ₹1,000, stating the quarter "reflected early but visible signs of stabilisation" across asset quality, balance sheet trends, and profitability.
According to The Economic Times, several brokerages highlighted encouraging developments in the bank's performance. Motilal Oswal reiterated Neutral with a revised target of ₹950, noting a "decent quarter" supported by stronger net interest income and sharply lower-than-expected provisions. The brokerage projects return on assets of 0.7% and return on equity of 5.6% for FY27, and raised FY27/28 earnings estimates by 14% and 18% respectively. JM Financial upgraded the stock to Add with a target of ₹925, calling IndusInd Bank an institution now entering a "stabilisation phase" with improving asset quality and a stronger liability franchise.
Despite the positive momentum, not all analysts are convinced about the recovery trajectory. As reported by The Economic Times, Kotak Institutional Equities maintained its Reduce rating with a target of ₹800, describing a "mixed quarter" where lower slippages translated into lower credit costs, but return on equity remained weak at just 3% due to soft operating profitability. UBS held its Sell rating with a target of ₹730, the most bearish on the Street, arguing the stock is "fully valued given weak growth" and pointing to a loan book that contracted 0.5% sequentially. The brokerage noted that the path to re-rating "appears slower than anticipated."
