IndusInd Bank is likely to report a weak set of numbers for the April-June quarter (Q1FY26), according to analysts. However, the results may not be as surprising as the previous quarter, which was affected by large losses from its derivatives segment. The bank is scheduled to announce its Q1 results on July 28, 2025.
Lower Income and Profit Expected
As per a Moneycontrol poll, IndusInd Bank’s net interest income (NII) is expected to fall to ₹4,279 crore in Q1FY26. This is lower than ₹5,407 crore reported in the same quarter last year. The net profit is also likely to drop to ₹559 crore, compared to ₹724 crore in Q1FY25.
Analyst estimates are closely matched, meaning even a small surprise—positive or negative—could lead to a strong reaction in the stock price. Among brokerages, JM Financial has the most positive view, while Nomura has the most cautious outlook.
Key Reasons for the Weak Outlook
- Margin Pressure: The bank’s net interest margin (NIM) is expected to drop to 3.1% in Q1FY26, compared to 4.1% a year ago. This means the bank is earning less from its lending activities, said analysts at Kotak Institutional.
- Worsening Asset Quality: According to Motilal Oswal, the bank’s net non-performing assets (NPA) are likely to increase to 1% in Q1FY26, from 0.6% a year earlier. This shows a rise in bad loans.
- Slower Growth: Loan growth is expected to slow down by 3.6% year-on-year, while deposit growth is expected to remain flat, said Motilal Oswal analysts.
Other Major Events in IndusInd Bank
- IndusInd Bank’s CHRO Zubin Mody resigns
- IndusInd Bank to appoint new MD & CEO by Aug 28