IndusInd Bank shares actually gained over 2% despite posting a steep 68% drop in Q1FY26 net profit to Rs 684 crore. The IndusInd Bank share price movement surprised investors as the Q1 results showed consolidated profit fell an even sharper 72% to Rs 604 crore. Right now, brokerages have issued mixed IndusInd Bank target price recommendations, with forecasts ranging from Rs 83 to Rs 665. The IndusInd Bank stock forecast remains quite uncertain amid asset quality concerns and also management changes that are affecting the bank.
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Analyst Ratings, Target Price & Forecast After Q1 Results
Brokerage Views on IndusInd Bank Shares
Motilal Oswal has maintained a ‘Neutral’ stance on IndusInd Bank shares with an IndusInd Bank target price of Rs 83, which offers limited 3% upside. The firm flagged several concerns about IndusInd Bank share price prospects despite the bank returning to profitability.
Motilal Oswal stated:
“We slightly raise our earnings estimates by 2.6%/2.3% for FY26/27 as the bank is focusing on containing costs and is adopting a profitability-first approach.”
Nuvama maintained a ‘Reduce’ rating with IndusInd Bank target price at Rs 600, citing weak core performance that affects the IndusInd Bank stock forecast.
Nuvama had this to say:
“Q1FY26 is the new base…core PPOP plunged 47% YoY/32% QoQ. RoA slid to 45bp from 103bp in Q3FY25 and 168bp YoY. We see the risk-reward as unfavourable.”
HDFC Securities also maintained ‘Reduce’ with IndusInd Bank target price unchanged at Rs 665, expressing concerns about the recovery timeline for IndusInd Bank shares.
Q1 Financial Performance Impact
The IndusInd Bank Q1 results showed the bank dropped standalone net profit 68% to Rs 684 crore from Rs 2,101 crore in the year-ago period. These poor IndusInd Bank Q1 results also saw net interest income declining 14% to Rs 4,640 crore, putting additional pressure on IndusInd Bank share price fundamentals.
Total income fell to Rs 14,420.80 crore from Rs 14,988.38 crore, while asset quality deteriorated particularly in the retail commercial vehicle segment. The core net interest margin was compressed to 3.35% from 4.25% previously, which affects the IndusInd Bank stock forecast outlook going forward.
Share Price Movement and Outlook
Despite the weak IndusInd Bank Q1 results, IndusInd Bank shares actually rebounded 2% to Rs 818.6 after opening lower at Rs 792.30. The stock trades above 100-day moving averages but below shorter-term indicators, creating mixed signals for the IndusInd Bank share price trend right now.
The bank’s CASA ratio dropped to 31.5% while facing succession overhang and multiple senior management exits. IndusInd Bank shares have delivered 45% returns over five years but corrected 42% in two years, underperforming benchmarks significantly.
HDFC Securities stated:
“forecasts build in single-digit loan CAGR and muted return ratios over the medium-term, as we believe that IIB needs to undergo a complete overhaul under greater regulatory scrutiny to regain stakeholder credibility, which is likely to be a long grind.”
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Management expects asset quality to stabilize within six months, as they focus on a profitability-first approach to restore confidence in IndusInd Bank shares performance. At the time of writing, the appointment of a new CEO and the pace of business recovery will be key factors for the IndusInd Bank stock forecast.